Aranca: Driving Seamless Customer Experience in Purchase Price Allocation

Aranca sets itself apart in the realm of Purchase Price Allocation (PPA) by seamlessly blending precision with exceptional customer service. From collaborative kick-off calls to customized information checklists and meticulous legal document reviews, Aranca ensures accuracy at every step. Proactively involving auditors and incorporating feedback from all stakeholders, Aranca fosters transparency and trust throughout the valuation process. With a commitment to minimizing client burden and delivering peace of mind, Aranca's customer-centric approach makes it the preferred partner in the high-stakes world of mergers and acquisitions.

The purchase price allocation (PPA) exercise is crucial to understand the financial impact of M&As, and ensure accurate valuation and allocation of the purchase price among the acquired company's assets. Aranca, a leading provider of valuation and research services, goes far beyond providing an accurate analysis. With a commitment to exceptional customer experience, Aranca streamlines the PPA process, offering customized solutions and seamless collaboration throughout the valuation exercise. Let us explore how Aranca can enable a smooth PPA exercise.

Conducting a Kick-off Call:

Aranca begins by conducting a kick-off call with the client to understand the transaction economics, rationale, and high-level approach. This initial discussion sets the foundation for a collaborative partnership and ensures alignment on goals and expectations.

Customizing Information Checklist:

After gaining an understanding of the transaction and scope, we share a customized information checklist with the client to facilitate efficient valuation analysis. This checklist highlights information that is critical for the valuation exercise. By clearly communicating the data and documentation needed, Aranca ensures a streamlined information-gathering process.

Getting Information Requests and Clarifications:

Within 1–2 business days, any additional information needs or gaps in the provided data is identified. By proactively seeking clarifications from the management, Aranca makes sure that no crucial details are overlooked, enhancing the accuracy of the valuation analysis.

Reviewing Legal Documentation:

Aranca's team meticulously reviews share purchase agreements, disclosure schedules, and other relevant information. By analyzing these documents, the company identifies intangible assets that require valuation. This comprehensive review helps ensure all the necessary intangible assets are captured.

Sharing the Approach Note:

Aranca shares an approach note with the client, explaining the rationale for identifying intangible assets and relevant valuation methodologies. This transparent communication guarantees the client understands the logic and reasoning behind the valuation approach. At this stage, we also share an approach note with the auditors.

Collaborating with Auditors:

Recognizing the importance of auditors' involvement, Aranca proactively connects with them at the initial stage. This collaboration aims to form a consensus on the valuation approach and the intangible assets identified. By involving auditors early on, potential concerns or discrepancies can be addressed promptly, avoiding delays or issues later in the process.

Incorporating Feedback and Finalizing Analysis:

Aranca actively seeks feedback from both the auditors and the client. The company discusses the valuation approach and incorporates any necessary revisions or suggestions. This iterative process ascertains the final analysis meets the expectations and requirements of all stakeholders involved.

Sharing the Valuation Model and Note:

Once a consensus is reached, Aranca shares the valuation model and valuation note with the management. This enables the client to review and validate the results, ensuring transparency and building trust in the valuation process. Subsequently, the valuation model and note are also shared with the auditors, fostering collaboration and alignment.

Providing Timely Responses to Audit Queries:

During the audit review, Aranca proactively responds to any queries or requests from the auditors. Its commitment to timely communication helps maintain a smooth and efficient review process. Aranca assists in resolving any audit queries through calls and/or emails, and the audit reviews are generally completed within a week or two.

Finalization Stage:

After the client and auditor's approval, a final detailed report is shared, laying out all the aspects of the analysis and concluding the PPA exercise. Aranca follows a rigorous review framework, where the valuation analysis is presented to a valuation committee comprising individuals with over 15 years of experience. Additionally, the analysis and deliverable go through three different layers of check.

Aranca's Customer-focused Approach:

Aranca differentiates itself by adopting a partnership approach rather than being a typical service provider. Our commitment to driving customer experience guarantees clients receive not only accurate and comprehensive valuations but also exceptional service throughout the PPA exercise. Aranca takes the lead in project management and also minimizes the time spent by our customers.

Conclusion:

Aranca stands out for its customer-centric approach in the field of PPA. By proactively communicating with the client and auditors, Aranca makes sure that all relevant information is gathered and potential concerns are addressed early in the process. The iterative feedback process guarantees the valuation analysis meets the expectations of all stakeholders, encouraging trust and confidence in the results. Aranca's commitment to delivering accurate valuations and driving superior client satisfaction makes it a preferred partner.