After a deal has completed, it is typically necessary (for example under IFRS 3 Business Combinations and FRS 102) for the acquiring company to perform what is called a ‘Purchase Price Allocation’ exercise, or PPA. The purpose of a PPA is to assess the fair value of acquired tangible and intangible assets, along with the acquired liabilities, which are then presented in the combined post-acquisition balance sheet.
There are a number of steps necessary to perform a PPA as outlined below. The Buzzacott team are experienced in performing valuations across each stage of the process and working with our clients to manage the process overall.
We work closely with our clients’ audit firms – of all sizes – to ensure that the PPA process runs as smoothly as possible for our clients and achieves the optimal outcome for all key stakeholders in the combined entity.
A PPA exercise may also be performed ahead of deal completion in order to highlight the potential accounting impact of any deal, and may form part of a wider due diligence process.
The Buzzacott Valuations team have extensive experience in the performance of intangible asset valuations, both within the context of a PPA and for other reasons such as tax. Assets which members of the team have performed valuations of previously include the following:
As a team we are proficient in the use of a full suite of valuation approaches specific to intangible assets and intellectual property.
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