Goodwill & Intangible Assets

Q: When is goodwill impairment testing required?

Goodwill impairment testing is required annually under ASC 350, and more frequently when triggering events occur — such as significant declines in market capitalisation, deteriorating operating results, or changes in the business environment.

Q: What is a triggering event for goodwill impairment?

A triggering event is any event or circumstance that more likely than not reduces the fair value of a reporting unit below its carrying amount. Common examples include significant adverse changes in the business environment, loss of key customers, regulatory changes, and sustained declines in stock price.

Q: What is a purchase price allocation?

A purchase price allocation is the process of allocating the total consideration paid in an M&A transaction across the identifiable assets and liabilities of the acquired business. It is required under ASC 805 and must be completed within the measurement period following close.

Q: What intangible assets are typically identified in a PPA?

Common intangible assets identified in purchase price allocations include customer relationships, trade names and trademarks, developed technology and software, non-compete agreements, order backlogs, and in-process research and development.

Q: How do you value intangible assets?

We apply recognised valuation methodologies including the excess earnings method for customer relationships, the relief from royalty method for trade names and technology, and the with-and-without method for non-compete agreements.

Q: How quickly can a goodwill impairment analysis be completed?

Timeline depends on the complexity of the reporting unit structure and information availability. We recommend engaging early in the reporting period to allow adequate time for analysis, documentation, and auditor review.

Q: What information do you need to complete a goodwill impairment test?

We typically require financial statements, management’s financial projections, information about the reporting unit structure, and relevant market data. We will outline specific requirements at the outset of each engagement.

Independent Valuation for Financial Reporting, Impairment Testing, and Transaction Support

Houlihan Capital provides independent goodwill impairment testing and intangible asset valuations for companies across industries, delivering analyses grounded in rigorous methodology and structured to support audit and regulatory review.

Whether you are navigating an annual impairment assessment, a triggering event, or a post-acquisition purchase price allocation, our team provides the analytical depth and documentation your auditors and stakeholders require.

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What We Do

Goodwill & Intangible Asset Valuation Services

Goodwill Impairment Testing (ASC 350)

Annual and interim goodwill impairment analyses, including Step 1 and Step 2 assessments, supporting financial reporting requirements under ASC 350.

Intangible Asset Valuation

Identification and valuation of acquired intangible assets for purchase price allocation purposes, including customer relationships, trade names, technology, and non-compete agreements.

Purchase Price Allocation (ASC 805)

Comprehensive purchase price allocation analyses for M&A transactions, allocating the acquisition price across tangible and intangible assets and liabilities in accordance with ASC 805.

Indefinite-Lived Intangible Asset Testing

Impairment testing for indefinite-lived intangible assets such as trade names and licenses under ASC 350, supporting annual and interim assessment requirements.

Long-Lived Asset Impairment (ASC 360)

Recoverability and fair value analyses for long-lived asset groups where indicators of impairment have been identified under ASC 360.

Intellectual Property Valuation

Specialized valuation of technology, patents, trade names, customer relationships, and other intangible assets for financial reporting, tax, and transaction purposes.

Why Houlihan Capital

Technical Expertise That Supports Audit and Regulatory Review

Houlihan Capital delivers goodwill impairment and intangible asset analyses built on transparent, well-documented methodology, structured to support auditor review and regulatory scrutiny from the outset.

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Audit-Defensible Methodology

Transparent, supportable analyses with comprehensive documentation that consistently satisfy auditor and regulatory review. Across annual impairment testing, triggering event assessments, and purchase price allocations.

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Industry-Specific Expertise

Deep knowledge across crypto, cannabis, healthcare, private equity, business services, and other specialized sectors, our team understands the industry-specific factors that drive intangible asset values.

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Senior-Level Engagement

Direct access to experienced valuation professionals who understand financial reporting timelines and auditor expectations. Your engagement is led and delivered by senior professionals throughout.

Common Questions

Questions Companies and Their Advisors Ask Us

When is goodwill impairment testing required?

What is a triggering event for goodwill impairment?

What is a purchase price allocation?

What intangible assets are typically identified in a PPA?

How do you value intangible assets?

How quickly can a goodwill impairment analysis be completed?

What information do you need to complete a goodwill impairment test?

Strategic Insights

Guidance for Financial Reporting and Transaction Professionals

Valuation Services Overview

A broad overview of Houlihan Capital’s valuation capabilities across financial reporting, tax, and transaction advisory.

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