Components of Acquired Goodwill,”
by Thomas J. Linsmeier, Daniel D. Wangerin
and Erika M. Wheeler,
dated July 2020
This article reports the result of a study of what
makes up goodwill. It finds that it is made
up of 1) expected synergies, 2) going
concern value and overpayment. Further,
the study found that going concern value and
expected synergies are associated with a lower
risk of future goodwill impairment, but that
synergies reduce the risk of goodwill impairment
more than the going concern value component. It
also found that overpayment is associated with a
greater risk of future goodwill impairment.
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