When businesses merge or acquire one another, it is crucial to accurately allocate the purchase price among the acquired assets and liabilities. Our expert team possesses the necessary expertise and experience to assist clients in navigating the complexities of purchase price allocation.
During a business combination, it is essential to determine the fair value of identifiable assets, including tangible assets such as property, plant, and equipment, as well as intangible assets like patents, trademarks, customer relationships, and brand value. Additionally, the valuation assignment encompasses the assessment of liabilities assumed in the transaction, including outstanding debt, contractual obligations, and contingent liabilities.
Discover how ASA explain the concepts and nuances of business valuation so that the client could pursue new deals and unlock growth.
Our Capabilities
Our team has vast experience in a diversified portfolio of clients in which the industries they engaged include IT & IoT, electronic payment and transaction processing, natural resources including mining and renewable energy, catering, entertainment including gaming and casino, textile and apparel, financial and consumer financing
As the American Society of Appraisers (ASA) accredited valuer, our team provide valuable assistance to your company in the process of valuation. Our experience, expertise and insights can support you in several key areas:
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Our thorough approach, combined with the unique combination of Certified Public Accountant (CPA) and Accredited Senior Appraiser (ASA) experience on our team, ensures that your Purchase Price Allocation (PPA) adheres to the specific accounting regulations in your jurisdiction, including the requirements imposed by the International Financial Reporting Standards (IFRS). Our team's CPA expertise provides a deep understanding of accounting principles and financial reporting, while our ASA professionals bring specialized knowledge in the valuation of business assets and intangible assets. This powerful combination allows us to navigate the complexities of PPA with precision and accuracy.
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By virtue of IFRS 3 Business Combinations, the identification and valuation of intangible assets play a crucial role in the purchase price allocation process. Intangible assets are non-physical assets that lack a physical substance but hold value for the acquiring company. Examples of intangible assets include intellectual property, customer relationships, brand names, patents, and technology.
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IFRS 3 requires careful consideration in identifying and valuing intangible assets. The standard provides guidance on recognizing and measuring identifiable intangible assets acquired in a business combination. It emphasizes that an intangible asset should be recognized separately if it meets specific criteria, such as being separable or arising from contractual or legal rights. Additionally, IFRS 3 requires that intangible assets be measured at fair value, which involves estimating the value based on market data, income projections, or other appropriate valuation techniques.
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Our team, with its CPA and ASA backgrounds, is well-versed in these IFRS requirements and will ensure that your PPA accurately identifies and values intangible assets in accordance with the standard. By leveraging our expertise, you can be confident that your financial statements will accurately reflect the fair value of acquired assets, provide transparency to stakeholders, and comply with the applicable accounting standards, including the specific requirements imposed by IFRS.
Partner with us for your PPA needs, and let our experienced CPA and ASA team support you in making informed decisions and achieving financial reporting excellence
Independent Perspective
Our independent perspective brings objectivity and thus creditability to the acquisition process on both sides of the table. We provide an unbiased assessment of the target company's value, strengths, weaknesses, and growth potential. This objective viewpoint helps you evaluate the acquisition opportunity critically and make well-informed decisions.