Purchase Price Allocation – PPA (取得価格配分)



Growin’ Partners identifies and evaluates intangible assets in the allocation of acquisition value.

Purchase price allocation (PPA) refers to how acquisition prices are allocated to the appropriate account item based on market value of assets or liabilities.

In other words, accounting for acquired businesses. This is done by marking each acquired/transferred asset or liability with its market value. It also involves identifying intangible assets, such as trademark rights and customer assets, goodwill, and negative goodwill. The purpose of PPA is to reflect values accurately.

M&A実行フェーズにおけるPPAシミュレーション(Pre-Closing PPA) PPA simulation during M&A execution (pre-closing PPA)

To implement PPA at the M&A review stage, we first analyze the impact of certain values (profit and loss, etc.). After that, the acquisition price can be analyzed by estimating the effect of each intangible asset recorded, the amount of goodwill, and the amortization burden.

Simulating post-acquisition accounting figures during M&A provides critical information for execution strategy, acquisition prices, and other decisions.

At Growin’ Partners, our wealth of experience enables us to simulate accounting figures. We do this after an M&A project’s review phase in order to guide the client through various key decisions.

M&A実行後のPPAによる会計処理サポート PPA accounting support post-M&A

PPA has a considerable impact on the financial statements of acquired companies, and audit firms are justifiably interested in the results.

In practice, it is particularly important to identify and evaluate the types of intangible assets to be allocated. To ensure smooth implementation of PPA, we rely not only on evaluation technology, but also on prior consultation with auditors.

Growin’ Partners has long supported PPA accounting after M&A execution. As such, we are well versed in the audit process. We have the know-how to assess the value of intangible assets and respond promptly to auditor inquiries.