Monday, January 21, 2019
Differences in Earnings Releases and 10-Ks

Wednesday, January 16, 2019
The Importance of Textual Analysis

Tuesday, January 8, 2019
A Look at Climate Change Disclosures

Wednesday, January 2, 2019
Quants: Point-in-Time Data for Backtesting

Friday, December 28, 2018
Now Showing: Controls & Procedures

Thursday, December 27, 2018
A Reminder on Non-GAAP Reporting Rules

Monday, December 17, 2018
Researching PG&E’s Wildfire Risk

Wednesday, December 12, 2018
Tracking Brexit Disclosures

Thursday, December 6, 2018
Campbell Soup: Looking Behind the Label

Sunday, December 2, 2018
SEC Comment Letters: The Amazon Example

Wednesday, November 28, 2018
Measuring Big Pharma’s Chemical Dependency

Monday, November 26, 2018
Analysts, Can You Relate? A True Story

Monday, November 19, 2018
Digging Up Historical Trend Data: Quest Example

Sunday, November 11, 2018
Cost of Revenue, SG&A: Q3 Update

Monday, November 5, 2018
Lease Accounting: FedEx vs. UPS

Saturday, November 3, 2018
New Email Alerting Powers

Wednesday, October 31, 2018
PTC and Two Tales of Revenue

Tuesday, October 30, 2018
10-K/Q Section Text Change Detection

Sunday, October 28, 2018
Finding Purchase Price Allocation

Sunday, October 21, 2018
Charting Netflix Growth in Three Ways

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Let’s Talk About Purchase Price Allocation
Wednesday, November 9, 2016

General Electric filed its third-quarter earnings statement today ($29.26 billion in revenue, $1.95 in net income) and as part of its filing, gave an update on its $13.7 billion acquisition of Alstom’s power generation business last year. Specifically, GE explained how it is parceling out the cost of that acquisition among line-items on its balance sheet.

That update gives us an excellent opportunity to introduce yet another database to Calcbench customers: our trove of data on purchase price allocation, going all the way back to 2010.

For all acquisitions of any appreciable size, the acquirer reports how it will divvy up the purchase price among line-items such as goodwill, liabilities, intangible assets, and noncontrolling interests. Thanks to our database superpowers here, Calcbench can provide line-item detail on every acquisition back to 2010, on the amounts allocated to items including (but not limited to)…

  • Assets acquired: intangibles, inventories, accounts receivable, cash, goodwill, PPE (property, plant & equipment);
  • Liabilities assumed: impairments, accounts payable, long-term debt, deferred revenues, contingencies;
  • Other goodies too, such as useful life of the assets and links back to source documents.

And all our reports can be presented in crisp, easy-to-understand Excel spreadsheet format, too.

So how do Calcbench subscribers get all this purchase price allocation data? All you need to do is ask—but you do need to ask, since we can fine-tune the data quite a bit. We can provide aggregate data over time, or do sector-specific analysis, or search for specific line-items that pique your interest, and so forth.

Why This Data Is Useful

How a company allocates the purchase price of an acquisition offers a window into management’s thinking. Financial analysts can use this tool to perform better valuation analysis; identify weaknesses or strengths in the balance sheet; create more accurate projections of future impairments, costs or revenue; and more.

M&A specialists and CFOs can use our data to benchmark your own deals. Our deep pool of historical data can also test whether the original rationale for a merger was proven correct over time. It can help you allocate a the purchase price more wisely and accurately, leading to better reception of the deal among stakeholders.

Academics and other accounting researchers can also use this data. Studied in aggregate (which Calcbench can provide), purchase price allocation data can find larger trends in an industry sector or in corporate financing.

So if you’re curious, ask away.

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