When should you perform Purchase Price Allocation in Singapore?
Purchase price allocation (PPA) is a commonly conducted exercise by valuers in situations involving business combinations. Apart from traditional acquisitions, there are occasions that require the performance of a PPA. Below are examples of when a PPA should be performed.
Key Matters in Valuation
– Mergers and acquisitions (M&A) deals: To allocate purchase price to acquired tangible and intangible assets.
– Purchasing intellectual property: To record value of trademarks, licenses, franchises acquired.
– Land or property purchases: To allocate values to land, buildings, fixtures.
– Privatization of companies: To value assets when privatizing government entities.
– Larger partnership deals: To record fair value of assets acquired.
– Technology company acquisitions: To value acquired tech-related intangibles.
– Acquiring controlling interest: When acquiring 50%+ shares to gain control.
– Overseas expansions: To value assets when acquiring overseas businesses.
In summary, PPA is commonly required in M&A, IP purchases, property deals, privatizations, partnerships, tech acquisitions, controlling interest deals, and overseas expansions in Singapore to record the fair values of acquired tangible and intangible assets.
Further Reference
– Mergers and acquisitions (M&A) deals: To allocate purchase price to acquired tangible and intangible assets.
– Purchasing intellectual property: To record value of trademarks, licenses, franchises acquired.
– Land or property purchases: To allocate values to land, buildings, fixtures.
– Privatization of companies: To value assets when privatizing government entities.
– Larger partnership deals: To record fair value of assets acquired.
– Technology company acquisitions: To value acquired tech-related intangibles.
– Acquiring controlling interest: When acquiring 50%+ shares to gain control.
– Overseas expansions: To value assets when acquiring overseas businesses.
In summary, PPA is commonly required in M&A, IP purchases, property deals, privatizations, partnerships, tech acquisitions, controlling interest deals, and overseas expansions in Singapore to record the fair values of acquired tangible and intangible assets.