In an ever-evolving business landscape, intangible assets – elements like intellectual property, brand recognition, and customer relationships – play a critical role in determining a company’s value. These ‘invisible’ assets can sometimes prove to be a company’s most valuable resources, often exceeding the worth of physical assets. However, during an economic downturn, accurately valuing intangible …
Introduction In the aftermath of an M&A transaction, the purchase price paid by the acquiring business must be allocated to both the acquired assets and the assumed liabilities of the acquired business. This process is referred to as “purchase price allocation,” or PPA. In certain situations, PPA process can be particularly challenging, such as when …
Addressing Purchase Price Allocation Challenges in Mergers and Acquisitions Read More »
Introduction Due diligence is a crucial aspect of the purchase price allocation (“PPA”) process during mergers and acquisitions (“M&A”) and business combinations. Thorough due diligence helps ensure that the PPA is accurate, compliant with accounting standards, and optimized for tax purposes. In this article, we will discuss the importance of due diligence in the PPA …
Best Practices for Conducting Due Diligence in Purchase Price Allocation Read More »
Introduction Purchase Price Allocation (“PPA”) is a critical aspect of mergers and acquisitions (“M&A”) and business combinations, with significant tax implications for the involved parties. Navigating the complexities of PPA for tax purposes can be challenging, but a thorough understanding of the process can help businesses optimize their tax positions and minimize potential controversies. …
Purchase Price Allocation for Tax Purposes: Navigating the Complexities Read More »
Introduction Intangible assets play a crucial role in the purchase price allocation (“PPA”) process during mergers and acquisitions (“M&A”) and business combinations. Identifying and valuing these assets accurately is essential to ensure compliance with accounting standards and optimize the financial and tax benefits of the transaction. In this article, we will explore the importance of …
Understanding the Role of Intangible Assets in Purchase Price Allocation Read More »
Introduction Purchase Price Allocation (PPA) is a critical aspect of acquisition accounting, where the purchase price is allocated to the assets and liabilities of the acquired company. Adherence to accounting principles, such as General Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), is mandatory for business combinations, including mergers and acquisitions, and requires …
Overview of Purchase Price Allocation Methodologies Read More »
In McLelland v. Paxton, 11 Wash. App. 2d 181, 453 P.3d 1, 11 Wn. App. 2d 181 (Wash. Ct. App. 2019), the Washington Court of Appeals delved into the issue of goodwill in the context of a professional limited liability corporation (PLLC). The court concluded that a PLLC could indeed enjoy goodwill, providing valuable insights …
Recognizing Goodwill in Professional LLCs: Analysis of McLelland v. Paxton Read More »
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