Navigate Your Acquisition With Clear Financial Reporting
Complete your acquisition with confidence, knowing the purchase price is properly allocated and documented in a way that satisfies auditors and supports your financial statements.
Return HomeWhat This Service Delivers
When you engage us for purchase price allocation, you receive a systematic analysis that identifies and values all assets and liabilities acquired in your transaction. We allocate the purchase price in accordance with financial reporting standards, determine useful lives for amortization purposes, and prepare comprehensive documentation that supports your financial statements.
The outcome is clarity about what you acquired and confidence that your financial reporting reflects the transaction properly. You'll understand not just the allocation but the reasoning behind it, which helps you discuss the transaction knowledgeably with auditors, management, and other stakeholders.
Beyond meeting reporting requirements, this work often reveals insights about what makes the acquired business valuable. You'll see which assets contribute most to the overall worth, which can inform your integration strategy and help you focus on preserving and enhancing the most important elements of what you've acquired.
Understanding Your Situation
Completing an acquisition is often an achievement—you've identified an opportunity, negotiated terms, and closed the transaction. But then comes the work of properly accounting for what you've acquired, and this is where many organizations find themselves facing unexpected complexity.
The challenge is that you need to identify all assets and liabilities, even those not previously recognized on the seller's balance sheet. Intangible assets like customer relationships, developed technology, or trade names need to be valued. Useful lives need to be determined for amortization. And all of this needs to be documented in a way your auditors will accept.
What often holds people back is not knowing where to start or concern about the time and disruption involved. You're already managing integration challenges, and adding a complex accounting exercise can feel overwhelming. There's also sometimes uncertainty about whether you have the right information or whether the allocation will withstand auditor scrutiny.
A well-executed purchase price allocation addresses these concerns by providing a structured process managed by professionals who understand both the technical requirements and the practical realities of acquisitions. The result is documentation that satisfies your reporting requirements while giving you useful insights about your acquisition.
Our Approach to Purchase Price Allocation
We follow a systematic approach that begins with understanding the transaction and what was acquired. We review the purchase agreement, examine the acquired company's financial statements, and work with you to identify all assets and liabilities that need to be recognized.
What makes this approach effective is combining technical expertise in valuation and accounting standards with practical understanding of how acquisitions work. We know how to identify intangible assets that weren't on the balance sheet, how to value them appropriately, and how to determine useful lives that reflect their economic reality.
We manage the process collaboratively with your team and your auditors. This means discussing our approach upfront, keeping everyone informed as we progress, and addressing questions as they arise rather than waiting until the end. The goal is to avoid surprises and ensure the final allocation meets everyone's requirements.
The effectiveness of this approach shows up in smooth audit processes. Your auditors receive documentation that addresses their questions before they ask them, which saves time and reduces back-and-forth. You move forward with confidence that your financial statements properly reflect the acquisition.
What Working Together Looks Like
Transaction Review
We start by understanding the acquisition—reviewing the purchase agreement, understanding what was acquired, and identifying the key assets and operations. This helps us determine the scope of work and what information we'll need.
Asset and Liability Identification
We work with you to identify all assets and liabilities that need to be recognized, including intangible assets that may not have been on the acquired company's balance sheet. We explain what we're looking for and help you gather the necessary information.
Valuation and Allocation
We value the identified assets and liabilities, determine appropriate useful lives, and allocate the purchase price. Throughout this phase, we coordinate with your auditors to ensure our approach aligns with their expectations.
Documentation and Support
We prepare comprehensive documentation that supports the allocation and provides everything your auditors need. We remain available to answer questions and provide additional analysis if needed during the audit process.
The Investment
Comprehensive Purchase Price Allocation
This investment reflects the specialized work required to properly allocate purchase price in accordance with financial reporting standards. The value extends beyond satisfying audit requirements—you gain insight into what makes the acquisition valuable, which can inform your integration strategy and help you preserve the most important elements of what you've acquired.
Many acquirers find that the purchase price allocation process helps them understand their acquisition more deeply. It reveals which assets drive value and which might need additional attention during integration.
How We Measure Effectiveness
The effectiveness of a purchase price allocation is measured primarily by how smoothly your audit process goes. If we've done our work well, your auditors receive documentation that addresses their requirements comprehensively, questions are minimal, and the allocation is accepted without significant revision.
We measure our work by whether the allocation satisfies auditor requirements on the first submission and whether you feel confident discussing the allocation with management, auditors, and other stakeholders. Our approach is designed to minimize back-and-forth and avoid surprises during the audit.
The typical timeline for a purchase price allocation is between five and eight weeks from engagement to final documentation. This depends on the complexity of the acquisition, how quickly information can be gathered, and the level of coordination required with your auditors. We work to accommodate your reporting deadlines.
What you can realistically expect is a thorough allocation that meets financial reporting standards, comprehensive documentation that supports your financial statements, and a collaborative process that keeps all parties informed and aligned.
Working With Confidence
We stand behind the quality of our work and its alignment with financial reporting standards. If questions arise during the audit process, we're available to discuss them with your auditors and provide additional support as needed. Our goal is for the allocation to be accepted smoothly.
Before you engage us, we encourage a conversation where we can understand the specifics of your acquisition and your reporting timeline. This helps us determine whether we can meet your needs and allows you to assess whether our approach is right for your situation.
We recognize that purchase price allocation often needs to happen while you're managing multiple other aspects of an acquisition. Part of our value is making this process as efficient as possible, minimizing the demands on your time while ensuring thorough documentation.
Many clients tell us that one of the most valuable aspects of working with us is the peace of mind. They know the allocation is being handled properly and that they'll have documentation their auditors will accept, which lets them focus on other aspects of making the acquisition successful.
Getting Started
1. Initial Contact
Reach out through the form below or email us at [email protected]. Share information about the acquisition, your reporting timeline, and any specific considerations. We'll respond promptly to discuss how we can help.
2. Transaction Discussion
We'll schedule a conversation to understand the acquisition details, review the purchase agreement if available, and discuss the scope of work. We'll also coordinate with your auditors early to align on approach and requirements.
3. Engagement and Timeline
We'll formalize the engagement with a clear scope, timeline, and deliverables. You'll know what to expect at each stage, what information we'll need from you, and how we'll coordinate with your auditors.
4. Collaborative Process
Throughout the engagement, we maintain regular communication with you and your auditors. We keep everyone informed about progress, address questions promptly, and ensure the process moves forward efficiently.
Ready to Complete Your Acquisition Accounting?
Let's discuss how we can help you allocate purchase price properly and prepare documentation that satisfies your auditors. We're here to make this process as smooth as possible.
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