ASC 805 – Business Combinations
Transaction
- Buy Side & Sell Side
- Deal Making
- FV of Net Assets as at Acquisition Date
- Mergers & Demergers Non-Control
- Share Exchange Ratio
- Horizontal & Vertical Acquisitions
Compliance
- Fair Value Compliance
- Impairment Testing
- Purchase Price Allocation
- Non-Control Investments at FVTPL
- Valuation of Minority/NCI in Consol
Have more questions?
Multiple Segments means Multiple levels of Risks
Different Territory = Varied Risks
Multiple Currency Revenue/Cost
Valuation Complexities
Levering and Unlevering Beta based on a unique and changing capital structure
Identifying Control Premium
Diversified Segments under One Company
Separating Intangible Assets
Geographical Segments in Multiple Nations (MNCs)
Valuation Complexities
High growth potential
No revenues and operating losses
Uncertain call future potential
Primary asset = IP
Expected ESOP
Negative bottom line
Private entity (non-comparable listed entities)
How can we help you?
Observing Data of Deals in the Market
Adjusting Research Expenditure
Understanding Cyclical/Seasonal Nature of Industry
Proper Adjustments for country risks, business risks, cash flow risks, and entity specific risks
Regression on Market Data
Use of bottom-up Beta
How can we help you?
Observing Data of Deals in the Market
Understanding Cyclical/Seasonal Nature of Industry
Regression on Market Data
Adjusting Research Expenditure
Proper Adjustments for country risks, business risks, cash flow risks, and entity specific risks