Importance The article continues a series of publications dedicated to the exploration of major integration deals with participation of Russian companies, focusing on manufacturing industry being the most important economic sector. Earlier studies identified and analyzed 60 largest deals of 2008–2013 with the participation of Russian industrial enterprises where goodwill was reported in buyers' financial statements. This article investigates the results of subsequent annual test of the recognized goodwill for impairment. Objectives The purpose of the study is to reveal whether it was feasible for Russian industrial enterprises to acquire business at the price exceeding its fair value and report goodwill. Methods I reviewed the financial statements of industrial groups, which were analyzed at the previous stage, from the perspective of impairment of acquired goodwill. Results The paper shows changes in disclosure of goodwill recognized in major M&A deals over 2008–2013 with the participation of Russian industrial enterprises; analyzes the feasibility of synergistic optimism of investors; reveals the moments of the highest risk of recognizing the impairment of goodwill in financial statements; compares the rationale for overpayment for goodwill with its subsequent write-off when impaired. Relevance The article may be useful for all those interested in integration processes in the Russian industry as unique statistical data.
Keywords: mergers and acquisitions, M&A, synergy, goodwill, business reputation
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