Creating transparency - allocating values correctly

In corporate transactions, a precise and comprehensible purchase price allocation is crucial - both for the annual financial statements and for tax and accounting purposes. We support our clients in allocating the purchase price to acquired assets and liabilities in a structured manner - legally compliant, economically sound and with a clear view of commercial and tax law requirements.

Scope and informational basis

  • Scope: Transactions in which control is gained or rearranged over one or more business units
  • Informational basis: particularly the sales and purchase agreement, annual financial statements for the past financial years, reports from financial due diligence, business planning of target

The typical process

  • Understanding the transaction
    - Analyse the background to the transaction (reasons, structure, etc.)
    - Determine the acquisition date
    - Calculate the acquisition costs (consideration transferred)
  • (Re)calculate the acquired assets and liabilities
    - Identify assets and liabilities (esp. assets as yet not recognised)
    - Derive fair values of the acquired assets and liabilities
    - Determine deferred taxes
  • Calculate goodwill and analyse effects on the balance sheet and statement of financial position
    - Calculate goodwill
    - Analyse effects on the balance sheet and statement of financial position
    - Follow-up accounting (impairment test)