How A Consultant Can Help You With A Purchase Price Allocation

Have you recently purchased a second business? Did you know that a merger & acquisition initiates additional tax requirements? One of the most important requirements is Purchase Price Allocation (PPA). PPA is the method of allocating a purchase price over the acquired assets and liabilities. To clarify this in a better way, read the below information.

When it comes to purchasing a business, the buyers want to acquire the assets of that business and not buy the actual business entity because the entity could have hidden liabilities. For example, if the previous business owner made a mistake on tax returns, that mistakes could bring thousands of unexpected tax liabilities and penalties, which the new owner would not want to incur.

Purchase Price Allocation Services

 One of the most important steps, that generally miss by both business buyers and sellers, is the allocation of purchase price to assets. To deal with this situation, hiring a professional consultant for purchase price allocation services could be a smart decision.

Today, there are a number of consultants that provide PPA services and assist companies with their due diligence and announced processes. They provide a purchase price allocation in accordance with Accounting Standard Codification 805, Business Combinations, and FASB ASC 820. Be it tangible equipment, fixed assets, financial instruments, real estate, or intangible assets, they have the expertise to value all considerations.

So, if you are in a situation where you need assistance with your due diligence, get purchase price allocation services by a professional consultant to avoid various tax-related complications and ensure that the purchase price allocation is done in an accurate manner.

Top 3 Things To Look For In An Appraiser

Whether it involves buying, refinancing or selling a home, applying for a home equity loan, estimating the economic value of your interest in a business, determining the economic worth of a business or valuable business assets, or simply having your renewable energy appraisal done, it is important to consider a highly qualified professional to perform your appraisal. This is important to ensure that it is completed with the highest level of accuracy and you have the optimal appraisal experience. Here are some of the important aspects you should look for in your appraiser:

Renewable Energy Appraisal

1. So many complex issues and challenges are presented to corporations in the face of expansion, advancing technology, and increasing competition in the marketplace. You want to ensure that the appraiser understands these complex challenges and performs on-site physical tours, estimates depreciation from physical, functional and economical factors, and can effectively analyze your fixed asset records.
2. You also want to ensure that the professional appraiser brings in a wealth of first-hand knowledge and experience in appraisals that is certified by Accredited Senior Appraisers with the American Society of Appraisers (ASA), Members of the Royal Institution of Chartered Surveyors (RICS), Members of the Appraisal Institute (AI), and Certified General Appraisers.
3. Some of the latest concepts used in appraisals include replacement cost, reproduction cost, fair market value in continued use, fair market value installed, orderly liquidation value, forced liquidation- auction value, and salvage value- scrap value, among others. Ensure that the appraiser uses these concepts.

Some of the leading valuation consulting firms with over 90 years of experience and comprehensive knowledge of complex valuations and appraisal matters, provide reliable valuation advisory and consulting to public and closely held businesses, as well as government agencies located around the world.