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Identification and valuation of intangible assets to determine the Purchase Price Allocation (PPA) for Financial Reporting Purposes

Client : A Listed Indian Pathology and Diagnostic Service provider

Service Offered : Due Diligence & Valuation

Sector / Industry : Healthcare

Client
Context
A listed Indian Pathology and Diagnostic Service provider (Client/Acquirer) had acquired a majority stake in a local pathology and diagnostic chain to strengthen the Client’s presence in Central India. The pathology and diagnostic chain’s business, comprising of 7 labs, 100+ collection centers, and 300+ Pick-up-Points, functioned under two legal entities -a proprietorship concern (the Proprietorship) and a partnership firm (the Firm) (collectively Targets), both owned and operated by a renowned doctor.
Client
Approach
  • Understanding the Business & Industry Dynamics and Identification of Intangible Assets
  • Evaluation of Valuation Approaches/Methodologies and Valuation of Intangible Assets
  • Purchase Price Allocation (PPA) and Accounting for the Transaction.
solution
Conclusion
Nexdigm’sholistic solution assisted the Client right from intangible asset identification till the Audit Review stage. Nexdigm’sproactive approach in preparing a PPA note in Phase I streamlined the audit process and minimized audit queries during the Audit Review.

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