Purchase Price Allocations and Impairment
Regulations concerning the (international) annual reporting obligates you to exactly indicate for what you have paid: Purchase price allocation (PPA), after an acquisition. Additionally, after an acquisition, you are obligated to conduct an annual impairment test. These are valuation problems with which we would happily support you with. This way, you will meet requirements and you potentially gain more insight in a potential acquisition or the profitability of your enterprise.
Pre-PPA: a view on the impact to the profit per share and the balance in advance
You hit two birds with one stone if you allow us to support you to think critically about the transaction model, the assumptions it contains, and the impact of the PPA to the profit-and-loss account and the balance, during the transaction. You gain more insight in the foundation of the price and you are able to communicate well with you shareholders concerning the impact of an acquisition on your annual account and the profit per share. This way, you will prevent unpleasant surprises afterwards.
Impairment: from controlling to monitoring value
By means of an impairment test, you have to be able to show that the goodwill on the balance is still possibly earned back and that you have not over-valued the other BSIs. With impairment testing, we base our opinions on forecasted financial results. With these, we make models that offer insight in the value of your company.
We additionally eagerly help to augment these models further, in order for you to not only use them for impairment analyses, but also to gain insight in the factors that contribute to the value creation of your enterprise. With this insight, you can take adequately weighed decisions concerning, for instance, investments or whether to continue an activity or not.
This is how we help
We not only provide help to meet the requirements concerning the annual reporting, but also to augment the insights gained. To achieve this, we apply all our combined knowledge in the field of valuation, modelling and accounting. Additionally, we secure that your people will have sufficient knowledge to conduct the necessary analyses themselves in the future.