Post Acquisition Services

In transactions involving the sale of more than one company, an allocation of the purchase price to each company is required by both buyer and seller for tax, reporting and financing purposes. The purchase price allocation sets the base cost of each company for the buyer and the sale proceeds for the seller. Such allocations are particularly important for global businesses operating in multiple tax jurisdictions.

The worldwide accounting treatment for business combinations is now largely consistent following the issue of International Financial Reporting Standard 3 ('IFRS 3'). The standard requires the buyer to recognise all identifiable assets, liabilities and contingent liabilities which have been acquired in any transaction at their fair values at the acquisition date. This includes all tangible and intangible assets and goodwill. Goodwill and intangible assets with indefinite lives are no longer amortised but must then be tested annually for impairment. More >>