Purchase price allocation is an application of “goodwill accounting” whereby the acquirer assigns new values to the target’s assets and liabilities, based upon the price paid. Up until last year, the purchase price allocation was performed in accordance with the Financial Accounting Standards Board’s Statement (SFAS) 141, “Business Combinations” and SFAS 142,“Goodwill and Other Intangible Assets”. Effective for transactions entered into for fiscal years beginning on or after December 15, 2008, FASB issued SFAS No. 141(R), Business Combinations (Revised) (“SFAS 141(R)”), to replace SFAS 141. The rules have significantly changes from SFAS 141. The Pine Hill Group has the expertise to lead you as the new guidance requires.

Collectively, the process of conducting the appraisal, reporting the Fair Market value of assets and liabilities, the allocation of net identifiable assets and the determination of goodwill is referred to as the PPA process, and this requires execution by a team knowledgeable in this area of finance, like the Pine Hill Group.