PPA Valuation for US-based company

Valtech’s Valuation Team has recently concluded a Purchase Price Allocation (PPA) valuation for a US-based company with securities traded over-the-counter (OTC). Following the acquisition of a Hong Kong-based smart Internet of Things (IoT) company, in adherence to the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805 Business Combinations, the acquirer is obligated to perform a PPA valuation to allocate the purchase price among the acquired company’s identifiable assets and liabilities.

The identification of intangible assets during the PPA valuation process is a complex undertaking, demanding a comprehensive understanding of the acquiree’s business model and its value drivers. Our seasoned valuation team, engaging in a series of communications with the acquiree’s management team, successfully pinpointed several key customer-based intangible assets under the applicable accounting framework. These assets were meticulously valued using commonly accepted approaches for intangible asset valuation.

This rigorous process ensures not only compliance with accounting standards but also provides a thorough and accurate representation of the acquired company’s assets and liabilities. The expertise of our valuation team, coupled with effective communication with the acquiree’s management, enhances the precision of the valuation outcomes, contributing to the acquirer’s transparency and reliability of our financial reporting.

As we continue to strengthen our global presence, these meticulous valuation practices remain integral to our commitment to sound financial governance and reporting.

Why Appoint Valtech as Valuation Adviser?

Valtech’s team has provided valuation advice to over 200 listed companies in Hong Kong, China, Singapore, Taiwan, Australia, the United Kingdom, the United States and Germany.

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The financial market and valuation requirements are highly dynamic. We are determined to develop and maintain a quality management system to foster an environment which is sustainable and evolving continuously. Our founders stress on development of a system and an environment that our consultants are provided with necessary support and opportunities to thrive.

We are a team of professionals from multiple disciplines including audit, financial modelling, tax, internal control and surveying. Our management adheres professional excellence. Abundant resources are reserved to develop standardized policies and procedures for quality control. We have solid track record in valuation advisory for listed companies, private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate financial advisors, fund managers and legal advisors.

Valtech Advantages:

Advanced Valuation Techniques: Valtech Valuation can develop and implement advanced valuation techniques that are specifically tailored to the needs of clients. These techniques can go beyond traditional valuation methods and incorporate factors such as market trends, industry benchmarks, and risk analysis to provide more accurate and insightful valuations.

Customized Valuation Models: Valtech Valuation can create customized valuation models that align with the unique investment strategies and asset classes. By understanding the specific requirements and objectives of these entities, Valtech Valuation can develop models that capture the nuances of their portfolios, resulting in more precise and relevant valuations.

Data-driven Insights: Valtech Valuation can leverage its access to comprehensive data sources and analytics tools to provide data-driven insights. By analyzing market data, economic indicators, and performance metrics, Valtech Valuation can offer valuable insights into the valuation of assets, identify emerging trends, and help inform investment decision-making.

Adherence to Compliance and Reporting Standards: Valtech Valuation can ensure that valuation practices adhere to regulatory compliance and reporting standards. By staying updated on relevant regulations, such as accounting standards and industry guidelines, Valtech Valuation can help clients meet their reporting obligations accurately and in a timely manner.