Goodwill Impairment Valuation
Globally Certified (CVA • ASA • ABV® • MRICS)
Valuation Experience
Valuations Completed
Industries Served
3-5 Days
When Goodwill Sits on Your Balance Sheet, Testing Is Not Optional
Goodwill is one of the largest and most scrutinized line items on any acquiring company's balance sheet.
Under ASC 350, that goodwill must be tested for impairment at least annually - and whenever a triggering event indicates the carrying amount may exceed fair value. Miss the test, misapply the methodology, or lean on unsupported assumptions, and the consequences reach far beyond a footnote. Auditor rejections, SEC comment letters, restatements, and shareholder litigation all begin with a weak impairment analysis.
At Transaction Capital LLC, every goodwill impairment engagement is prepared and signed by a credentialed appraiser - not software, not a template, not a generalist. Each report is engineered to satisfy Big 4 audit teams, SEC reviewers, and board audit committees on first review.
Our Goodwill Impairment Valuation Services
Get an Audit-Ready Goodwill Impairment Valuation Today.
Goodwill Impairment Valuation Methods We Use
| Approach | Best For | Key Methods | Formula |
|---|---|---|---|
| Income Approach | Reporting units with projectable cash flows | DCF, Capitalization of Earnings | FV = Σ FCF / (1 + WACC)^n |
| Market Approach | Reporting units with public peers or M&A comparables | GPCM, Guideline Transaction | FV = Multiple x EBITDA |
| Cost Approach | Asset-heavy or holding-company units | Adjusted Net Asset Value | FV = Fair Assets - Fair Liabilities |
Weighted Average Approach
Market Cap Reconciliation
When Do You Need a Goodwill Impairment Valuation?
- Annual Reporting Cycle - ASC 350 requires yearly testing at each reporting unit.
- Adverse Market Conditions - Industry downturns and macro shocks trigger interim testing.
- Loss of Key Customers - Material revenue concentration events require reassessment.
- Underperformance vs. Acquisition Thesis - Missed revenue, EBITDA, or synergy targets.
- Reorganization or Segment Realignment - Structural changes affect ASC 280 units.
- Market Cap Below Book Value - Interim test expected when equity drops below carrying amount.
- Going Concern or Liquidity Issues - Solvency doubts require fair value support.
Not Sure If You Need Testing?
Who Needs Goodwill Impairment Valuation Services?
Goodwill Impairment Valuation by Reporting Unit Type
| Reporting Unit | Typical Methodology | Key Consideration |
|---|---|---|
| Public Company Segment | Income + Market Approach | Market cap reconciliation required |
| Private Company Unit | DCF with Guideline Public Method | Private-company risk premiums applied |
| Recent Acquisition | Income Approach with PPA cross-check | Performance vs. acquisition-date projections |
| SaaS / Technology | DCF with Revenue Multiple | ARR, churn, and CAC drive value |
| Manufacturing | Income + Cost Approach | Capex cycles and capacity utilization |
| Healthcare | Income Approach with Payer-Mix | Reimbursement risk modeled explicitly |
| Distressed Unit | DCF with Scenario Weighting | Probability-weighted recovery assumptions |
| Multi-Segment Enterprise | Multi-Approach Consolidated | Allocation aligned with ASC 280 |
Benefits of a Professional Impairment Valuation
Find the Right Value for Your Reporting Units
with Transaction Capital LLC.
We believe in growing with our clients and offering tailored solutions.
How Our Goodwill Impairment Valuation Process Works
Free Consultation
Discuss your reporting units, triggering events, and audit timelines to receive a flat-fee quote.
Document Collection
Securely upload financials, projections, segment data, and prior PPA reports via our checklist.
Analysis & Modeling
Credentialed analysts apply ASC 350-approved methods to build audit-ready impairment models.
Draft Report Delivery
Receive your complete draft - methodology, analysis, and conclusions - before payment is due.
Final Report & Support
Signed report delivered immediately. Audit defense and auditor Q&A support included at no charge.
What Your Goodwill Impairment Valuation Report Includes
- Executive Summary - Fair value conclusions, impairment quantification, and testing date
- Reporting Unit Profile - Segment identification, operating metrics, and goodwill allocation
- Triggering Event Analysis - Documentation of qualitative factors supporting interim testing (where applicable)
- Methodology Rationale - Justification for selected approaches and alternatives rejected
- Financial Projections - Historical review, normalization adjustments, and risk-adjusted forecasts
- Discount Rate Development - WACC build-up with size premium, industry, and company-specific risk
- Market Comparables Analysis - Guideline public multiples and transaction data with comparability review
- Market Cap Reconciliation - Bridge from indicated fair value to observable market capitalization
- Sensitivity & Scenario Analysis - Impact of key assumption changes on impairment conclusions
- Compliance & Signatures - Signed certifications (USPAP, ASC 350) by credentialed experts
- Audit Defense Package - Supporting schedules, source logs, and management representations
ASC 350 Requirements - What You Need to Know
Reporting Unit Level Testing
Annual Testing Frequency
Qualitative Assessment (Step 0)
Quantitative Measurement
Triggering Event Monitoring
Market Participant Assumptions
Documented Assumptions
Compliance Standards We Follow
USPAP
IVS
ASU 2014-02
ASC 280
AICPA SSVS-1
NACVA Standards
SEC Regulation S-X
IRS Rev. Ruling 59-60
ASC 350
ASC 360
ASC 805
ASC 820
Insights From Real Valuation Engagements
2,500+ Valuations. 50+ Industries. Deep Expertise in Each.
