In this study, we investigate what makes up acquired goodwill and find that it consists of at least three distinct components: expected synergies from combining the assets of the target and acquirer, the going concern value of the target firm, and overpayment. We identify these components...

Before completing an M&A transaction, acquiring firms conduct due diligence. This process provides acquiring firms with a more informed assessment of the expected costs, benefits, and risks of an acquisition and offers one last opportunity to renegotiate or terminate an M&A transaction. However,...

Before completing an M&A transaction, acquiring firms conduct due diligence. This process provides acquiring firms with a more informed assessment of the expected costs, benefits, and risks of an acquisition and offers one last opportunity to renegotiate or terminate an M&A transaction. However,...