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Impairment Testing

Simplify the impairment testing process

Goodwill impairment occurs when recognized goodwill associated with an acquisition is greater than its implied fair value and is a common result of a business combination. To determine whether the purchase price is higher than the fair value of the assets acquired Valutico is the perfect tool to deliver a consistent and auditable method of business valuation for initial recording of an asset as well as for its regular tests for impairment.

  • Get access to market data at any date, to extract relevant valuation multiples on the time periods you need

  • Leverage best in class pre-built models.

  • Document the valuation and its supporting data automatically.

Streamline your process

The examination of goodwill for the possible recording of an impairment involves a multi-step process on the Valutico platform:

  • Set a valuation date at any point in the past to pull market data that matches the timeline of your project in a single click

  • Search for relevant peers and transactions and their valuation multiples for any date.

  • Create your financial forecast and multiple scenarios as needed.

Adapted to the realities of your business

In the landscape of business valuation, financial multiples, averages, ratios and benchmarks are essential. Valutico provides multiples (historic, current and forward) for key metrics such as revenue, EBIT, EBITDA, Net Income; as well as important ratios such as CAPEX as as a percentage of revenue, DSO, and others. Overcoming the challenges of performing a business valuation starts with having the right level of information to be confident in your valuation assumptions.

  • Valutico enables calculation of fair value of the reporting unit to its carrying amount and of the impairment loss when applicable by delivering a valuation toolkit to estimate the price the company would receive if it were to sell the unit in an orderly transaction.

  • Valutico enables export of your final deliverable and all relevant supporting materials

  • Valutico supports importing and exporting to spreadsheets to facilitate collaboration with others and with your existing tools

Valutico impairment testing screenshot
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IN BETA

The impairment testing module is currently in Beta, contact us if you’re interested in taking part in the pilot program

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