As a major step after the completion of an M&A transaction, purchase price allocation (PPA) is one of the most scrutinised focus areas by auditors and ASIC, which is a reminder to the preparers of financial reports and auditors about the importance of accurate business combination accounting.
Whilst every business acquisition is unique and has different underlying value drivers, PPA outcomes in the same industry can shed some light on the common themes for the valuation of intangible assets and the resulting value allocated to goodwill that can provide a benchmark and guideline to the subject PPA.
We hope you find this report informative. Should you have any questions in relation to how PPA may impact you, please contact one of our Corporate Advisory specialists.