Results for tag: "Purchase Price Allocation"

Purchase Price Allocation (PPA) is a process used in accounting to allocate the purchase price of an acquisition to the assets and liabilities of the acquired company. It is used to determine the fair value of the assets and liabilities of the acquired company, which is then used to calculate the goodwill of the acquisition. PPA is an important part of the accounting process for mergers and acquisitions, as it helps to ensure that the purchase price is allocated correctly and fairly. PPA is typically performed by a third-party valuation firm, which uses a variety of methods to determine the fair value of the assets and liabilities of the acquired company. These methods include market analysis, discounted cash flow analysis, and other financial modeling techniques. The valuation firm then prepares a report that outlines the fair value of the assets and liabilities of the acquired company. Companies that provide PPA services include Duff & Phelps, Alvarez & Marsal, KPMG, Deloitte, and Ernst & Young. Show Less Read more