Goodwill or Purchase Price Allocation (PPA)

Determine the real value of your business

Acquisitions are a key strategy for growth and expansion. At Valoriza, we understand the importance of Goodwill and we are here to provide you with expert and personalized support in this fundamental process.
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What is Goodwill?

Goodwill," in accounting and financial terms, refers to an intangible asset that represents the additional value a company pays above the fair value of tangible net assets and other identifiable assets acquired in a purchase transaction from another company. In other words, it is the difference between the purchase price of a company and the book value of its assets and liabilities.

Its influence on the value of a company

It is important to note that Goodwill is an asset that is recorded in the balance sheet of the acquiring company and is subject to periodic impairment tests (Inpairment Test). If it is determined that the value of Goodwill has decreased due to changes in circumstances, an impairment loss must be recorded, which reduces its value in the balance sheet.

Why is Goodwill important?

  • 1
    Accounting Accuracy

    Goodwill is an intangible asset that represents the difference between the purchase price and the fair value of the net assets acquired. Its accurate calculation is essential to comply with accounting and regulatory standards.

  • 2
    Real Value Reflection

    It ensures that the true value of your acquisitions is correctly reflected on your balance sheet, which is critical for strategic decision making, investment attraction and accurate financial reporting.

  • 3
    Transparency and Compliance

    Complying with accounting and regulatory standards is essential to maintain the confidence of investors, business partners and regulators. Accurate calculation of Goodwill is a key element in achieving this compliance.