Valuation 101: Purchase Price Allocation Articles
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Brustkern moderates Fair Value Summit Panel
Bo Brustkern, founder and managing director at boutique valuation firm Arcstone Partners, recently moderated a panel featuring Tony Aaron of Ernst & Young, and PJ Patel of Valuation Research Corp at BVR's 3rd Annual Summit on Fair Value for Financial Reporting in New York. The gist of their discussion was...
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Arcstone Articles: re-organized, made better!
At long last, we've reorganized the Arcstone Articles to read much more like they ought to: that is, ordered by topic instead of by date. We'll keep tinkering. Heck, we may completely remodel. But for now, you'll want to know that all of our articles are organized into the following...
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1. Empirics and Analytics
At Arcstone, quantitative analysis is balanced with qualitative reasoning. Data, reason and logic: the lodestars of at least one Silicon Valley CEO. So it should be with a responsible valuation practitioner. I’ll stop and mention for the record that we at Arcstone have no illusions about our place in the...
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2. Purchase price allocations: a primer on SFAS 141
A Quick explanation of SFAS 141: Business Combinations If you've been through an M&A transaction in the past few years, you've experienced the need for a purchase price allocation to stay in compliance with Generally Accepted Accounting Principles (GAAP) according to SFAS 141. SFAS 141 is that new-ish accounting rule...
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3. Your projections matter. Now.
There is a growing emphasis on the forecasts of private companies. Get with the program. Here’s a couple of valuation truisms every CFO should know. Valuations are often highly reliant on the forward-looking projections of the client, Valuation reports are undergoing scrutiny in the financial reporting realm as never before....
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4. Fair Value, Fair Value and Fair Market Value
Understanding Standards of Value. When you obtain a valuation, you're getting it for a certain purpose (or purposes). Understanding that purpose allows us as your service provider to define the appropriate Standard of Value by which our work will be guided, and judged. Sometimes various standards of value can conflict...
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5. Goodwill impairment: a primer on SFAS 142
Explaining SFAS 142: Goodwill and Other Intangible Assets If you've been through an M&A transaction in the past few years, you've experienced the need for a purchase price allocation to stay in compliance with Generally Accepted Accounting Principles (GAAP) according to SFAS 141. As you proceed along the often bumpy...
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