Definition
Goodwill sits on the balance sheet as an intangible asset. If an acquired business underperforms, the company may have to write goodwill down, which produces a large accounting loss with no cash leaving the business.
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The amount paid for an acquisition above the fair value of the assets it brought in.
Goodwill sits on the balance sheet as an intangible asset. If an acquired business underperforms, the company may have to write goodwill down, which produces a large accounting loss with no cash leaving the business.
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