Valuation of Intangible Assets and Goodwill – PPA

After acquisition of the company, the price paid for the transaction has to be broken down, starting with the identifiable assets and liabilities in the consolidated balance sheet. The purchase price allocation (PPA) has to be made, regardless of the applicable accounting standards.  However, the requirements for some details are different.  The implementation of PPA requires professionals with expertise, experience and resources

BDO provides support for an efficient implementation of PPA. Our method can also help in the sustainable reduction of future impairment risk to intangible assets. In the scope of analyzing a transaction, the first step is to determine the purchase price and the acquisition date relevant to PPA. We analyze the transaction in details (including receipt clauses, as well as the ones related to sales and right of sale) and analyze its price, taking into consideration the significant provisions.

After this, intangible assets and liabilities are identified through criteria established by the applicable accounting standards and how they will be presented in future consolidated balance sheets.  With this, the fair value is determined for all assets and liabilities, already reflected or not in balance sheet.

BDO helps your company with a team of specialists experienced in valuation of trademarks, technologies and relationships with clients. 

Finally, the difference between purchase price and net fair value of assets is determined, for calculation of the goodwill.

We provide a detailed report of the valuations regarding the resulting effects of intangible assets and goodwill. Upon request, we can also provide the information you need to meet the requirements of disclosure related to a PPA.