PURCHASE PRICE ALLOCATION
A purchase price allocation will take place following a successful Merger&Acquisition process between two companies. As per regulation the acquired assets and liabilities need to be reported at fair value as to make an estimate of the goodwill. Part thereof is a valuation of the tangible fixed assets.
The Valuation Company is familiar with the usual accounting principles under the Richtlijn Jaarrekening under Dutch GAAP (“RJ”), International Financial Reporting Standards (“IFRS”) and US GAAP.
IDENTIFICATIon and allocation
In a purchase price allocation, it is relevant to value the tangible fixed assets, since this can lead to a stronger balance sheet. Hidden reserves in historically acquired land or fully depreciated assets are made visible. This results in a lower goodwill amount and thus any impairment risk going forward. In addition to the fair value valuation, The Valuation Company also provides documentation that will assist in the post-deal integration and support in the audit process.
Part of a purchase price allocation are intangible assets such as the brandname, technology, contract etc. Together with partnering advisory firms, The Valuation Company can provide a complete purchase price allocation to her clients. We can also provide an independent tangible fixed asset valuation as part of a purchase price allocation for other advisory firms.