Building Materials
INDUSTRY
500
EMPLOYEES
$250M
ANNUAL REVENUE
Goodwill Remeasurement
VIP SOLUTIONS CASE STUDY
BACKGROUND
Within the measurement period (1 year of acquisition), our client required re-measurement of goodwill by virtue of valuation adjustments to acquired assets and conveyed liabilities.
OBJECTIVES
Evaluate losses incurred which were attributable to assets acquired and measured in the PPA.
Evaluate subsequent collections applicable to acquired assets.
Identify inventory impairments for excess, aged, damaged, obsolescence, and LCM for applicable to acquired assets.
Identify expenses incurred attributable to the period prior to acquisition and not measured in the PPA.
SOLUTIONS
Accumulated supporting documentation and developed analyses to support our positions to management and auditors on recommended adjustments.
Prepared memo communicating background, analysis, adjustments, methodology and conclusions.
Successfully argued our position of identifying, evaluating and quantifying adjustments within the measurement period.
Identified over $5M of goodwill adjustments
which would otherwise have been recorded to EBITDA.
This protected $40M of enterprise value.
which would otherwise have been recorded to EBITDA.
This protected $40M of enterprise value.
