11/10/2020· Appraisal & Valuation
Case Study: Purchase Price Allocation for a Legacy Food Processing Facility
By: Jack Young
In an equipment appraisal for financial reporting purposes, the initial rough numbers were almost twice the purchase price. Because the enterprise had been on the market for a number of years and the purchase was an arm’s length transaction, that big difference between the preliminary calculation and the purchase price didn’t make sense … until we addressed functional obsolescence.