Intangible Assets Face Scrutiny In M&A Transactions

Law360, New York (December 9, 2009, 5:25 PM EST) -- Widespread goodwill write-downs over the past year are factoring in to merger and acquisition negotiations, as companies concerned about possible hits to their balance sheets take a harder look at intangible asset values, M&A attorneys say.

Wary of paying too much for their targets, buyers are apt to question sellers’ analysis of certain less quantifiable business facets, such as strength of a company’s brand or the expertise of its management, which goodwill is intended to represent, attorneys said.

“I think we’re seeing a lot of things...
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