Enhanced transparency for clear investment decision making

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.

Johannes Post

Partner, Deal Advisory, Global Head of Valuation Services

KPMG Switzerland

Insight into the dashboard

demo pre deal ppa webslider
demo pre deal ppa webslider

All advantages at a glance

  • Effective:
    Short input process in five simple steps provides flexibility for analyses and scenario calculations.
  • Simplicity:
    Straightforward implementation of the Pre-Deal PPA is ensured by a straightforward workflow.
  • Reliable:
    Fully integrated calculation in accordance with IFRS 3 is based on KPMG valuation standards and incorporates PPA benchmark data.
  • Clearly structured:
    Significant PPA effects and relevant valuation parameters are visualized in a dashboard.
  • Convenient:
    Results available online as well as via Excel export.

Further product information

Scope of delivered results
  • Presentation of intangible and tangible assets and liabilities
  • Derivation of goodwill
  • Calculation of balance sheet effects of the PPA
  • Presentation of the effects on profitability
  • Possibility to enter own valuation assumptions
Product presentation

Product presentation

Product variants at a glance

Self Service: Independent access to all functions of the tool. This allows you to enter the data yourself and view the results directly as well as export via Excel.

Managed Service: In addition to Self Service, you are provided with a KPMG contact person to aide in setup and data entry. Preliminary results will be presented in a personal meeting and an executive summary will be provided.

Tailored Service: Full implementation of a Pre-Deal PPA using the Online Tool by KPMG. In addition to Managed Service, this product variant includes a tailored derivation of the valuation parameters and background research, assessment of the data as well as documentation adapted to individual requirements, i.e. a detailed report.

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