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Study Results Show Highest Levels of U.S. Goodwill Impairment Recorded Since 2008
Duff & Phelps Corporation, a leading independent financial advisory and investment banking firm, today announced the release of the 2013 U.S. Goodwill Impairment Study, prepared in partnership with the Financial Executives Research Foundation(FERF). The 2013 Study was compiled utilizing financial information through December 31, 2012 for over 5,100 companies, representing in excess of 93 percent of market capitalization for U.S. publicly-traded companies. Duff & Phelps will host a webcast at noon EST today to review the findings of the study.
Key highlights from the study include the following:
The 2013 Study also provides summary highlights of the AICPA Accounting and Valuation Guide-Testing Goodwill for Impairment, which is now available and can be obtained at www.cpa2biz.com. The new guide provides preparers, auditors and valuation specialists with a comprehensive resource to address goodwill impairment issues.
“A primary goal of the goodwill impairment study is to provide an at-a-glance tool that allows readers to quickly benchmark where their company falls in relation to industry peers and overall market trends,” said Greg Franceschi, Duff & Phelps managing director and Co-Chairman of the AICPA Impairment Task Force that developed the new best practices guide. “In this year’s survey of financial executives we asked a number of questions about the optional qualitative goodwill impairment test (Step 0) that was introduced in 2011. Counter to industry predictions, the majority of our clients continue to perform the quantitative test, and this was supported by our survey results which found over 70 percent of companies are opting to apply the traditional quantitative Step 1 impairment test.”
Additional Highlights of the 2013 U.S. Goodwill Impairment Study Include:
Now in its fifth year of publication, the 2013 U.S. Goodwill Impairment Study continues to explore the goodwill landscape in the United States by focusing on general and industry trends of goodwill and goodwill impairment of U.S. companies; highlighting new regulatory developments impacting how the goodwill impairment test is performed; and reporting the results of its annual survey of Financial Executives International (FEI) members, representing both privately-owned and publicly-traded companies.
Duff & Phelps’ companion studies focused on Goodwill Impairment in the Canadian and European markets will be released in the coming weeks.
About Duff & Phelps
As a leading global financial advisory and investment banking firm, Duff & Phelps leverages analytical skills, market expertise and independence to help clients make sound decisions. The firm advises clients in the areas of valuation, M&A and transactions, restructuring, alternative assets, disputes and taxation – with more than 1,000 employees serving clients from offices in North America, Europe and Asia. For more information, visit www.duffandphelps.com.
Investment banking services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Transaction opinions are provided by Duff & Phelps, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.
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