Purchase Price Allocation is the allocation of acquired assets and liabilities at fair value.
Assets are tangible and intangible and liabilities are all debts.
The process includes the identification and valuation of assets and liabilities.
- Industrial plants, urban and rural real estate, land, etc…;
- Machinery, equipment, installations, etc…;
- Debts and obligations.
When the value of the assets, minus the value of the liabilities, is lower than the acquisition value, we identify the goodwill of the transaction.