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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Alastair McIntosh who wrote (1219)	6/25/1998 1:46:00 PM
From: peter michaelson	Read Replies (1) \| Respond to of 4634

I used to be in the acquisitions business. A little rusty now, but excess of cost over fair value is equivalent to goodwill in an asset purchase transaction. It would be amortized over an extended period or written off suddenly when the purchase price is considered to be too high when the earnings don't materialize. When you purchase assets (as opposed to stock), you bring the fair value of each asset on to your books (often via an independent appraisal). Any excess purchase price over assets go to this line item - which in fact is goodwill. I pray I'm right so no smart-butts flame me! Just trying to be of some small assistance. Peter