market value of Centerplus’s net assets
When Zimmer Holdings purchased the common stock of Centerplus AG, a Swiss manufacturer of medical devices, for $3.4 billion, the fair market value of the assets acquired and liabilities assumed was estimated to be $2.3 billion and $1 billion, respectively.
a. Compute the goodwill acquired in the transaction.
b. Discuss why Zimmer paid significantly more for Centerplus than was indicated by the fair market value of Centerplus’s net assets.
market value of Centerplus’s net assets