Purchase Price Allocation

Signing a Share Purchase Agreement may appear to be the final step in a merger and acquisition transaction; however, it signifies the commencement of critical actions necessary for integrating the acquisition into the buyer's financial records.

Under HKFRS 3 / IFRS 3, the purchase price paid in a business combination must be allocated to the acquired assets and assumed liabilities. This process is known as Purchase Price Allocation ("PPA"). The fundamental principle of PPA is that the total consideration for the transaction must be divided among the acquired assets and liabilities, with any remaining value attributed to goodwill. Goodwill reflects intangible factors such as brand reputation, customer loyalty, and synergies expected from the acquisition.

This accounting procedure is essential for accurately reflecting the fair value of the acquired assets and liabilities on the balance sheet.

WeValue utilizes a comprehensive PPA process to deliver unbiased insights that enhance transparency in valuation. Our valuation specialists are well-versed in regulatory requirements, ensuring compliance with HKFRS 3 / IFRS 3, and other international standards. Our team possesses extensive industry and technical expertise in valuing both tangible and intangible assets.

Typical tangible assets include:

Typical intangible assets include: