2 Healthcare Stocks At High Risk Of A Writedown
When a company makes an acquisition, the premium it pays over the acquired company's book value is called goodwill, and counts toward the acquirer's total assets. In times of duress, however, goodwill can suffer dramatic writedowns as the acquired businesses suffer material declines in their cash flows to lose their business values.
Let's take a look at two companies that arguably closed acquisitions with poor timing due to the effects of the coronavirus, and why it's best to avoid their stocks.
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Source Fool.com
