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)
