Purchase Price Allocation

Recently purchase price allocation for financial accounting reasons has undergone significant changes. Now, fair values must be assigned to all major assets and liabilities of an acquired enterprise following all business combinations. For federal tax purposes, when assets are acquired, the purchase price must be allocated to the underlying assets in order to determine depreciation and amortization allowance.

Corporations that are planning a business combination should consider all potential effects of the transaction under the new rules and plan to carry out a thorough purchase price allocation accordingly. Before a company begins the process of business combination it must consult with a capable business valuation team to discuss all the possible ramifications regarding purchase price allocation. Meyers, Harrison and Pia, LLC has the experience and expertise to competently and accurately work through the multitude of tax, accounting and valuation issues encountered in a complex purchase price allocation.