Why Are Goodwill And Other Intangibles Created In An Lbo?

1.	Why Are Goodwill And Other Intangibles Created In An Lbo?
Answer» REMEMBER, these both represent the PREMIUM PAID to the "fair market value" of the company. In an LBO, they act as a "plug" and ensure that the changes to the Liabilities & Equity side are balanced by changes to the ASSETS side. Remember, these both represent the premium paid to the "fair market value" of the company. In an LBO, they act as a "plug" and ensure that the changes to the Liabilities & Equity side are balanced by changes to the Assets side.

Answer»

REMEMBER, these both represent the PREMIUM PAID to the "fair market value" of the company. In an LBO, they act as a "plug" and ensure that the changes to the Liabilities & Equity side are balanced by changes to the ASSETS side.

Remember, these both represent the premium paid to the "fair market value" of the company. In an LBO, they act as a "plug" and ensure that the changes to the Liabilities & Equity side are balanced by changes to the Assets side.

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Why Are Goodwill And Other Intangibles Created In An Lbo?

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