One of the financial valuation services provided by ValuMaven is Purchase Price Allocation (PPA) for financial reporting, U.S. federal tax reporting, and international tax reporting.

Purchase Price Allocation (PPA) is relevant to any company involved in the acquisition of another business. When an acquisition occurs, the acquirer is generally required to allocate the purchase price among the identifiable assets acquired and liabilities assumed as part of the transaction. While intangible assets were historically subsumed within goodwill, current accounting standards require these assets to be separately identified, recognized, and recorded on the balance sheet. This process directly affects the resulting goodwill balance and may also have significant tax implications for the acquirer.

Because the acquirer’s auditor is not permitted to perform the PPA, an independent third-party valuation firm is typically engaged to conduct the PPA valuation in accordance with applicable accounting and tax standards.

ValuMaven performs PPA valuations in accordance with auditor requirements and applicable accounting standards. Our methodology identifies and values a broad range of intangible assets, including brands and trademarks, patents, software, copyrights, customer relationships, and order backlog.

We recognize that PPA can be a complex and challenging process for companies. When valuations are not executed efficiently, they can result in unnecessary delays and additional costs for both management and auditors. ValuMaven’s objective is straightforward: to deliver high-quality, audit-ready PPA valuations through a streamlined and collaborative process. Our experienced valuation team works closely with all stakeholders to minimize friction and reduce unnecessary costs for both the acquirer and the auditor.