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Acquisition Differential
The gap between what is paid to buy a company and the net worth of its recognizable assets and debts.
Equity Method
A financial recording method for logging investments in subsidiary entities where the investor has considerable sway but lacks complete dominance.
Goodwill
An intangible asset that arises when a company acquires another business for a price higher than the fair value of its identifiable net assets.
Equity Method
An accounting technique used when an investor holds significant influence but not full control over an investee, allowing the investor to record a proportionate share of the investee's profits or losses.
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