At MBG Corporate Services, we understand that acquisitions and mergers mark significant milestones in a company’s growth journey. However, ensuring that these transactions are accurately reflected in financial statements requires meticulous attention to detail and compliance with accounting standards. This is where our Purchase Price Allocation service comes into play. With our expertise and precision, we provide comprehensive solutions tailored to allocate the purchase price of acquired assets and liabilities efficiently.
Factors consider:
- Identification and Valuation of Intangible Assets: MBG identifies and accurately values intangible assets such as customer relationships, trademarks, patents, and non-compete agreements to ensure a comprehensive allocation of the purchase price.
- Valuation of Tangible Assets: MBG values tangible assets like land, buildings, and plant and machinery to complete the allocation of the purchase price.
- Goodwill Allocation: The difference between the purchase consideration and the fair value of the tangible and intangible assets is allocated to goodwill, which is then subject to impairment assessment.
- Alignment of Accounting Principles: MBG ensures that the financial statements of the acquired company are aligned with the accounting principles of the acquirer, considering the possibility of different accounting standards such as Dutch GAAP (RJ) and IFRS.
- Fair Value Adjustments: MBG considers fair value adjustments, which may be necessary due to differences in the accounting principles used by the acquired company and the acquirer.
- Write-Downs and Write-Offs: MBG assesses the need for write-downs or write-offs of assets to their fair value, which can result in a reduction of the purchase price allocated to those assets.
- Acquisition-Related Costs: MBG excludes acquisition-related costs such as legal, advisory, or consulting fees from the purchase price allocation, as these costs are expensed separately according to accounting standards.
- Cross-Border Considerations: MBG collaborates with leading valuation firms globally to provide seamless cross-border services, ensuring that the purchase price allocation is accurate and compliant with local accounting standards.
