Valuation requires an in-depth understanding of the business, its competitors and the market in general.
It is a complex and sometimes controversial subject that requires the interpretation of both financial and non-financial information, as well as an understanding of relevant regulatory environments.
HMT has supported many clients with valuation advice whether within M&A, tax restructurings or for FRS102 financial reporting purposes.
When a Company is acquired, certain accounting standards require a Purchase Price Allocation to be performed. As part of this process, separately identifiable intangible assets of the acquired business must be identified and valued so that they can be recognised at their fair value in the financial statements of the acquiring business. Until recently, the requirement for a company to perform this exercise was predominantly confined to quoted groups or entities that form part of a US-owned group, however following the introduction of the FRS102 accounting standard, this is now applicable to the vast majority of UK unlisted companies.
As a result, many companies including acquisitive SME’s and Newcos created as part of MBOs or MBIs, are needing a Purchase Price Allocation for the first time. We provide FRS102 purchase price allocation services and can work with you to produce these calculations, together with the fair values required for the acquired intangible assets in your entity financial statements.