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  • Goodwill Formula Excel Template: Prepared by Dheeraj Vaidya, CFA, FRM

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    Manjunathan Mohan
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    The document provides two examples of calculating goodwill in company acquisitions. In the first example, Company ABC acquires XYZ for $100 million and non-controlling interests are valued at $12 million, with identifiable assets of $200 million and liabilities of $90 million. This results in goodwill of $2 million. In the second example, Company A acquires Company B for $90,000. Company B's assets include $6,000 cash, $44,000 accounts receivable, $30,000 inventory, and $220,000 net fixed assets, with total assets of $300,000 and liabilities of $220,000. This results in net identifiable assets of $80,000 and

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    The document provides two examples of calculating goodwill in company acquisitions. In the first example, Company ABC acquires XYZ for $100 million and non-controlling interests are valued at $12 million, with identifiable assets of $200 million and liabilities of $90 million. This results in goodwill of $2 million. In the second example, Company A acquires Company B for $90,000. Company B's assets include $6,000 cash, $44,000 accounts receivable, $30,000 inventory, and $220,000 net fixed assets, with total assets of $300,000 and liabilities of $220,000. This results in net identifiable assets of $80,000 and

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    328 views4 pages

    Goodwill Formula Excel Template: Prepared by Dheeraj Vaidya, CFA, FRM

    Uploaded by

    Manjunathan Mohan
    The document provides two examples of calculating goodwill in company acquisitions. In the first example, Company ABC acquires XYZ for $100 million and non-controlling interests are valued at $12 million, with identifiable assets of $200 million and liabilities of $90 million. This results in goodwill of $2 million. In the second example, Company A acquires Company B for $90,000. Company B's assets include $6,000 cash, $44,000 accounts receivable, $30,000 inventory, and $220,000 net fixed assets, with total assets of $300,000 and liabilities of $220,000. This results in net identifiable assets of $80,000 and

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    Goodwill Formula Excel Template

    Prepared by Dheeraj Vaidya, CFA, FRM


    dheeraj@wallstreetmojo.com

    visit - www.wallstreetmojo.com
    Let us take the example of company ABC Ltd which has agreed to acquire company XYZ Ltd. The purchase consideration
    is of $100 million in order to obtain 95% stake in XYZ Ltd. As per an esteemed valuation company, the fair value of the
    non-controlling interest is $12 million. It is also estimated that the fair value of identifiable assets and liabilities to be
    acquired are $200 million and $90 million respectively. There are no equity interests. Calculate the goodwill based on
    the given information.

    Consideration Paid $100


    Fair Value of Non-Controlling Interests $12
    Fair Value of Equity Previous Interests $0
    Fair Value of Identifiable Assets $200
    Fair Value of Identifiable Liabilities $90
    Net Identifiable Assets $110
    Goodwill $2
    rchase consideration
    he fair value of the
    nd liabilities to be
    goodwill based on
    Let us take another example of Company A which is planning to acquire Company B. The acquisition
    consideration is agreed at $90,000

    Company B Fair value


    Purchase Consideration $90,000
    Cash $6,000
    Accounts Receivable $44,000
    Inventory $30,000
    Net Fixed Assets $220,000
    Total Assets $300,000
    Total Liabilities $220,000
    Net Identifiable Assets $80,000
    Goodwill $10,000

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