FINANCIAL REPORTING

Purchase Price Allocation (ASC 805)

After an acquisition, the acquirer needs to allocate the total consideration paid in the transaction to the liabilities assumed and tangible and intangible assets acquired. We can help you with calculating the fair value of the intangible assets (such as software & technology, brand name, customer list, or IP) and estimating the remaining useful life in order to amortize the purchased assets properly.

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  • Consideration calculation

    If the total consideration paid involved common stock, earnouts, and milestone payment, the Fair Value paid may be different than what you may believe. Understanding the capital structure of the buyer and the various scenarios that would result in earnouts and milestones being met would have a critical impact on the Fair Value of the total consideration.
  • Intangible identification

    Identifying the appropriate intangibles at the onset is a critical step so that you don’t overanalyze (or under allocate) the total consideration.
  • Cost effective and timely

    We have our purchase price allocation (ASC 805) process down to a science. You’ll have your draft in 7-10 business days at the lowest cost in the industry.