IBM's Goodwill Value

In accounting, goodwill represents the premium a company pays over the fair market value of net assets when it makes an acquisition. It captures intangible qualities like brand reputation, a skilled workforce, and business synergies.

The Composition of IBM's Goodwill :

The Source: IBM's goodwill has steadily grown due to its long history of corporate acquisitions.

Recent Activity: High-profile software and data acquisitions (such as HashiCorp, Confluent, and DataStax) have added to this balance.

Balance Sheet Context: While $89.33 billion is carried as an asset on IBM's books, it is an "illiquid" asset. In a worst-case scenario or liquidation, this value often cannot be recovered. This has led some financial analysts to monitor the company's high reliance on intangible assets as a potential point of shareholder risk.

Question:

Given the upcoming announcement of IBM results, what do you think IBM's goodwill value is now ?

#Accounting #Acquisition #Shareholder

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6 replies (most recent on top)

Bob says goodwill drop offs are out back by the dumpster.

it's financial bookings

Most of IBM's goodwill is from acquisitions. It is purely an accounting generated entry being the difference between acquistion price paid and the fair market value of the assets acquired. It is rarely recoverable. Whenever I do analyst of companies I always strip out goodwill because there is no cash, tangible or even intangible asset (like software license rights - that is on the balance seperately) sitting behind it that can be sold. If you strip out goodwill IBM is technical insolvent.

How the mighty have fallen

Synergies. lol.

The era of IBM getting the benefit of the doubt is over

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IBM's Goodwill Value

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