Brand: What's in a name? Careful consideration of brand valuation issues can improve deal reporting
For many consumer products companies, M&A transactions are often driven by the underlying brands. However, as a recent publication from PwC reveals, brand-rich transactions can be fraught with accounting complexities.
Brands: What’s in a name? provides important guidance to consider when planning a consumer products transaction. This publication explains how keeping a careful eye on the valuation and purchase accounting issues can provide better insight into the potential accretive or dilutive impact of a deal, help improve and streamline post-deal accounting and even reduce the risk of impairment in some cases.
Key issues to consider:
- Determining whether you acquired a business or simply an asset or group of assets
- Selecting an appropriate valuation methodology
- Accounting for defensive assets
- Determining useful lives and amortization
- Considerations regarding pre-deal diligence