Goodwill in the balance sheet of many companies is a relevant issue.
Therefore, it is important to assess consistency of this item in light of the company's business prospects.
Active Value Advisors has developed models that help companies understand what determines Goodwill according to FCF approaches, hence in a much more effective way.
This represents a key factor, as when the Impairment is stated, it is in the manager's interest to clearly explain the impact of action on prospective future business associated with the relevance and reasons for devaluation. This approach favours increasing "Market confidence".
