Purchase Price Allocation (PPA) Valuation (ASC 805)

Audit-ready Purchase Price Allocation valuation services for M&A transactions

Aranca has extensive cross-industry experience of providing clients with Purchase Price Allocation (PPA) for ASC 805 | FAS 141R ‘Business Combinations’ compliance reports by providing high quality, auditable and cost-effective independent valuation services. Our comprehensive USPAP compliant appraisal reports coupled with our highly responsive support during audit reviews, help our clients stay focused on the deal.

How does ASC 805 impact you?

ASC 805 (formerly SFAS 141R) poses significant challenges to companies in financial reporting for acquisition transactions. Companies that have recently completed an acquisition or merger transaction confront complex provisions of ASC 805 for fair value reporting. The standard requires companies to allocate the purchase consideration paid in M&A transaction into various tangible and intangible assets at their fair value. While the primary driver behind purchase price allocation (PPA) is to bring more transparency to reporting of acquisitions, understanding and application of accounting pronouncements relating to valuation of intangible assets can be highly complex and time consuming process.

Purchase price allocation involves identification and valuation of various intangible assets acquired in a transaction that can include patented and unpatented technology, IPR&D projects, customer relationships, trademarks, brand names, non-compete agreements, others. Valuation of intangible assets requires significant expertise in multiple disciplines including Intellectual Property as well as deep understanding of industry sectors.

How can Aranca help?

Aranca has hands-on understanding of provisions of ASC 805 | FAS 141R and has successfully executed hundreds of Purchase Price Allocation valuation assignments for M&A transactions. We provide auditable, high quality and cost effective independent valuation services. Having executed valuation assignments for diverse industries including semiconductor, IT (hardware & software), biotechnology, healthcare, online advertising, social media, ecommerce and other internet based businesses, our expertise helps companies sail through stringent audit reviews. In addition, our complimentary capabilities in intellectual property research and business research combined with our strong credentials in business valuation; uniquely position us to provide you high quality services in intangibles valuation.

Get Insights and Audit Support, Not Just Documentation

Our comprehensive appraisal reports go beyond mere documentation and bring analytical insights into the transaction to help our clients meet their growing financial reporting responsibilities with confidence. We have extensive experience in managing audit reviews, including by the big four, which helps quickly resolve auditor queries relating to a valuation assumption or methodology, so that you don’t risk embarrassment of potential misstatements or reporting delays.

Get objective, independent and defensible valuations
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Purchase Price Allocation (ASC805
“Based on my past experience of working with a number of valuation firms, it has been a real pleasure working with you and your team. You were all very professional, thoughtful and thorough."
- CFO, Online Retailer