TS Insights: Market turmoil and goodwill implications

Download TS Insights: Market turmoil and goodwill implications

From chemicals to financials, from technology to media, the number of goodwill impairments has increased dramatically. That is not surprising, given the plunge in stock prices in 2008. With further stock price declines in the beginning of 2009 and continued uncertainty in the markets, more goodwill impairment announcements might be around the corner. However, management teams that are anxious about announcing a goodwill impairment in today’s market often overlook one key item – recent goodwill impairment announcements typically have had a muted effect on stock prices by the time of the announcement.