Financial Reporting – Allocation of Purchase Price/Impairment
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Healthcare and seniors housing owners and operators that make an acquisition are required to allocate the purchase price among various asset classes in order to comply with Generally Accepted Accounting Principles (GAAP) including FASB ASC 805 (Business Combinations), FASB ASC 820 (Fair Value Measurements), FASB ASC 350 (Intangibles – Goodwill and Other), and FASB ASC 360 – (Impairment or Disposal of Long-Lived Assets). These reports are also essential in setting up financial records.
Principle Valuation provides the comprehensive and accurate allocation of the purchase price for the following asset classes:
- Real estate (land, buildings and improvements)
- Leasehold interests and improvements
- Furniture, fixtures and equipment
- Intangible assets, including tradenames, assembled workforce, medical records, Certificate of Need (CON), provider contracts, net operating loss carryforwards, customer relationships, non-compete agreements and minority equity interests owned
Based on our national scope and expertise, we have had our work reviewed and accepted by most major accounting firms.
Healthcare and seniors housing entities turn to us for allocation of purchase price studies because:
- They trust that our reports will be accurate and fair, and will be performed in a timely manner
- Our reports are performed by professionals with specific expertise in the healthcare and seniors housing sectors who hold designations such as ASA, CFA, CPA and MAI
- Our professional staff have specific expertise in all healthcare and seniors housing asset classes, including real estate (land and improvements), equipment, and intangible assets
- Valuation for financial reporting, including the allocation of the purchase price to the real estate, equipment, CON’s, trademarks, Medicare licenses and other intangible assets for a publicly traded healthcare company with 62 hospitals in 29 states
- Valuation of a regional hospital and its related entities for financial reporting based on an Affiliation Agreement with a larger hospital system
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