Audit-Ready Purchase Price Allocation Reports
409.AI helps acquirers allocate purchase consideration to acquired assets at fair value under ASC 805, with expert-reviewed analysis built for post-close reporting and auditor review.
A purchase price allocation (PPA) assigns the consideration paid in an acquisition to the acquired assets and assumed liabilities at acquisition-date fair values, with the remainder recorded as goodwill. ASC 805 requires it for business combinations under US GAAP.
At a glance
| Report | Purchase price allocation report |
|---|---|
| Summary | Expert-reviewed purchase price allocation reports under ASC 805, with fair value analysis of acquired intangible assets and goodwill. |
| Price | From $9,999 |
| Jurisdiction | United States |
What is included
- Deal and acquired-business intake context
- Identification of acquired intangible assets
- Fair value analysis with documented methods and inputs
- Allocation schedule with residual goodwill
- Expert-reviewed final valuation report
Frequently asked questions
What is a purchase price allocation and when is it required?
A purchase price allocation (PPA) assigns the consideration paid in an acquisition to the acquired tangible and intangible assets and assumed liabilities at their acquisition-date fair values, with the remainder recorded as goodwill. ASC 805 requires it for business combinations reported under US GAAP, and IFRS 3 imposes a similar requirement under IFRS.
Which intangible assets are typically identified?
Common identifiable intangibles include customer relationships, developed technology, trade names and trademarks, non-compete agreements, and order backlog. What is recognized depends on the facts of the acquired business.
How are acquired intangibles valued?
Customer relationships are commonly valued with the multi-period excess earnings method, trade names and technology with the relief-from-royalty method, and non-competes with a with-and-without analysis, alongside market and cost approaches where appropriate.
What is goodwill in a PPA?
Goodwill is the residual: the excess of total consideration over the net fair value of the identifiable assets acquired and liabilities assumed. It is not amortized under the default public company model and is instead tested for impairment.
How long do I have to complete the allocation?
ASC 805 allows a measurement period of up to one year after closing to finalize provisional amounts, but in practice the allocation is needed for the first audited financial statements that include the acquisition.
Do asset purchases need an allocation too?
Yes. Asset acquisitions are allocated for book purposes, and taxable asset deals also require a tax allocation under IRC Section 1060, which is a related but distinct exercise your advisors will coordinate.
What do auditors focus on?
Auditors typically test the completeness of the identified intangibles, the forecasts behind the income approaches, royalty rates and discount rates, the internal rate of return versus the weighted average cost of capital, and the reasonableness of the goodwill residual.
Is this tax, legal, or accounting advice?
No. The valuation report organizes company-provided information into supporting documentation and should be reviewed with your auditors and qualified advisors.