Purchase Price Allocation:
From an accounting perceptive, after the acquisition of a firm, within the scope of the consolidated balance sheet the acquisition price paid needs to be categorizes into the recognizable assets as well as liabilities. Purchase price allocation (PPA) must be done sovereignly of the applicable accounting standard; though, the requirements vary in terms of facts. The difference in the acquisition price and the sum of assets and liabilities is then acknowledged as goodwill. This implementation is a prerequisite for various widely recognized accounting reporting standards.
PPA asks for substantial resources, professional expertise and excessive experience. At ASCG, you will get proficient implementation of the PPA. We correctly classify and then value separable, recognisable intangible assets like client lists, developed technology, IPR&D, copyrights, tradenames, licensing agreements, and non-compete agreements.
It is an accounting charge that businesses record when goodwill’s carrying value on financial statements surpasses its fair value. In accounting, goodwill is recorded after a business acquires assets as well as liabilities, and pays a price in excess of their identifiable value.
Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset, and then the value of that asset declines. The difference between the amount that the company paid for the asset and the book value of the asset is known as goodwill. The company has to adjust the book value of that goodwill down if it becomes impaired.
As the universe of illiquid assets grows so grows the need for a portfolio valuation. Portfolios themselves have grown more complex, incorporating alternative asset investments among the traditional stocks, bonds and cash equivalents.
When an investment portfolio includes illiquid, non-public assets, a specialist is often needed to analyse and report the valuation of these investments for financial, investor or lender reporting.
Engaging a third party to perform portfolio level valuations, the valuation process bolsters documentation, increases independence and transparency and materially reduces measurement and reporting risks. ASCG works with private equity funds, private debt funds, hedge funds, financial institutions and investors to provide them cost-effective and defensible portfolio valuation opinions.
Complex Securities (Embedded Derivatives)
Companies progressively practice advanced deal structures to enhance the risk reward metrics in their transactions leading to increasing use of complex instruments like structured debt, earn-outs in addition to equity-based derivatives, and numerous combinations thereof.
While these instruments have emerged as a powerful tool in corporate transaction strategy, the valuation of such complex securities pose a big challenge and often has important implications. A huge variation in value of such instruments can have noteworthy influence on the business future earnings
At ASCG, our experts use sophisticated option pricing models such as black scholes, lattice and monte-carlo simulations to help clients to meet financial reporting necessities deprived of any audit hassles.
ASCG provides services regarding valuation disagreements, claims of infringement and other disputes among a variety of parties. We have deep experience ranging from advisory and consultation services to providing expert testimony. We work with legal counsel, senior and other management, and third-party specialists on litigated matters.