Purchase Price Allocation Support

Eton Venture Services offers precise, unbiased, and independent purchase price allocation valuations for post-M&A financial reporting compliance.

Our PPA Process

Day 1
Day 2
Day 8
Day 10
Forever
Information Collection
Valuation Modeling and Analysis
Draft Report Delivered; Client Review and Approval
Final Report Delivered
Audit Support

Our PPA Advantage

Eton Venture Services offers precise, unbiased, and independent purchase price allocation valuations for post-M&A financial reporting compliance.
Trustworthy & Transparent

A valuation expert plays a critical role in the PPA process by helping identify and value the acquired company's tangible and intangible assets and liabilities. You can trust Eton’s expertise in various valuation techniques and deep understanding of accounting standards enabling us to provide accurate and defensible allocations, ensuring compliance with regulatory requirements and reducing the risk of financial restatements.

Tailored Approach

We have established best practices for valuation procedures specific to diverse portfolios. Our team takes the time to understand the intricacies associated with each engagement, ensuring a tailored approach that meets your unique needs.

Proven Track Record

Our experts understand the complexity of purchase price allocation, and have a proven track record in helping clients gain confidence in their fair value reporting. Our experience across various business valuation services powers our ability to offer comprehensive and defensible purchase price allocation services.

Unparalleled Expertise

Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.

"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

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FAQs

How does purchase price allocation work?

The PPA process starts with determining the total consideration paid for the acquisition, which may include cash, stock, debt, or other forms of payment. Next, the fair market value of the acquired company’s assets and liabilities is determined, with any residual amount allocated to goodwill. The allocation is based on the estimated useful life and relative value of each asset and liability, which can impact the acquirer’s depreciation, amortization, and tax reporting.
The main components of a PPA include tangible assets, intangible assets, liabilities, and goodwill. Tangible assets are physical items such as property, plant, and equipment, while intangible assets include items like patents, trademarks, and customer relationships. Liabilities are obligations the acquired company has, such as debt or outstanding contracts. Goodwill is the residual value after allocating the purchase price to all other assets and liabilities.
Fair value plays a crucial role in PPA, as it ensures that the acquired company’s assets and liabilities are appropriately valued. By using fair value, the acquirer can accurately determine the depreciation and amortization expenses, tax implications, and other financial reporting requirements. Fair value also provides transparency to investors and other stakeholders about the true cost and value of the acquired business.
Some common challenges in PPA include determining the fair value of complex intangible assets, estimating the useful life of assets, and dealing with potential synergies or contingent liabilities. These challenges can require the expertise of valuation professionals, who use various valuation techniques and assumptions to address these complexities. Additionally, differences between US GAAP and IFRS accounting standards can present challenges in harmonizing the PPA process for international transactions.
The time required for a PPA can vary depending on the complexity of the acquired company, the nature and number of assets and liabilities, and the availability of necessary information. Generally, a PPA can take anywhere from a few weeks to several months. Engaging experienced valuation professionals early in the process can help streamline the timeline and improve the accuracy of the allocation.

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