Purchase Price Allocation – ASC 805/FASB 141R

The purpose of ASC 805/FAS 141R is to provide investors with better financial information as to the success of past acquisitions. In the process of doing this, the FASB has forced firms to deal with a number of thorny and confusing valuation issues. Axiom Valuation provides expert and cost-effective purchase price allocations for acquisitions for compliance with ASC 805/FAS 141R. Axiom Valuation is an independent valuation expert, and our work has been reviewed and approved by all the major auditing firms.Axiom Valuation provides expert and cost-effective custom valuation services for acquisitions for compliance with ASC 805/FAS 141R. We work with a number of private equity firms on purchase price allocations of their portfolio companies, as well as working for companies making multiple acquisitions.

Valuing Acquisition Intangibles and Goodwill

We have extensive experience in valuing intangible assets, including customer lists, intellectual property, and non-compete agreements, personal goodwill, internal software development, and R+D in process, with varying degrees of complexity. Our reports provide complete documentation of calculations, inputs, and assumptions to minimize auditor time and expense in the review process.

Tangible Assets

We work independently and with other appraisal experts, such as porperty apprasiers and machinery and equipment specialty apprasiers to provide comprehensive tangible asset valuations for purchase price allocations.

Independence

FASB requires that the valuations related to application of the rules of FASB 141R be conducted by or reviewed by a valuation expert, independent of the firm needing the valuation and the firm’s auditor. Axiom Valuation can provide this service as an independent valuation expert.

For more information about valuing acquisition intangibles and goodwill, read Dr. Stan Feldman’s paper:Calculating Goodwill Impairment: Valuation Issues Raised by Financial Accounting Statement 142.