Goodwill
Definition · Level 9 · Valuation
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The premium an acquirer pays above the fair value of the target's identifiable net assets, booked as an intangible asset. Under IFRS and US GAAP (public companies) it isn't amortized but is tested for impairment at least yearly; a write-down hits earnings.
Example
Pay $9B for net assets fair-valued at $6B → $3B of goodwill.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 9 · Valuation, in the lesson “Balance sheet, cash flow and how they link”: Assets = liabilities + equity, the three cash-flow sections, free cash flow, and why profit isn’t cash.
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