Purchase Price Allocations
When a business or businesses are acquired, buyers need to produce an independent financial valuation report to ensure reasonable and supportable purchase price allocations.
evcValuation provides purchase price allocation valuation services for clients needing financial reporting valuation reports that meet US GAAP based financial statements requirements during a merger or acquisition—as established by ASC 805 (Accounting Standards Codification Topic 805, formerly SFAS 141). The requirement is fulfilled by a financial reporting valuation known as a purchase price allocation, or PPA, that our evcValuation team can perform following a company principal’s request.
In asset transactions, PPAs also require federal tax reporting valuations to comply with IRS regulations. Sections 1060 and 338 of the Internal Revenue Code detail procedures for completing valuations for U.S. tax reporting purposes. evcValuation can assist in the allocation of purchase price and recommend values to support a taxpayer’s representation to the Internal Revenue Service when filing its return.
evcValuation has worked on an extensive range of purchase price allocation valuation scenarios to include single plant and portfolio transactions.
Our comprehensive approach to purchase price allocation valuation includes identifying both tangible and intangible value. While we focus on the purchase price allocation obligations aspect of a transaction, we are also aware of the implications relating to property tax assessments.
“Every business entity is unique and brings a unique set of equities for a transaction. We delve deep into the data to analyze and report supportable valuations so that our results can be used with confidence when reporting to auditors and various regulatory bodies.”
– Clayton Baumann, PE, CCP, ASA
Our purchase price allocation valuation services cover many more aspects of the transaction process, including current and future market outlook, valuation approaches for specific industries and other factors that can influence company value. From small company to large enterprise transactions, evcValuation brings the necessary knowledge and experience to support your financial valuation needs.