Context
  • Our client, CFO of a listed French company, has approached a foreign company to create the world leader in the sector. 
  • This should allow our customer to create value through strong synergies with complementary activities.
Financial Valuation / Purchase Price Allocation & Impairment Test / Business Case - PPA​
Contexts
Credentials
Client needs
 
  • Following this recent acquisition, our client must apply the IFRS3 standard by allocating goodwill to the assets and liabilities acquired.
  • This is a major challenge for our client in terms of market information. The level of residual goodwill and the impact in the medium and / or long term on the financial statements. It is also for our customer to anticipate future impairment tests.
 
Our strenghts
 
  • A team with a strong experience in purchase price allocation and a significant track record.
  • A pragmatic and not dogmatic approach of applicable standards.
  • A regular publication of articles on the subject and conferences with law firms.
  • A pluridisciplinary offer accompanying you on all financial, accounting, legal and tax issues during acquisitions..
  • A perfect knowledge of independent appraisers and market authorities expectations.
  • Setting up an internal quality control.
  • An alternative to the BIG 4.​
Approach / Methodology
 
  • Our work included, in a non-exhaustive manner, the following steps :
    • Analysis and understanding of the business model and the strategic issues of the operation ;
    • Identification of assets acquired ; 
    • Determination of the fair value of assets and liabilities. ;
    • Determination and allocation of the remaining accounting goodwill and assets / liabilities identified to CGU and deferred taxes; ;
    • Impairment test (preparation and implementation).