Purchase Price Allocation
The purchase price of an acquisition is allocated to the identifiable assets acquired and liabilities assumed at fair values.
Purchase price allocation (PPA) is the process of allocating purchase price and goodwill to reporting units/cash generating units(CGU). According to IFRS 3, the acquiring company is required to measure the fair values of identifiable assets and liabilities of the target company as of date of acquisition (including those not reflected on the balance sheet of the acquired company). The difference between the consideration and identifiable net assets is goodwill.
What we can help you
- Determining the fair value of consideration in the acquisition
- Identifying intangible assets and estimating their amortization life
- Assessing the fair value of identifiable assets in the acquisition, including intangible assets and tangible assets
- Valuing contingent assets and liabilities
- Calculating the goodwill arising in a business combination
- Analysing the impact of the above calculation on the financial statements of the company
We have rich practical experience in helping clients to assess the value of various types of intangible assets. As a leading independent valuation firm, Pretium Advisory assists clients by providing detailed, transparent and credible valuations. If you need any assistance, please contact us.