Global BV News: Pretransaction PPAs increasing in GCC region, says Deloitte report

BVWireIssue #214-4
July 29, 2020

global business valuation
purchase price allocation, intangible assets, international business valuation

The growing importance of intangible assets has triggered an increased number of stakeholders from within the Gulf Cooperation Council (GCC) requesting a pretransaction purchase price allocation analysis, according to a new report from Deloitte Middle East in collaboration with the Saudi Authority for Accredited Valuers (TAQEEM). “That is a clear indication that investors are interested to know beforehand what they are paying for and in understanding the value of the intangibles in their target companies,” Mohammad Araj, director, financial advisory, Deloitte Middle East and accredited member of TAQEEM, says in the report. “This would provide a justification for any premium paid over and above the proposed purchase price.” The report, “The Future of Intangible Assets in the Kingdom of Saudi Arabia,” focuses on intangible assets and their increasing contribution toward the value composition of businesses whether measured in terms of market capitalization or as part of premiums paid over net tangible assets. To download the report, click here
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