Value drivers in IP - Whose in the driver's seat?

Intangible assets, led predominantly by Intellectual Property (IP) such as technology, brands, and data, have grown in their influence on the economic performance of companies. This is evidenced by the fact that net tangible assets represent only 5% of Nasdaq's value and 37% of ASX's value. When companies engage in mergers and acquisitions (M&A), post-completion, they must undergo a Purchase Price Allocation (PPA) exercise. This process entails distributing the purchase consideration across all assets of the acquired business, including IP, other intangible assets, property, plant, and equipment.

Its Significance

The increasing dominance of intangible assets, especially in the technology sector, has reshaped how companies are valued. Understanding the allocation of purchase price, particularly in significant tech company acquisitions, provides insights into the valuation of assets and the drivers of economic performance in modern industries. It can also inform future M&A strategies and valuations.

Expected Solutions

Research is sought on the purchase price allocations for the top 10 largest tech company acquisitions by public companies from 2019 to 2021. The solution should present a comparison and contrast of the breakdowns of the PPA allocation for each of these acquisitions, shedding light on how value is perceived and attributed in contemporary tech business transactions.

Seeking Partnership with experts in

Mergers and Acquisitions (M&A) Accounting, data analysis, predictive modelling and Undergraduate first and second year students

Proposed Start Date

Term 1 2024