Goodwill impairment valuation insights

Additional guidance from KPMG’s Valuation practice, including market participant acquisition premiums and a comparison to the 2008/9 financial crisis.

Kevin Voigt

Kevin Voigt

Partner, National Service Line Leader, Economic & Valuation Services, KPMG US

+1 313-230-3359

In March 2020, the severity of the COVID-19 pandemic rapidly escalated leading to numerous economic challenges. While the long-term impacts are still unknown, it is expected that many U.S. companies will experience declining earnings and asset values prompting the need to assess goodwill, among other assets, for potential impairment. Given that goodwill impairment will be top-of-mind for many companies, KPMG’s Valuation practice has created some valuation insights on market participant acquisition premiums and a FAQ to address a number of questions that typically arise when performing goodwill impairment tests in economic downturns.