HOME TEAM SERVICES INDUSTRIES TRANSACTIONS NEWS & EVENTS CONTACT US Impairment Testing Business Valuations Complex Securities ESOP Valuations Estate and Gift Impairment Testing Portfolio Valuations Purchase Price Allocations Asset Valuations Transaction Opinions Transaction Valuations Impairment Testing The McLean Group’s Valuation Advisory practice performs goodwill impairment testing and long-lived asset impairment testing analyses in accordance with ASC 350 & 360. Our team has worked with hundreds of private-held and publicly traded companies to assist in their annual impairment tests. In addition, as noted in Account Standards Update (ASU) 350, goodwill of a reporting unit should be tested between annual tests “if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount”. Examples of such events and circumstances from ASU 350 include the following: Macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (consider in both absolute terms and relative to peers), a change in the market for an entity’s products or services, or a regulatory or political development Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows Overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation Events affecting a reporting unit such as a change in the composition or carrying amount of its net assets, a more-likely-than-not expectation of selling or disposing all, or a portion, of a reporting unit, the testing for recoverability of a significant asset group within a reporting unit, or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit If applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers). Team Leaders RYAN BERRY MANAGING DIRECTOR Business Valuation Services SCOTT SIEVERS DIRECTOR Business Valuation Services SHARI OVERSTREET MANAGING DIRECTOR M&A and Valuation (Austin) Representative Engagements Related News ABOUT MCLEAN The McLean Group is a middle-market investment bank that provides objective strategic and financial advice on mergers and acquisitions, business & asset valuation, and growth capital to middle-market clients. INDUSTRY FOCUS Defense & Government Security Critical Infrastructure Maritime IMPORTANT LINKS Our Team Transactions Sells-Side M&A Buy-Side M&A Valuations Advisory Exit Planning CONTACT DETAILS 1660 International Drive Suite 810 McLean, VA 22102 703.827.0200 info@mcleanllc.com © 2021 The McLean Group. All rights reserved. Securities transactions conducted through McLean Securities, LLC, member FINRA/SIPC