When companies acquire other companies they report how the money they paid was allocated to the different assets purchased, a process called Purchase Price Allocation.
Below are example of Purchase Price Allocation from Calcbench. You can see value assigned to the various assets. Do you agree with the useful life they assigned to the assets? Here is the Purchase Price Allocation for Merck’s (MRK) acquisition of Cubist last year:
Below is the Purchase Price Allocation for Adobe’s (ADBE) purchase of Omniture a few years ago:
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