We prepare purchase price allocations for UAE acquirers, from single-company deals to regional group acquisitions.
Situations
When UAE clients ask for this valuation
- 1You have completed an acquisition that is a business combination under IFRS 3.
- 2The provisional allocation must be finalised within the measurement period.
- 3Contingent consideration needs to be measured at fair value.
Who asks us
Typical clients
- Acquirers' finance teams
- Private equity portfolio companies
- Group CFOs
What we value
The subject of the valuation
Customer relationships, brands and trademarks, technology and software, order backlogs, favourable contracts and non-compete agreements, together with deferred or contingent consideration.
Our method
How we reach the figure
Brands and technology are typically valued using relief-from-royalty, customer relationships using the multi-period excess earnings method, and other assets using income or cost approaches. The total is reconciled with the price paid, and the returns implied on each asset are compared with the overall return on the deal.
| Income | Relief-from-royalty and multi-period excess earnings | Usual starting point |
|---|---|---|
| Check | Asset values reconciled to the price paid | Cross-check |
| Cost | Cost approach for other assets | Where relevant |
Value drivers
Points that move the value
- Identifiable intangibles
- Which assets meet the IFRS 3 recognition criteria.
- Useful lives
- How long each asset is expected to generate benefits.
- Consideration
- The fair value of deferred and contingent amounts.
Documents
What we will ask you for
- Sale and purchase agreement
- Completion balance sheet
- Deal model and forecasts
- Customer and contract data
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A PPA report with fair values, useful lives and the goodwill calculation, ready for audit review.
Management is responsible for the financial statements and the assumptions adopted in them; the auditor forms its own view. Our valuation supports management's assessment and is prepared so the auditor can review it.
Timing
Usually four to six weeks.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Why does goodwill matter after the PPA?
- Goodwill is not amortised under IFRS but must be tested for impairment at least annually.