Identification and Valuation of Intangible Assets on a Business Acquisition

The UAE has always been a strong centre for international trade and has often been recognised as a bridge between the East and the West. The country is fast emerging as a breeding ground for start-up businesses. At the other end of the spectrum, maturing and consolidation of local businesses has resulted in increased M&A and private equity activity in the region. This is leading to the creation of business combinations, whether by way of acquisition of shares or of business and net assets.

In all such scenarios of buy-sell and Mergers and Acquisitions (M&As), ascertaining the correct value of the organisation’s assets, including the intangible ones is very important. International Financial Reporting Standard 3: ‘Business combinations’ (IFRS 3) requires recognition and reporting of identifiable intangible assets separately from goodwill, in the buyer’s consolidated financial statements

Our Management Consulting team has extensive experience in identification and measurement of intangible assets, contingent liabilities and onerous contracts acquired in a business combination. Our involvement assures our clients and third parties and their auditors of a rigorously followed process that is free of any biases.

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