easy · Investment Banking ma-lbo

What is 'Goodwill' in the context of an M&A transaction?

  1. The value assigned to the target company's customer list and patent portfolio.
  2. A reserve fund set aside on the balance sheet to absorb future operating losses.
  3. The total amount of cash consideration paid by the acquirer for the outstanding target shares.
  4. The excess of the purchase price over the fair market value of net identifiable assets

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