After a business combination, U.S. GAAP generally requires the acquirer to recognize identifiable assets acquired and liabilities assumed at their acquisition-date fair values under ASC 805. Purchase price allocation (PPA) work helps management determine the amounts to recognize and document the analysis for financial reporting. The specific recognition and measurement requirements depend on the transaction and applicable accounting guidance.

Brookline Valuation Services, Inc. prepares valuation analyses for acquired intangible assets and coordinates with qualified machinery, equipment and real-estate appraisers when those assets are part of the assignment. Depending on the transaction, intangible assets may include customer relationships, technology or software, trade names, patents, noncompetition agreements, backlog and contractual rights.

ASC 805 Purchase Price Allocation Services

• Review of transaction documents, financial information and relevant acquisition-date facts
• Identification and valuation of acquired intangible assets, as applicable
• Coordination of tangible-asset valuation specialists for an integrated allocation
• Documentation of valuation methods, assumptions, inputs and conclusions
• Coordination with management and auditors during the financial-reporting process

Our scope is tailored to the transaction, valuation date and reporting needs. We work with management and its accounting advisers to understand the business combination, capital structure, acquired assets and assumed obligations. The resulting analysis supports the allocation of consideration among the assets and liabilities recognized in the transaction.

Brookline Valuation Services also provides goodwill impairment valuation support. Mark Shifrin, ASA, has focused on business valuation since 2007 and brings more than 25 years of valuation experience.

To discuss an ASC 805 purchase price allocation, contact Brookline Valuation Services through our contact page, call 617-308-0450 or email mshifrin@brooklinevaluation.com.