How to Model the Pro Forma Balance Sheet

A critical part of an M&A transaction, learn How to Model the Pro Forma Balance Sheet
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[@mohammadjonaid8232]

Quick question, I know goodwill was carried forward and amplified by the excess amount over the fair market value of assets, why don’t we wipe old goodwill like we do in, say, M&A or accretion/dilution analysis?

[@franklincorneliomarte6332]

Hi Chris, thank you for the explanation and time.
Is this happening in a new legal entity? Where the new legal entity recognizes the goodwill of the acquired company

[@chrisreillyfinancialmodeling]

Hey Franklin that's correct. The Goodwill stays on the books of the new entity and typically amortized over [10] years.