Goodwill Calculator

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Choose "Acquisition goodwill" to calculate goodwill at the time of a deal, or "Impairment test" to check whether existing goodwill on the books should be written down.
Total consideration transferred for the acquisition: cash, shares, contingent payments, and any assumed debt included in the deal price.
The sum of fair (market) values of all separately identifiable assets acquired, including tangible assets (PP&E, inventory, receivables) and identifiable intangibles (patents, customer lists, trade names). Do not include unidentifiable goodwill here.
Fair value of all liabilities taken on in the deal: financial debt, deferred revenue, contingent liabilities, pension obligations, etc.
If you are acquiring less than 100% of the target you must include the NCI share in the goodwill calculation. Proportionate NCI = NCI % x net identifiable assets; Full goodwill/fair-value NCI = fair value of the NCI stake.
Currency
Goodwill recognisedPositive goodwill
$25,000,000

Intangible asset recorded on the consolidated balance sheet at acquisition date

Net identifiable assets$25,000,000
Goodwill as % of purchase price0.5%
Non-controlling interest value$0

Goodwill of 25,000,000 recognised at acquisition date.

  • Net identifiable assets at fair value: 25,000,000.
  • Goodwill of 25,000,000 represents 50.0% of the total consideration paid.
  • A goodwill premium of 25-50% is common in competitive markets where brand, customer relationships, and workforce drive value.

Next stepGoodwill is not amortised under US GAAP (ASC 350) or IFRS but must be tested for impairment at least annually, or more frequently if a triggering event occurs.

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