Purchase Price Allocations

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.

Amercian Appraisal provides independent purchase price allocations for inclusion in financial statements and in tax returns. We perform these allocations either before, after or during the transaction depending on the clients' requirements. We can also negotiate allocations with the relevant tax authorities.

Amercian Appraisal has extensive experience of undertaking purchase price allocation exercises having worked for both UK and US listed companies. Our independence is paramount for commissioning such work. Under the strict independence rules which apply to all listed companies worldwide, the companies auditors are prohibited from undertaking this valuation work . Amercian Appraisal is regularly recommended by 'Big 4' audit firms where independence rules often prohibit their direct involvement.