Analysis of the acquisition premium
Understanding the transaction and analysing the difference between the acquisition price and the net book value.
Purchase Price Allocation (PPA)
Analysis and allocation of the difference between the acquisition price and net asset value. Work carried out in accordance with applicable accounting standards and consolidation requirements.
When is a PPA necessary?
A PPA involves allocating the difference between the acquisition price and net asset value to identifiable assets and liabilities, in accordance with accounting standards.
It is required upon initial consolidation and in monitoring the value of assets.
METHODOLOGY
Our approach is based on an analysis of the assets and liabilities making up the acquisition premium, as well as compliance with applicable accounting standards.
Identification of the components of the premium
Identification of the intangible, tangible, and financial assets making up the acquisition premium and analysis of their contribution to value.
Assessment of their value
Valuation of the identified assets and analysis of their individual contribution to the company's overall value.
Compliant documentation
Preparation of a documented report in accordance with accounting standards, setting out the allocation of the acquisition premium, the determination of goodwill, and the assumptions used.
It corresponds to the difference between the price paid to acquire a company and its net book value at the acquisition date.
To allocate this premium among identifiable assets and liabilities and isolate goodwill, in accordance with consolidation standards.
The identifiable intangible, tangible, and financial assets making up the acquired company.
It corresponds to the residual portion of the acquisition premium that is not allocated to the identified assets and liabilities. Its value is monitored over time, in accordance with the arrangements set out in the applicable accounting framework.
WHAT WE OFFER
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Analysis of components
A detailed review of the components of the acquisition premium and their contribution to overall value.
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Compliance with accounting standards
Work carried out in accordance with applicable frameworks and audit requirements.
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Credibility of allocations
Documented analyses that facilitate discussions with auditors and stakeholders.
