Work on purchase price allocation aim to identify and to value assets and liabilities bought within the frame of companies’ mergers.
At a normative level (IFRS 3) the calculation of the residual goodwill comes as follow:
Within that frame our missions are based on the following approach:
- Interview with the management team to better grasp the stakes of the acquisition: strategic objectives, expected synergies, impacts on competitive positioning, market shares
Should this happen the coherence of the collected pieces of information might be estimated in the light of those published by similar listed companies
- Assessment of the coherence of the paid price and the intrinsic value of the acquired company
- Identification of potentially acquired assets and liabilities
- Valuation of assets identified that way
=> Valuation studies are based on a proven methodology aiming at assessing intangible assets: DCF method, "Royalty relief approach" method, "Excess earnings approach" method
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Rationalisation of the identified residual goodwill (bringing to the fore the expected synergies as part of the operation)
- Delivery of an argued report in French and/or in English
- Should this happen, accompaniment to bring in this report to your interlocutor(auditors for instance)
