Purchase price allocation

Purchase price allocation

Client needs

  • Comply with the requirement to identify and measure at fair value assets and liabilities acquired in a business combination

Our strengths

  • Internal competence centres specialised in regulated financial information and valuations
  • Experience of IFRSs and extensive knowledge of AMF policy
  • Expertise in business valuations, modelling and financial valuations (proficiency in applying the Black & Scholes, binomial and Monte Carlo methods etc.)

Solutions / services

  • Purchase price allocation
  • Critical review and advisory services related to a purchase price allocation
  • Presentation of the accounting consequences of the purchase price allocation

Approach / methodology

  • Meetings with the target company’s senior management in order to:
    a. Obtain insight into the activities and strategy of the business
    b. Gain a clear grasp of the relevant transaction
    c. Identify the assets and liabilities (brands, know-how, pensions, etc.) likely to be measured at fair value
  • Multi-criterion valuation approach complying with the requirements of the applicable accounting standards and appropriate to the nature of the assets and liabilities
  • Determination or validation of the discount rate to be applied
  • Independent business review
  • Drafting of a detailed report and appropriate documentation for the attention of the client and its external auditors where necessary

Sample assignments

  • Critical review of purchase price allocation for a listed company active in the IT solutions sector
  • Assistance with purchase price allocation for a company operating in the textiles sector
  • IFRS-compliant valuation of a client relationship for a service company