A purchase price allocation (PPA) allocates the purchase price into assets and liabilities acquired in the transaction. Potential assets include working capital, personal and real property, and intangible assets. Our team has helped businesses conduct over a thousand PPAs in order for them to report the opening balance sheet at fair value and satisfy generally accepted accounting principles (GAAP) requirements.
We collect historical and projected financial statements, fixed-asset listings, quality-of-earnings analyses, and other data to create a complete picture of a company’s value that satisfies auditors, lenders, and investors. GAAP and the Financial Accounting Standards Board (FASB) require a timely PPA. Understanding the correct opening fair value is crucial not only for compliance purposes but also to ensure that all future accounting is accurate.