Case Study

Purchase Price Allocation

Valuation Services

Following an acquisition in the telecommunications software and services industry, a valuation analysis was performed of certain acquired tangible and intangible assets. The analysis was used to support the allocation of the purchase price as required by financial reporting standards. Given the technology- intensive nature of the acquired company, there was significant value associated with the intangible assets. The intangible assets that were valued included acquired technology, workforce-in-place, assumed contracts and in-process research and development. The estimated values and associated useful lives were used for the book reporting of the acquired assets and their proper depreciable life.