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Purchase price allocation
Providing credible and comprehensive purchase price allocation support
Transactions are becoming more complex with rising capital markets and sophisticated transaction structures, along with new considerations driven by recent tax and regulatory changes. While purchase price allocations were once primarily driven by compliance with financial reporting or tax reporting standards, buyers and sellers are becoming increasingly aware of the pre- and post-deal effects of asset and liability valuation, including items like potential tax savings that can influence the negotiation.
RSM understands purchase price allocations are no longer about meeting the basic requirements of financial statements or a tax return. We seek to understand how the results of our analyses affect your business—whether you are the buyer or the seller—and commit to clear and open communication from initial conversations through delivery of final work products. With our comprehensive approach, we can go beyond the numbers and deliver value to you and your stakeholders.
Your RSM advisors have significant industry and technical experience to cut through the complexity for both domestic and cross-border transactions. Further, when required by local standards, we can collaborate with RSM International’s valuation professionals to meet your needs domestically and abroad. Without the proper perspective and effective communication, acquired assets and assumed liabilities can be overvalued, undervalued or missed entirely.
A hands-on, inclusive approach
RSM advisors have established a consistent process that results in accurate valuations of your assets and liabilities for financial reporting and tax purposes, including:
- Defining scope: Before you even engage RSM, your engagement team will gather information and clearly define the acquired assets, assumed liabilities, and when applicable, the legal entities that own the assets as part of determining the scope. This process concludes with a detailed scoping overview to share with all stakeholders, including your independent auditors to map a clear engagement outline and avoid unexpected surprises.
- Detailing our methodology: Soon after engagement and management interviews, your engagement team will provide a detailed memo that outlines the intended outcomes of the engagement, including the acquired assets and assumed liabilities to be valued, planned methodologies and key assumptions. This memo and review by your independent auditors are critical to a successful engagement to establish clear and open communication driving shared perspectives and expectations regarding the development of the valuation.
- Analysis and review: Your engagement team is supported by a group of valuation professionals focused on maintaining current best practices in purchase price allocation valuations. The team also has access to the latest accounting industry and technical updates as well as insight into valuations performed by other leading valuation firms through our role in assisting our audit clients.
This framework creates an environment where the expectations of the valuation and related reports are communicated and understood throughout the project. Ultimately, this allows us to deliver a final report that helps to demonstrate a fair and defensible value of the acquired assets and assumed liabilities.
Our proven purchase price allocation process provides unbiased insights to increase transparency surrounding the valuation of key tangible and intangible assets. Your engagement team has deep industry and technical experience surrounding the valuation of tangible assets like real estate, machinery and equipment, and inventory, as well as intangible assets (i.e. trade name, customer relationships, technology and noncompete agreements). Our team’s vast knowledge helps you adhere to ASC 805, IFRS 3 and other international guidelines, accurately identifying and valuing tangible and intangible assets.
Located in offices across the United States, our valuation professionals are well-equipped to meet your specific needs. Our team has extensive experience valuing assets across all industries, actively integrating emerging best practices, standards and guidelines so you can have confidence in the valuation you receive.
Ready to get started?
To discuss how our team can help your business, contact us by phone 800.274.3978 or