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
