Goodwill the expensive costs
Thanks to it of transaction M & A have shown a record loss
the European companies can be compelled to write off record for last decade 214 mlrd dollars in connection with an overpayment under transactions of merges and absorption (M &A), reports Bloomberg. Last record noted in 2002, was much less - 93 mlrd dollars of the Company expect huge write-offs “ gudvilla “ that is the next sign of world financial recession.
“ Gudvill “ gives itself an indicator which is difficult enough for defining, and necessity for its use arises, as a rule, at absorption transactions where it is defined as a difference between a market estimation of firm and the sum of its net wealth registered in balance. “ Gudvill “ Gives itself non-material actives of the company, including reputation, prestige, clientele, communications, the technical competence, marketing receptions, influence, etc. For last decade transactions of merge and absorption in Europe are estimated in 6,4 trln dollars And according to the experts, buyers have overpaid 1,4 trln dollars over actual (balance) cost of the got companies, that is their real actives minus their obligations.
during time “ bull “ the market “ gudvill “ it is almost imperceptible, however the new rules of the financial reporting accepted in 2005, demand to subtract this sum from profit if as a result of falling of quotations in stock markets of the action of the got companies have started to cost less “ gudvilla “ that is there is less than article of balance reflecting the award to a stock value of the company. By estimations Bloomberg, now market capitalisation of 28 European companies from list Dow Jones Stoxx 600 has fallen below their cost “ gudvilla “. A number of the investment companies and banks, including Swiss Credit Suisse, avoid to put means and to give credits to the companies which expect losses as a result of transactions of merges and absorption.
company Alcatel - Lucent, the largest world supplier of networks of a fixed communication becomes one of the most suffered: by estimations interrogated Bloomberg analysts, it should write off all sum “ gudvilla “ - 6,61 mlrd dollars Alcatel SA has got Lucent Technologies Inc. In November, 2006, since then market capitalisation Lucent was reduced with 35,5 mlrd to 4,5 mlrd dollars “ Gudvill “ the company of telecommunication Telecom Italia SA largest in Italy exceeds its capitalisation on 24 mlrd dollars Also among victims have appeared Thomson Reuters, Credit Agricole SA, Ferrovial, Banco Popolare SC, etc.
the Analyst of YOKES “ Kapital “ Pavel Shelihov considers that the scenario with write-off of actives is quite probable, cost of a net wealth has strongly decreased in comparison with the last year, hence, on balance of the company recalculation according to current market cost should be made. As “ gudvill “ it is considered in conventional world standards MSFO, it will mention both foreign, and the Russian companies which were actively buying up foreign actives before crisis. Exact volumes of write-off “ gudvilla “ it is difficult to count up, but according to an analyst, it will be faster “ paper write-offs “ in balance which will not strongly affect cash calculation.