OBJECTIVE:
Participants will learn how to approach a purchase price allocation for financial reporting purposes after a business acquisition or combination closes. The seminar provides a summary of valuation techniques used for specific, identifiable intangible assets and provides a step by step review of sample calculations for valuing different types of intangible assets resulting from a business purchase.

The course will provide participants with tools that will allow them to prepare a purchase price allocation with less support from an outsourced advisor than they otherwise might use. It will teach participants how to segment enterprise cash flows based on capital charges and how to allocate them to different intangible assets, as well as how to assess the relative riskiness of different types of intangible assets that result from a business acquisition or combination. Also covered are methods to segment enterprise cash flows based on capital charges and how to allocate these charges to different intangible assets. Participants will learn techniques for assessing the relative riskiness of different types of intangible assets that result from a business acquisition or combination.

WHO WILL BENEFIT:
CPAs in public practice providing purchase price allocation support work and/or controllers and CFOs involved in the financial reporting element of business acquisitions.

LEARNING OUTCOMES:
By the end of this seminar, participants should be able to: 

• identify different types of intangible assets that result from a business acquisition or business combination and develop a purchase price allocation framework,
• utilize excess earnings approaches to intangible asset valuation and royalty relief methods to value different identifiable intangible assets.
• apply capital charges to different types of intangible assets to develop a cash flow stream that can be quantified and valued, as is required in the valuation of identifiable intangible assets, and
• reconcile the valuation of individual intangible assets with an overall business purchase price and will solve for the value of goodwill in a purchase price allocation.

CONTENT:
Topics covered in this course include:

• overview and process of allocating and reconciling the purchase price following a business acquisition, and
• valuation techniques relating to intangible assets such as trademarks, technologies, trade secrets, non-competition agreements, workforces, customer relations, and order books.

PREREQUISITES:
This seminar requires that participants have one of two prerequisites:

• Experience in a role involving PPA, or
• Completed either or both of the following courses: Business Valuations – Fundamentals or Business Valuations – Advanced 

COURSE LEADER: JENNIFER BROWNRIDGE, CPA, CA