Negative Goodwill
A gain occurring when the price paid for an acquisition is less than the fair value of its net assets. Investopedia Says:
Depending on the circumstances, this is listed as a separate line item and usually recognized as income. Negative goodwill can sometimes occur after a distressed sale. Because this type of sale almost always happens under unfavorable conditions, the seller generally receives a worse price. When the price received is less than the actual value of its net assets you have negative goodwill. Related Terms:
Amortization
Badwill
Depreciation
Distressed Sale
Fair Value
Goodwill
Negative Equity
Net Asset Value |