![]() ![]() In an extreme example, when Sprint bought Nextel in 2008, Sprint was forced to write off about $30 billion in its acquisition’s goodwill - essentially wiping out the value of its deal.ĭeciding to write off goodwill isn’t an easy decision. More often, buyers prefer that their target write off goodwill before negotiating a sale price. For example, a lending contract may consider goodwill write-offs to be a violation of covenants. Communicate your plans with prospective buyers, because some may oppose it for potential regulatory or legal issues. However, keep in mind that, if you’re considering an M&A deal, the goodwill decision may not belong entirely to you. Whether your company is public or private, in banking or another market sector, these factors could justify your own decision to write down goodwill.
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