Monday, March 28, 2016
Mergers and Acquisitions 101: What Is Goodwill and How Can Impairment Affect a Merger?
Have you ever wondered about how companies determine a purchase price for another company it wants to merge with? In truth, any merger or acquisition is a very complex process with many variables involved, and the purchase price of an organization or institution may be more than its fair market value. A company's fair market value is determined by its assets and liabilities. Assets include physical assets as well as intangible assets, like company branding, legal contracts, patents, and customer relationships.