Key Findings

• For Q4 2023 transactions, goodwill represented 47.5% of enterprise value, demonstrating its growing significance in M&A valuations.
• 23.3% of Q4 2023 transactions included contingent consideration, averaging 15.7% of enterprise value, indicating an increasing trend toward performance-driven M&A negotiations.
• Goodwill as a percentage of enterprise value increased in several sectors, including Energy, Health Care, Industrials, and Information Technology, underscoring its role in value determination across industries.

As one of the most comprehensive studies of its kind, our latest Purchase Price Allocation (PPA) Study offers benchmarks that companies can use to assess purchase consideration and help ensure financial reporting compliance.

The report examines how companies allocated goodwill and key identifiable intangibles across different industries as a percentage of enterprise value.

This study is based on an analysis of 130,417 filings and 5,203 transactions, providing purchase price allocation benchmarks for the fourth quarter of 2023 and for the last five years as of December 31, 2023, for 47 industry sectors and subsectors.