Today’s most innovative organizations are seeking to unlock greater value from acquisitions, especially those involving complex corporate arrangements. A more robust focus on valuation early in the deal process will help uncover potential biases or oversights that could result in mispricing a deal. Taking a combined approach that integrates a focus on industry issues — and the range of variables impacting value — helps meet the challenges of today’s dynamic deal environment. That way, you can strive for greater insight into value drivers to help inform your deal decisions.
Source: PwC webcast on “How deals have changed: Lessons learned from applying the revised M&A accounting standards”, January 2011
Regulators are also demanding greater transparency through fair value reporting, putting more emphasis on the importance of valuation and value analysis. However, valuing acquisitions for financial reporting purposes involves more than determining “a number to book” for your transaction. An effective pre-acquisition valuation is performed during the due diligence phase will help you assess the accretive or dilutive impact of a transaction. This type of analysis can be converted into a post-deal valuation to help address financial reporting and tax needs as well.
PwC’s valuation specialists can help you perform a robust valuation analysis early in the deal process, including assistance with building better deal models. We offer a distinctive solution that integrates valuation advice with accounting, tax and risk management experience. The result is you get the advice you need to realize greater value and help transactions close more smoothly.
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Click here to learn how one company was able to effectively document fair value for both tax and financial reporting purposes.
of dealmakers see potential value in including contingent consideration in a future deal.
Source: PwC webcast poll