First, we need to get the book value of all assets on the target’ balance sheet, which includes current assets, non-current assets, fixed assets, and intangible assets. These figures can be gotten from the company’s most recent set of financial statements. Secondly, an accountant can determine the fair value of the assets. This process is somewhat very subjective, but an accounting firm will be able to perform the necessary analysis needed to justify a fair current market value of each asset. The adjustments can be made by taking the difference between the fair value and the book value of each asset. Thirdly, the Excess Purchase Price can be calculated by taking the difference between the actual purchase price which is paid to acquire the target company and the Net Book Value of the company’s asset. With all of the above figures that have been calculated, the last step has to be about taking the Excess Purchase Price and deducting the Fair Value Adjustments done. The resulting figure will be the Goodwill that will go to the acquirer’s balance sheet.