Valuation of intangible assets and the purchase price allocation process
Purchase price allocation is typically needed in the execution and integration stages of a transaction. It can be done during the financial due diligence phase to give an indication of assets, including intangible assets, and liabilities likely to be acquired, together with their likely impact on future earnings. It can then be formalised after completion of the transaction. This involves discussions with the company’s auditors to ensure that all financial impacts are quantified and agreed prior to the relevant review or audit date.
We can assist clients by:
- Providing support to the acquisition decision making process through an indicative analysis based on available information and comparable transactions in the industry
- Identification of intangible assets acquired as part of a business combination under both accounting and taxation frameworks
- Performing a purchase price allocation exercise based on assets and liabilities acquired as part of a business combination
- Provide advice on the annual impairment process as part of general financial reporting requirements
- Valuations of tech, brands, data and other IP.
We have a dedicated team with expert knowledge in valuation, tax and accounting disciplines which offer advice on the purchase price allocation process and the identification and valuation of various intangible assets.