Negative Goodwill
What Does Negative Goodwill Mean?
A gain occurring when the price paid for an acquisition is less than the fair value of its net assets.
Investopedia explains Negative Goodwill
Depending on the circumstances, this is listed as a separate line item and usually recognized as income. Negative goodwill can sometimes occur after a distressed sale. Because this type of sale almost always happens under unfavorable conditions, the seller generally receives a worse price. When the price received is less than the actual value of its net assets you have negative goodwill.
