Purchase Price Allocation
Offering both U.S. (ASC 805) and International (IFRS 3) compliance
Specialization in real estate
Unlike most other firms, we completely specialize in performing purchase price allocation studies for real estate acquisitions. Our clients include public and private REITS, real estate investment partnerships, trusts, and anyone else requiring GAAP financials for one or more of their real estate acquisitions.
COST SEGREGATION SERVICES
We offer cost segregation services for tax purposes through a partner firm. If we are doing your GAAP work, please ask for a referral for coordinated cost segregation services as we can typically save you over thirty percent what other providers charge due to the efficiencies and shared data involved.
Real estate has many asset types on the balance sheet
Tangible Assets
Land
Buildings (as if vacant)
Site Improvements / Land Improvements
Unamortized Tenant Improvements (TIs)
Furniture, Fixtures, and Equipment (FF&E)
inTangible Assets / Liabilities
In-Place Lease Value
Above/below market leases
Above/below market debt
Favorable/unfavorable contracts
Customer relationships (uncommon)
Pre-booked revenue (hospitality)
Tax abatement benefits
Unfavorable tenant purchase options
Parking rights in unowned spaces
Business Combinations (ASC 805)
Most real estate acquisitions will be recorded as Asset Acquisitions rather than Business Combinations as ASU 2017-01 implementation rolls out. The language of ASC 805 sets out the rules for identifying and separately measuring all identifiable assets and liabilities present in an acquisition.
Fair Value Measurements and Disclosures (ASC 820)
According to ASC 820, fair value is defined as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."
DEEP EXPERIENCE
Our professionals have deep experience preparing real estate purchase price allocation studies specifically, and in real estate in general. We have logged thousands of hours on the audit side of the table and have evaluated every type of property and structure imaginable.