Business Valuations & Asset Valuation

Valuations Related to Mergers & Acquisitions

Armanino provides purchase price allocation valuations for compliance with ASC 805 and ASC 350 accounting rules. These company valuations estimate the fair value of intangible assets, goodwill, liabilities and contingencies.

Business Combinations/Asset Purchases: FASB ASC 805

In 2009, the Financial Accounting Standards Board codification project reorganized U.S. Generally Accepted Accounting Principles (GAAP) into the FASB Accounting Standards Codification (ASC). FASB ASC 805 (previously SFAS No. 141R) requires that the accounting for an acquisition must identify the fair values of all assets acquired and liabilities assumed as of the date of the acquisition. requently, this requires the independent valuation of the business interest (or assets) acquired, the allocation of the value of the purchase consideration to the identifiable tangible and intangible assets acquired, and to goodwill.


Goodwill and Other Intangible Assets: FASB ASC 350

ASC 350 (previously SFAS No. 142) requires companies to use a process to measure the impairment of goodwill. The first step determines whether possible goodwill impairment should be recognized by comparing the fair value of the invested capital of a reporting unit with its book value (carrying value). If the appraised value is less than the carrying value, then the company must proceed to a second step in which the value of the impairment is determined. Similar to the accounting for an acquisition, this requires independent valuation of the business or group of assets at a “reporting unit” level, the allocation of the aggregate value of the reporting unit to its identifiable tangible and intangible assets, and to goodwill. The impairment is equal to difference between the book value of goodwill and the value of goodwill determined by the valuation.


Experienced Valuation Experts

Armanino has provided hundreds of independent third-party valuations. Our specialty is valuing technology businesses and technology-centric assets. Since 1987, we’ve helped many venture-backed technology companies at every stage of evolution and within every major sector