Purchase Price Allocations

Allocation of consideration across identifiable assets, liabilities and goodwill, compliant with IFRS and US GAAP.

Overview

A post-acquisition exercise that allocates the purchase price across identifiable assets, liabilities, and goodwill in compliance with IFRS and US GAAP. We ensure accurate financial reporting and regulatory compliance following business combinations. We help clients avoid restatement risks and support auditors with robust, well-documented allocation reports.

Our Approach

We identify the assets and liabilities acquired, including intangibles that were not previously recognised on the target’s balance sheet, and value each on the basis appropriate to its nature. Useful lives and amortisation profiles are supported by evidence rather than convention. The allocation is documented so the audit trail from consideration paid to recognised balances is complete.

Typically Identified Intangibles

Allocations frequently recognise:

•Customer relationships and contracts
•Brands and trade names
•Technology and know-how
•Patents, licences and permits
•Non-compete agreements
•Order backlog

Reporting and Audit

Purchase price allocation is an area of close audit and regulatory attention, and restatement is costly. Our reports are prepared to be handed directly to auditors, with methodology, inputs, and sensitivities set out in the detail that review requires.

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