Business Combination & Purchase Price Allocation (PPA)
When a merger or acquisition (M&A) closes, determining how to allocate the purchase price among the acquired assets and liabilities is critical — for financial reporting, taxation, and compliance. At Synpact Consulting, we deliver robust Purchase Price Allocation (PPA) solutions, tailored to IFRS, ASC 805, or local GAAP standards, ensuring that you meet regulatory and audit‑ready requirements with clarity and confidence. Our multidisciplinary team combines valuation, accounting, and industry knowledge to deliver precise, defensible allocations — helping you navigate the complexities of business combinations from day one.
Why Choose Synpact for PPA
- Standards Expertise: Deep familiarity with IFRS 3, ASC 805, and jurisdictional GAAP ensures compliance across accounting regimes.
- Audit‑Ready Deliverables: We produce documentation and work papers suitable for external auditors and regulators.
- Integrated Valuation & Accounting Approach: Our team performs both the valuation of individual assets / liabilities as well as the accounting entries (goodwill, bargain purchase, amortization).
- Fast Turnaround: Standard PPA assignments delivered within stringent timelines without compromising quality.
- Sector & Transaction Experience: Experience across industries (Tech, Manufacturing, Healthcare) and transaction types (mergers, spin-offs, carve-outs).
- Transparent Methodology: We present allocation rationale, sensitivity analyses, and adjustment justifications in a clear, defensible manner.
Our PPA Service Offerings
Identification & Recognition
Teardown of the acquired business into its component assets and liabilities.
Evaluation of intangible assets (customer relationships, technology, brand, in‑process R&D).
Recognition of contingent liabilities and deferred tax assets/liabilities.
Valuation Analysis
Fair value estimation of tangible assets.
Valuation of intangible assets via income, market, or cost approach.
Estimation of liability fair values and contingent consideration.
Goodwill / Bargain Purchase Accounting
Computation of goodwill or gain on bargain purchase. Allocation of goodwill across reporting units. Documentation for impairment testing.
Post‑Acquisition Adjustments & Allocations
Final adjustments based on closing working capital or contingent items. Sensitivity checks and audit validation.
Process & Workflow
Our structured PPA process ensures accuracy and defensibility throughout the engagement:
- Discovery & Kickoff – Understand transaction structure and objectives.
- Data Collection & Review – Collect financials and agreements.
- Asset / Liability Analysis – Identify and segment components.
- Valuation & Modeling – Build valuation models for each asset.
- Allocation & Goodwill Computation – Allocate purchase price and compute goodwill.
- Review & Sensitivity – Conduct peer checks and scenario analysis.
- Deliverables & Support – Final report, journal entries, and disclosures.
Industries & Use Cases
Industries:
- Technology & Software
- Healthcare & Biotech
- Consumer & Retail
- Manufacturing & Industrial
- Financial Services & FinTech
Use Cases:
- M&A closings where acquirer must account for allocation
- Spin‑offs or carve‑outs
- Private equity buyouts and acquisitions
- Restatement or retrospective PPA corrections
- Audit defense or regulatory review
Frequently Asked Questions (FAQs)
Q: What accounting standards do you support in PPA?
A: We support IFRS 3, ASC 805, and various local GAAP regimes.
Q: How long does a typical PPA engagement take?
A: Depending on transaction complexity, 3–8 weeks is a typical estimate.
Q: Can you help with subsequent adjustments post‑closing?
A: Yes — we support post‑closing adjustments and re‑allocations.
Q: How do you ensure your valuations are defensible to auditors?
A: We provide detailed assumptions, sensitivity testing, and documented methodologies.
Q: Do you handle carve‑out PPA for partial business acquisitions?
A: Yes, our approach adapts to carve‑outs, spin‑outs, and complex intra‑group combinations.
Call to Action
Ready to execute a precise, audit‑ready PPA? Let us help you navigate the complexities of business combinations. Book a consultation or reach out to info@synpactconsulting.com to discuss your transaction.