Why Choose Transaction Capital LLC?
Big 4 Quality. Boutique Speed. Zero Compromise.
The intellectual property valuation landscape has two extremes: automated software platforms that lack legal defensibility, and large national accounting firms charging $20,000 or more with a six-week wait. Transaction Capital LLC operates where neither can compete.
| Transaction Capital LLC | Big 4 Firms | SaaS Platforms | |
|---|---|---|---|
| Credentials | ABV, ASA, CVA, MRICS | PASSES - Very High Cost | FAILS - Automated |
| Turnaround Time | 3-5 Business Days | 6-8 Weeks | 24-72 Hours |
| Starting Price | $1,500 Flat Fee | $10,000-$25,000+ | $500-$2,000 |
| Pay After Draft Review | ✓ | ✗ | ✗ |
| Multi-Reporting Unit Support | ✓ | ✓ | PARTIAL |
| Triggering Event Analysis | ✓ | ✓ | ✗ |
| Audit Defense Included | ✓ | Extra Cost | ✗ |
| SEC & Big 4 Admissible | ✓ | ✓ | PARTIAL |
Certified Experts
Complete Post-Valuation Support
Elite Leadership
Transparent Flat-Fee Pricing
Trusted by Big 4 and SEC Registrants
Impairment Valuation Pricing
| Engagement Type | Starting Price | Turnaround Time | Primary Methodology |
|---|---|---|---|
| Single Unit - Qualitative (Step 0) | $1,500 | 2-3 Business Days | Qualitative Factor Analysis |
| Single Unit - Quantitative | $2,500 | 3-5 Business Days | DCF + Market Approach |
| Multi-Reporting Unit Testing | Custom Quote | 5-7 Business Days | Multi-Approach Consolidated |
| Triggering Event Interim Test | $2,000 | 3-5 Business Days | DCF + Market Cap Reconciliation |
| Indefinite-Lived Intangibles | $1,800 | 3-5 Business Days | Relief-from-Royalty, MPEEM |
| Private Company GAAP Alternative | $1,200 | 3-5 Business Days | Simplified Impairment |
| Audit Defense & Rebuttal | Custom Quote | As Required | Full Documentation |
Pay After Draft Review
You review quality and accuracy before paying a single dollar. No other valuation firm offers this.
Trusted by Big 4 Auditors, SEC Reviewers, and Boards
We provide full, complimentary post-valuation support to guide your team through audits, regulatory reviews, and due diligence.
SEC-Registered Issuers
10-K and 10-Q footnote support and comment responseAudit Committees & Boards
Independent conclusions supporting fiduciary duties
Big 4 & Audit Firms
ASC 350-aligned reports accepted without extra reviewPE and VC Portfolio Companies
Fair value documentation for LP reporting
Thousands of Reporting Units. One Standard of Quality.
Join thousands of public companies, private acquirers, and portfolio businesses that rely on Transaction Capital LLC for goodwill impairment valuations that hold up when it matters most.
Do Not Take Our Word for It.
Transaction Capital LLC delivered a high-quality Fair Market Value (FMV) analysis with exceptional responsiveness, professionalism, and depth. The team communicated clearly throughout the process and provided strong transparency around their methodology, allowing stakeholders to understand not just the conclusions, but the rationale behind them.
The work delivered by TXN Capital LLC on the IVS 105 valuation for our deeptech startup demonstrates great quality. Their clarity in documenting assumptions and methodologies ensures transparency and ease of understanding.
Working with Gaurav at Transaction Capital LLC for our 409A valuation was seamless and professional. He delivered a thorough, defensible report quickly and explained every detail clearly. Highly recommend for any startup seeking a reliable and efficient valuation partner.
Transaction Capital LLC, led by Dr. Gaurav, is truly the best in the business valuation space. I’ve seen the results firsthand — working with anyone else would be a waste of money. Believe me, they are the best.
Gaurav is very knowledgable in his field and was super helpful in his response and explanations. He finished the contract well before the deadline! Highly recommended. Thanks Gaurav
We got the Financial Model made by Gaurav which included all the standard things. Gaurav was helpful in explaining all the complex lingos and make it simple for us to understand. Strongly recommend him for getting FM made
