Purchase Price Allocation (PPA) exercises are among the most common valuation processes following the acquisition of control of a business.
A PPA allocates the purchase price paid in an acquisition among the identifiable assets acquired and liabilities assumed, including the identification and valuation of intangible assets, and determines the resulting goodwill. This analysis is an important part of acquisition accounting under the applicable accounting standards, such as IFRS 3 – Business Combinations or Spanish GAAP (NRV 19 – Business Combinations).
In the attached document, we address some of the most frequently asked questions about Purchase Price Allocations (PPAs), including when a PPA is required, the timeframe for completing it, the main stages of the process, and other key considerations throughout the project.
The MKD Advisors team has extensive experience in Purchase Price Allocations and intangible asset valuations, both advising companies in the preparation of their PPAs and working alongside audit teams during the review of valuations and purchase price allocation exercises.
If you would like to discuss the specific circumstances of a transaction or require support with the preparation or review of a PPA, please contact us at info@mkd-advisors.com or through the contact form on our website.
