Purchase Price Allocation

Has your firm recently acquired a new business and (in)tangible assets, or was your firm the target in a merger? Then most likely you are required to perform a purchase price allocation.

Post purchase, companies are obligated to be transparent to the board, shareholders, and market and communicate the value of the assets acquired. The company’s accountant often requires an independent, fair, and unbiased determination of the Fair Value for Purchase Price Allocation. Specific assets of the target should be identified and valued, as per transaction date, using industry acknowledged valuation techniques and methodologies. Additionally, as part of a Purchase Price Allocation is the determination of the (any applicable) goodwill.

Performing a Purchase Price Allocation will allow your firm to consolidate the target on your balance sheet.

The Valuation Company has extensive experiences with (tangible) asset valuations for Purchase Price Allocations. Our valuation techniques and methodologies are in accordance with industry accepted standards:

  • Sales Comparison Approach

  • Cost Approach

  • Income Approach

Aside from the identification of the acquired assets and the allocation of the price paid, our independent report serves as supportive documentation for auditing purposes. Our valuation is solid and defensible based on our consideration of the highest-and-best use of the assets, acknowledged theories and methodologies, step-up determination, analysis of depreciation standards, and remaining useful life estimation.