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Purchase Price Allocation Services in the UAE

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Purchase Price Allocation Services in the UAE

Know what you are really buying. Structure it right. Account for it clearly.

When you acquire a business, the purchase price is just the beginning. What really matters is how that price is broken down between tangible assets, intangible assets, liabilities, and goodwill. Here comes the role of Purchase Price Allocation (PPA), and that’s exactly what our purchase price allocation services are designed to handle.

Kreston ME Consulting makes sure that every component of your acquisition is accounted for in a way that’s defensible, transparent, and compliant with IFRS and UAE regulations.

 

What Is Purchase Price Allocation?

 

When one company buys another, the total purchase price paid is rarely just for physical assets or cash flows alone. There is often value in brand reputation, customer relationships, intellectual property, and even the workforce. PPA is the process of identifying and allocating the purchase price across all these identifiable assets and liabilities.

The way you allocate the price has a direct impact on your financial reporting, tax implications, and future earnings.

We mainly discuss:

    What percentage of the price paid should be considered goodwill?What portion relates to identifiable intangibles?Are any assets impaired at the point of acquisition?Will amortization impact your earnings profile post-acquisition?

We help you answer these with clarity.

 

When Should You Consider a Purchase Price Allocation?

 

You need a PPA when your company has:

  • Acquired or merged with another business
  • Made a significant asset or share purchase
  • Participated in a joint venture or business combination
  • Entered a complex transaction requiring post-deal accounting

For preparing financials for audit, aligning with IFRS 3 requirements, or simply trying to understand the true value of what you have acquired, PPA is non-negotiable.

Without a defensible PPA, you risk misreporting assets, misstating earnings, and attracting unwanted scrutiny from auditors or regulators.

 

KMEC’s Approach to Purchase Price Allocation

 

Our Purchase Price Allocation services UAE are thorough, based on valuation fundamentals, and built to withstand audit and investor review.

  • Step 1: Understand the Deal We start by understanding the nature of the acquisition, like what was bought, why it was bought, how the deal was structured, and so on. This gives context to the valuation and allocation process.
  • Step 2: Conduct a Fair Value Assessment We assess the fair value of all identifiable tangible and intangible assets acquired, as well as any assumed liabilities. This includes everything from equipment and inventory to trademarks, patents, contracts, and customer lists.
  • Step 3: Allocate the Purchase Price Once all assets and liabilities are valued, we distribute the total purchase price among the acquired components, with any remaining balance recorded as goodwill.
  • Step 4: Prepare an Audit-Ready Report We deliver a detailed, audit-compliant report that outlines the methodology and justifications behind each allocation. This is a document you can rely on in front of regulators, investors, and audit committees.
  • Step 5: Support Throughout the Review We collaborate with your auditors, legal teams, and accounting staff to clarify and substantiate our findings.

 

KMEC’s Strengths

 

KMEC is the trusted name across the UAE and GCC for purchase price allocation services Dubai, because:

  • Deep Valuation Expertise Our PPA work is built on a strong foundation of business valuation. For brand valuation, DCF modeling, or impairment testing, we bring precision to every number.
  • Regulatory Alignment Our reports are fully compliant with IFRS 3, IAS 36, and other applicable UAE and international standards. You can be confident that your reporting will hold up under scrutiny.
  • Sector Know-How From healthcare to hospitality, technology to trading, we understand how different sectors create and hold value. This allows us to assess intangibles with accuracy and credibility.
  • Clear Communication We make complex concepts understandable. In situations where you are presenting to a board or auditors, our reports make your case easy to explain and hard to dispute.
  • Proper Support We are with you from the first scoping call to post-report auditor meetings, providing all the support you need at any time.
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Faq

Usually 4–6 weeks, depending on the availability of deal documents, financials, asset details, etc.

We typically require the purchase agreement, financial statements, due diligence reports, fixed asset register, and details of any intellectual property, contracts, or customer data acquired.

Absolutely. Amortization of intangible assets can affect your profit and loss statements going forward. Getting the allocation right helps manage that impact effectively.

Yes. We regularly perform PPA engagements for UAE-based companies acquiring entities in other GCC countries, Europe, Asia, and beyond.