Purchase Price Allocation
Welcome to Covenant Business Advisory Pte. Ltd., your trusted partner in accurate and compliant Purchase Price Allocation (PPA) services. Our expert team provides precise allocation of purchase prices in line with financial reporting standards, ensuring transparency and compliance for your mergers and acquisitions.
What is Purchase Price Allocation (PPA) ?
Purchase Price Allocation is the process of assigning the purchase price of a business acquisition to the acquired assets and liabilities. This process is critical for compliance with accounting standards such as Singapore Financial Accounting Standards (SFRS), which require a detailed allocation for financial reporting purposes.
Why is Purchase Price Allocation Important?
An accurate PPA ensures:
- Regulatory Compliance: Meets the requirements of international accounting standards.
- Transparency: Provides stakeholders with a clear breakdown of asset values.
- Tax Optimization: Identifies opportunities for potential tax savings through asset categorization.
- Informed Decision-Making: Offers insights into the fair value of tangible and intangible assets.
Our PPA Services
At Covenant Business Advisory, we deliver a comprehensive suite of PPA solutions tailored to your business needs:
1. Asset Identification and Valuation
We assess and value the tangible and intangible assets acquired in the transaction, including:
- Property, plant, and equipment (PPE)
- Intellectual properties (ie. patents, trademarks, copyrights)
- Customer relationships
- Brand value and goodwill
2. Liabilities Assessment
Our team evaluates and assigns fair values to liabilities, such as contingent liabilities and deferred tax liabilities.
3. Goodwill Calculation
We determine the goodwill arising from the transaction, reflecting the premium paid above the fair value of net assets.
4. Compliance Reporting
We provide detailed PPA reports that adhere to SFRS or other relevant accounting frameworks, ensuring a seamless audit process.
5. Post-Acquisition Support
We assist in integrating the allocated values into your financial systems and provide ongoing support for subsequent financial reporting.
Who Can Benefit from PPA Services?
Our PPA services are essential for:
- Acquirers: Ensuring compliance and optimizing post-deal financial reporting.
- Investors: Understanding the value derived from an acquisition.
- Auditors: Gaining clarity on valuation methodologies used in transactions.
Why Choose Covenant Professional Services ?
- Expertise Across Industries: Our team has extensive experience in various sectors, ensuring industry-specific insights.
- Comprehensive Analysis: We employ proven methodologies to deliver accurate and reliable valuations.
- Regulatory Knowledge: Stay compliant with the latest accounting standards and practices.
- Client-Centric Approach: We tailor our services to meet your unique business needs.
Our Process
- Initial Consultation: Understand the scope of the transaction and your specific requirements.
- Data Collection: Gather all relevant transaction details and financial data.
- Asset and Liability Valuation: Conduct thorough assessments to determine fair values.
- Report Preparation: Compile a detailed PPA report for submission to stakeholders and auditors.
- Ongoing Support: Provide guidance for integrating PPA outcomes into your financial statements.