Valuation of Intangibles acquired in an M&A transaction
Aranca offers highly credible intangible valuation services for reporting M&A transactions under IFRS 3. We leverage our multi-disciplinary capabilities in intellectual property (IP), business research and valuation to produce defensible value opinions.
IFRS 3 standard requires companies to allocate purchase cost of business combination into various identifiable tangible as well as intangible assets at their fair value. The excess of purchase consideration over such identifiable assets is allocated to goodwill, which now needs to be tested for impairment under IAS 36 at least annually instead being amortized. CFOs find this as a significant valuation challenge.
Valuing intangibles such as technology patents, customers, trademarks, brands, non-compete agreements often require technical knowledge about IP and deep-dive understanding of businesses across technology or innovation-led industry sectors. Our team of valuation and intellectual property professionals combine their skills and knowledge and have successfully executed several hundred assignments for valuing intangible assets, both under IFRS 3 and US GAAP standards. These projects have been across diverse industry segments and of deal sizes up to $500 million.
Our insightful valuation reports go beyond documentation to bring analytical insights into the transaction. We provide highly responsive support during audit reviews to help our clients stay focused on the deal and meet their growing financial reporting responsibilities with confidence.