Purchase Price Allocations
The McLean Group’s Valuation Advisory practice performs purchase price allocations for business combination events in accordance with ASC 805 under U.S. Generally Accepted Accounting Principles. Given the intricacies and dynamic nature of accounting guidance and regulations, keeping up with ever-changing financial reporting standards can be quite a challenge. Some of the unique intricacies with purchase price allocations include those below.
Intricacies We Handle
- Fair Value analysis of rollover equity, especially on a strategic buyer acquisition or with multiple classes of equity in the post-transaction capitalization table
- Fair Value analysis of contingent consideration (e.g. earnouts)
- Analysis of Fair Value considerations for seller notes as purchase consideration
- Impact of election of the private company accounting alternative
- Fair Value analysis of deferred revenue
- Analysis of any above/below market operating leases
Team Leaders
Who leads the practice
Representative Engagements
Selected allocation engagements
Perspective
Related News
Press Release · Apr 2026Purchase Price Allocations Under ASC 805: What Every PE-Backed CFO and Deal Team Needs to KnowA purchase price allocation (PPA) is the first post-close workstream that directly affects reported EBITDA, lender covenant calculations, and eventual exit valuation for PE-backed acquirers. Under ASC 805, every acquisition requires the buyer to allocate [...]Read More →
Press Release · Jul 2025Congratulations on the Acquisition, but the Accounting Analysis May Be Far From OverClosing a deal is only the beginning. Under ASC 805, Business Combinations, companies face complex post-close accounting requirements that can significantly impact earnings and audit readiness. From contingent consideration remeasurement to intangible asset valuation, the [...]Read More →
Press Release · May 2026How Earnouts Affect Transaction Valuation: The Technical Framework Under ASC 805Earnouts are one of the most powerful and most misunderstood tools in middle-market M&A. When buyers and sellers cannot agree on value, a well-structured earnout bridges the gap. But under ASC 805, the accounting treatment [...]Read More →Talk to us about purchase price allocations
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