Purchase Price Allocation

Purchase Price Allocation

Mergers and Acquisitions result into several tax and/or financial reporting requirements. A Purchase Price Allocation Study is performed for both purposes to determine the fair value of assets and liabilities involved in the acquisition. A Purchase Price Allocation is required to accurately reflect a company’s worth and to give the potential investors insights on the intangible value of the company.


Intangible assets of a company can be:

    •   Patents
    •   Trademarks
    •   Technology
    •   Customer Lists
    •   Non-compete agreements
    •   Business Methodolgies
    •   In-Progress R & D


Purchase Price Allocation is a requirement for various widely recognized accounting reporting standards for financial reporting as follows:

    •   FASB ASC 350, Intangibles—Goodwill and Other
    •   FASB ASC 805, Business Combinations
    •   FASB ASC 820, Fair Value Measurements and Disclosures


ValuLink offers our clients the significant expertise and industry knowledge required for a Purchase Price Allocation. ValuLink has executed numerous Purchase Price Allocation valuation assignments for M&A transactions. ValuLink helps our clients to lay the foundation of a successful acquisition using Fair Market Value Analysis. “Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”


Need a Fair Market Value Analysis to conduct a Purchase Price Allocation? Contact Us to know more.


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