Valuation Principles and Working with Earnouts
M&A Science
00:00
The Importance of Valuation in Acquisitions
For public companies, there's lots of different things to think about. At the time of an acquisition, you've got to do something called a purchase price allocation where you allocate a purchase price to various assets and liabilities that you have acquired. Subsequent to the acquisition, you may have to test for impairments. It doesn't impact write offs or taxes as much. But I get it. Impairments are a thing. And that's like the thing you want to avoid is having the impairments,. any other things like that I should know valuation wise.
Transcript
Play full episode
