Purchase price allocation describes the process of allocating a purchase price between the various assets and liabilities acquired in an acquisition. For example, if a company acquires another business for $100 million in cash, but only receives $80 million in cash from the seller, then it has to allocate the remaining $20 million between accounts receivable and other current assets that were acquired. The objective of purchase price allocation is to determine what portion of the purchase price should be allocated to each identifiable intangible asset or financial liability on the balance sheet.
All business valuation
Valuation of privately held businesses is one of our core competencies. Our professionals have extensive experience valuing businesses ranging from small enterprises to large corporations with multi-billion dollar revenues. Our valuation experts can provide you with a comprehensive analysis of your company’s value based on its historical financial performance as well as its future prospects. We utilize a variety of techniques including discounted cash flow analysis, comparable transaction analysis and multiples based on industry benchmarks to arrive at our valuation conclusions.
Company Valuation Share
We offer two types of valuations: Fair Market Value (FMV) and Discounted Cash Flow (DCF). If a company is going through an acquisition process or looking for financing then we recommend
Purchase Price Allocation is the process of determining the cost basis of each asset acquired in a business or asset purchase. Tax laws require that the purchase price be allocated to the various assets being acquired in order for you to determine your tax liability.
In most cases, this process will involve an appraisal by a CPA or other qualified professional. Our firm offers both quick and complete solutions for all of your Purchase Price Allocation needs. We will work with you to determine an accurate fair market value for each asset and allocate the purchase price accordingly.
In addition to helping you determine how much you should pay for an asset, we can also help with:
Corporate Valuation Services – Our team provides sophisticated valuation services for all types of businesses, including small businesses, corporations, limited liability companies and partnerships. We can help you determine what your business is worth when it comes time to sell or buy another business.
Intangibles Valuation –
Intangibles are those assets which cannot be seen or touched but are still valuable – such as patents, copyrights and trademarks. Our firm can help you determine the value of these types of assets so that they can be sold or licensed properly without violating any laws governing intellectual property rights.
Startup Valuation – Startup companies
Purchase Price Allocation (PP&A)
The first step in valuing any company is to understand its financial statements. The more you know about the company’s financial statements, the better you will be at understanding the business and its valuation.
Analysis of the business
Once you have completed a thorough analysis of the business, it is time to value the business. This is where we come in! We will help you value your company based on the facts and figures provided by you. There are many ways that can be used to value a company, but we prefer using the purchase price allocation (PP&A) method because it provides a reasonable estimate of what an investor would pay for your company.
Purchase Price Allocation Method (PP&A)
The PP&A method is a widely accepted technique used by many businesses to value their assets when they are sold out or merged with other businesses. It is also used by businesses when they want to merge with another company or when they want to buy another company’s assets or stock shares. The PP&A method helps in determining how much each asset contributed towards the overall success of a business and thus gives an idea about how much each asset should be valued at if it were sold separately from other assets.
The PP
Purchase Price Allocation (PPA) is the process of valuing the assets and liabilities of a company. The PPA is used in business valuation, private equity, ESOPs and mergers and acquisitions.
In business valuation, the purchase price allocation (PPA) is a comprehensive analysis of a company’s assets and liabilities. The aim of the PPA is to determine the fair market value of a company’s assets and liabilities based on their respective fair market values.
The result of the purchase price allocation process is used to calculate the net asset value (NAV) or net tangible book value (NTBV) of a company.
In private equity transactions such as leveraged buyouts (LBOs), venture capital investments or buy-and-build strategies, it allows investors to accurately value their investments and assess their returns.
