Home

Quick Links

Legal

navigation
Home > Services > Consulting > CFO Advisory > Business Valuations > Business combinations, purchase price allocation & goodwill impairment

Business combinations, purchase price allocation & goodwill impairment

Business combinations, purchase price allocation & goodwill impairment


We provide a multi-disciplinary approach to helping clients in the merger or acquisition of a business. From due diligence to tax implications to accounting for and valuing the assets, our team will work with you to understand the transaction, the business acquired, and meet your compliance needs throughout the M&A process.

ASC 805 specifies that the accounting for an acquisition must identify the fair value of all assets acquired and liabilities assumed as of their acquisition date. Independent valuations for  purchase price allocations insure compliance with these accounting rules when you acquire a business or assets. Further, ASC 805 requires any equity compensation awards assumed or granted as part of the deal, be valued at fair value on the acquisition date.

Once the assets from a merger or acquisition are on the books, ASC 350 requires companies to use a process to measure the impairment of goodwill.