In the early stages of a potential acquisition, it is imperative for a prospective buyer to be able to estimate potential balance sheet and future profitability impacts. When it comes to preparing a Pre-Deal Purchase Price Allocation (PPA), for example, often the short time frame and limited data available pose significant challenges.
KPMG's Pre-Deal PPA Solution calculates and visualizes potential balance sheet impacts arising from the contemplated acquisition in a few simple steps, allowing for immediate assessment of the effects of the acquisition.
To derive intangible and tangible assets and liabilities values, the online solution relies on a KPMG database containing relevant valuation parameters from over 40 industries. The tool thus delivers a valid assessment without the need for time-consuming research into valuation assumptions (such as royalty rates and economic or fiscal useful lives). Furthermore, the user’s own assumptions can easily be incorporated into the calculation and plausibility checks can be performed.
