In an M&A transaction, the purchase price is only the beginning. Once control is obtained, the acquirer needs to determine what was actually acquired and how the value of those assets and liabilities should be recognized.
Purchase Price Allocation (PPA) plays a critical role in this process. Under IFRS 3, PPA involves identifying and measuring identifiable assets and liabilities at the acquisition date, including intangible assets that may not have been separately recognized before the transaction.
Valuation therefore sits at the heart of PPA. From tangible assets such as real estate and machinery to intangible assets including trademarks, customer relationships, technology, software, and licenses, each asset may require different valuation approaches and professional judgment.
At TMS Consultancy, we support businesses throughout the PPA process: from transaction analysis and asset identification to tangible and intangible asset valuation and preparation of the final PPA report.
📖 Explore TMS Insights – September 2026 to learn more about how valuation helps translate an M&A transaction into a well-supported accounting and reporting outcome.
Purchase Price Allocation (PPA): Beyond Goodwill Calculation
In an M&A transaction, the purchase price is only the beginning. Once control is obtained, the acquirer needs to determine what was actually acquired and how the value of those assets and liabilities should be recognized.
Purchase Price Allocation (PPA) plays a critical role in this process. Under IFRS 3, PPA involves identifying and measuring identifiable assets and liabilities at the acquisition date, including intangible assets that may not have been separately recognized before the transaction.
Valuation therefore sits at the heart of PPA. From tangible assets such as real estate and machinery to intangible assets including trademarks, customer relationships, technology, software, and licenses, each asset may require different valuation approaches and professional judgment.
At TMS Consultancy, we support businesses throughout the PPA process: from transaction analysis and asset identification to tangible and intangible asset valuation and preparation of the final PPA report.
📖 Explore TMS Insights – September 2026 to learn more about how valuation helps translate an M&A transaction into a well-supported accounting and reporting outcome.