Allocation of Purchase Price: The Old Rules and the New FASB Proposal
August 2005 Teleconference Transcript; Panel: Matthew Crow (Moderator), Alfred King, Warren Miller, and Jim Travis ...
Court Favors MUM Method for Goodwill Allocation in Illinois Divorce Case
In divorce case, appellate court upholds valuation based on opinion of husband’s expert using MUM method to separate total goodwill value into personal and enterprise components; court also upholds use of small marketability discount where owner spouse is the sole owner of the company.
Valuing sports franchise intangible assets
How to Value Professional Sports Franchise Intangible Assets , Eric A. Thornton , Insights , Special Issue 2002, pp. 9-17, Willamette Management Associates, www.willamette.com . The Internal Re ...
Duff & Phelps on the benefits of preparing transfer pricing and purchase price allocation analyses together
According to a recent Duff & Phelps article, valuation practitioners in a business combination scenario should be aware of the hazards of preparing separate analyses ...
Acquiring companies want to know!
This article raises several interesting questions, each related to the allocation process of an acquired entity.
Revenue Procedure 2003-51 Describes Inventory Valuation Methods for Purchase Price Allocation Purposes
chase at one time. In addition, the fair market value of the (1)The Internal Revenue Service recently issued Revenue inventory goods in process and (2) finished goods inventory onProcedure 2003-51, included in 2003-29 I.R.B. 121, to expand hand should b ...
Appellate Court (Wisconsin) Affirms Trial Court Allocation of Tax Liability and Business Value in Divorce
The husband appealed the circuit court’s decision regarding his divorce decree and an order denying his motion to reconsider issues regarding the parties’ property division. He argued the circuit court erred in allocating less than half of the parties’ tax liability to the wife. He also argued the circuit court erred in denying his motion to reopen evidence regarding the impact of COVID-19 on his salon business. The appellate court rejected his arguments and affirmed the circuit court.
A Guide to Reviewing Purchase Price Allocations
Reviewing a purchase price allocation report can be a daunting task if you don't do it for a living - especially if you aren't familiar with the rules and standards governing the allocation process and the valuation methods used to determine the fair valu ...
Allocation of DLOM: to tangibles or goodwill?
I am interested in how a discount for lack of marketability (DLOM) affects goodwill. I have valued a company using various valuation methods including DCF and excess earnings. The adjusted n ...
Allocation of DLOM: to tangibles or goodwill?
I am interested in how a discount for lack of marketability (DLOM) affects goodwill. I have valued a company using various valuation methods including DCF and excess earnings. The adjusted n ...
Houlihan Lokey updates annual PPA study
Analysts at Houlihan Lokey have just released the 11th annual Purchase Price Allocation Study ...
Calculation of Costs Is Determined on a Case-by-Case Basis
The California Court of Appeals, 1st District, Division Four considered two approaches—the revenue allocation approach and the physical allocation approach—for calculating the cost of newspaper advertising space.
Pan Asia Venture Capital Corp. v. Hearst Corp., et al.
The California Court of Appeals, 1st District, Division Four considered two approaches—the revenue allocation approach and the physical allocation approach—for calculating the cost of newspaper advertising space.
In the Matter of Colorado Interstate Gas Company
At issue is the capitalization rate, the inclusion of certain intangibles and the method for allocation (original cost vs. net book or rate base).
Langdon v. Commissioner
The IRS challenged the allocation of purchase price of company to the covenant not to compete and intangible assets, and assessed additional income taxes due.
Estate of Petter v. Commissioner (I)
Tax Court upholds defined value, formula allocation clause in gift tax case.
Two sources for comparable ‘useful life’ transactions
CFOs and valuation analysts performing purchase price allocation analyses (ASC 805) need to assess the useful lives of the intangibles in the acquired company.
Sorensen v. Sorensen
Issues were valuation and distribution of husband's dental practice and allocation of expert witness fees.
PricewaterhouseCoopers valuation practice makes seamless transition to new unit of Standard & Poors
The recent acquisition of PricewaterhouseCoopers' (PwC) U.S. Corporate Value Consulting practice by the Standard & Poors division of McGraw-Hill (S&P) was the largest acquisition of a valuatio ...
Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations
Join Ray Rath for key insights on the determination of the economic and useful (amortization) lives for intangible assets. The course provides an overview of key accounting guidance pertaining to the valuation of intangible assets. A detailed focus on the estimation of an economic life for intangible assets is included. The event will also include insights on industry-specific factors impacting the valuation and economic lives of different types of intangible assets. A discussion of purchase ...
Individual’s attributes are critical for calculating personal goodwill
Distinguishing personal goodwill from enterprise goodwill can be a critical undertaking, especially for marital dissolution and allocation of purchase price for tax or financial reporting purposes.
Purchase price allocation work may not be rebounding…yet
“Business owners are slowly realizing that valuations will not return to what they were several years ago. Private equity and strategic buyers are all too aware of this and are patiently waiting for ...
Harsh ruling due to faulty value allocation in a merger
So much for professional help!
DealStats Report -Final
Sample Reports
Sample transaction report from the DealStats platform. Includes target details, transaction data, income, balance sheet, purchase price allocation, and more.
Houlihan Lokey updates its PPA study
Analysts at Houlihan Lokey have released their 2019 and 2020 Purchase Price Allocation Study, which examines key data points of purchase price allocations (PPAs) recorded by U.S. public registrants.