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Frequently Asked
Questions
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Assignments often include tangible assets like machinery, equipment, vehicles, and inventory, as well as the valuation of the acquired business itself. Reports are developed in accordance with recognized professional standards and are designed to withstand auditor and regulatory review.
Asset types commonly valued in a purchase price allocation
We perform valuations across a wide range of tangible and operating assets, including:
- Machinery & Equipment: medical equipment, construction equipment, trucks, trailers, laboratory equipment, CNC machinery
- Inventory: warehouse stock, raw materials, work-in-process, and finished goods
- Vehicles: cars, buses, specialty vehicles, boats, and marine equipment
- Business Interests: valuation of the acquired entity using financial performance, market evidence, and transaction context
Who we work with
Our purchase price allocation clients typically include:
- Private equity firms
- Corporate finance and accounting teams
- Business owners and acquirers
- Attorneys
- Accountants and auditors
- Companies preparing post-transaction financial statements
Why are equipment and machinery valuations important for purchase price allocation?
Following a transaction, consideration must be assigned to identifiable assets. Physical assets rarely have observable public prices that align with accounting requirements.
Independent valuations help establish defensible amounts for categories that affect depreciation, future earnings, and audit review. A well-supported analysis provides clarity to management and confidence to third parties evaluating the allocation.
When is an inventory valuation needed after an acquisition?
Inventory balances can materially influence margins and subsequent financial performance.
An independent analysis may consider salability, condition, turnover, and economic utility to ensure values used in financial reporting are reasonable. Auditors frequently expect documentation supporting how inventory amounts were derived.
Is a business valuation required for purchase price allocation?
Often, yes.
The overall enterprise value, along with the identification of tangible and intangible components, provides the foundation for allocating total consideration. Independent analysis helps support the framework management uses in financial statements and during audit procedures.
Who engages the valuation firm for a purchase price allocation?
Engagement is typically initiated by the acquiring company or its advisors.
While many stakeholders may rely on the work — including auditors, lenders, and regulators — the valuation professional provides an independent opinion developed under recognized professional standards.
When should valuation work begin?
Many organizations start during due diligence so planning can occur early, though final analyses typically reflect information available after closing.
Beginning promptly helps ensure reporting deadlines are met and reduces pressure on finance teams.
Can auditors rely on independent valuations?
They frequently do.
Third-party reports can provide important support for management’s conclusions, particularly where material balances or judgment areas exist. Specific documentation needs are often coordinated in advance.
How long do purchase price allocation valuations take?
Timelines depend on asset volume, data quality, and complexity.
As a general guideline:
- Equipment and inventory valuations often take 1–2 weeks when performed remotely and longer if site work is required.
- Business valuations commonly require 2–3 weeks.
Rush services are available when transaction reporting deadlines are tight.
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