Valtech’s valuation team has recently completed a Purchase Price Allocation (PPA) assessment for a leather manufacturing company. This company purchased a target company with subsidiary which is principally engaged in the business of leather manufacturing in the PRC. We are glad to be a trusted valuation firm for delivering valuation opinion to client in leather manufacturing sector.
PPA is an important step in accounting reporting after the completion of a merger or acquisition. It is a practice in which an acquirer assigns the purchase price to all the acquired assets and liabilities of the target company. After allocating as much of the purchase price as possible to all acquired assets and liabilities, what remains is goodwill.
Before arriving at the conclusion, we have exercised due care in analyzing the target company’s financial projection and conducted in-depth research on market performance. We have also made a timely and effective communication with the client and its auditor.
