Valuation of Intangible Assets and Goodwill in Business Combinations
The Valuation Group provides purchase price allocation support for acquisitions, business combinations, ownership transactions, and financial reporting matters involving tangible assets, identifiable intangible assets, assumed liabilities, and goodwill.
Our work supports CFOs, controllers, auditors, CPA firms, attorneys, buyers, sellers, investors, boards, and advisory teams that need documented valuation analysis after a transaction.
Why The Valuation Group
Purchase price allocation assignments require valuation judgment across multiple asset classes. The analysis may involve customer relationships, trade names, developed technology, non-compete agreements, assembled workforce considerations, favorable or unfavorable contracts, contingent consideration, tangible assets, assumed liabilities, and residual goodwill.
Our purchase price allocation work translates transaction economics into supportable value conclusions for identifiable intangible assets, tangible assets, contingent consideration, assumed liabilities, and goodwill.
We value identifiable intangible assets acquired in business combinations, including customer relationships, trade names, trademarks, developed technology, proprietary processes, licensing rights, non-compete agreements, contract rights, and other intangible assets.
Our analysis considers the economic benefit of the asset, expected useful life, risk, market position, remaining contractual or legal rights, and the income or cost savings attributable to the asset.
Purchase price allocation work often requires distinguishing identifiable intangible assets from goodwill. We analyze the transaction, the acquired business, expected cash flow, identifiable assets, assumed liabilities, and residual value attributable to goodwill.
Our work assists management and advisors in documenting how transaction value is allocated among acquired assets and assumed liabilities.
Acquisitions may include earn-outs, milestone payments, performance-based consideration, seller notes, or other contingent obligations. The Valuation Group provides valuation support for transaction-related contingent consideration where the expected amount, timing, probability, and risk of future payments must be analyzed.
Purchase price allocation may involve analysis of tangible assets, inventory, working capital, equipment, real estate-related assets, and other acquired assets or assumed liabilities affecting the allocation.
We work with the financial records, transaction documents, schedules, and supporting materials needed to evaluate the components of the acquisition.
Related Valuation Issues
ASC 350 Goodwill & Intangible Asset Impairment
Goodwill and indefinite-lived intangible assets may require subsequent impairment analysisafter the acquisition.
ASC 820 Fair Value Measurement Support
Fair value measurement issues may arise in acquisition accounting, contingent consideration, equity interests, or other assets and liabilities.Contingent Consideration & Earn-out Valuation
Earn-outs and performance-basedpayment obligations may require separate
valuation analysis.
