Goodwill

The premium paid in an acquisition above the fair value of net assets.

Goodwill is an intangible asset recorded when one company buys another for more than the fair value of its identifiable net assets, reflecting brand, relationships, and synergies. It is not amortized but tested for impairment, and large write-downs can signal an overpriced deal.

Most of the acquisition price became goodwill, the premium paid above the target's net assets.