M&A support
Advice on accounting for business acquisitions (PPAs): Identifying the goodwill / badwill of the transaction;
PPA (Purchase Price Allocation) is the goodwill accounting process by which one company (the acquirer), on acquiring another company (the target), allocates the purchase price to the various assets and liabilities acquired in the transaction. According to the accounting guidelines of IFRS 3, mandatory in any business acquisition process.
Purpose:
Support in the integration of a business combination. Distribution of the price paid in the corporate transaction.
Phases of the process:
- Description of the operation
- Diagnosis and detection of assets and liabilities (tangible and intangible)
- Determination of the Fair Value of the tangible and intangible assets identified in the operation. Assignment of useful lives.
- Checks (top down- bottom up by CGUs)
- Determination of goodwill.
Methodology:
Implementation of IFRS 3 and subsidiaries (IFRS 13, IAS 2, 16 and 38). General Chart of Accounts (GCA), IFRS or USGAAP basis.
Purposes:
Determine the goodwill of the business or part of it, as agreed between the company and the auditor.
Derivative services:
Impairment test of fixed assets, intangible assets and goodwill in accordance with IAS 36.
Financial due diligence.