Stout released its 2025 Purchase Price Allocation (PPA) Study, offering the most comprehensive analyses of goodwill and identifiable intangible asset valuation in M&A. The study, based on an in-depth review of 5,346 filings and 183 transactions closed in Q4 2024, provides benchmarks that companies can use to assess purchase consideration and ensure compliance with financial reporting standards.

Stout’s PPA Study highlights how companies are allocating goodwill and intangible assets across different industries as a percentage of enterprise value.

Key Findings From the 2025 PPA Study

• Transaction Activity: 183 transactions closed in Q4 2024, up from 175 in Q4 2023, with Consumer sectors seeing increases and Communication Services, Energy, and Health Care experiencing declines.

• Enterprise Value Trends: Median enterprise value rose for Communication Services, Consumer Staples, Industrials, and Materials, while it declined for Consumer Discretionary, Energy, Health Care, and Information Technology.

• Contingent Consideration: Use of contingent consideration declined, appearing in 22.4% of Q4 2024 transactions (19.9% of enterprise value) compared to 32.0% in Q4 2023 (17.5% of enterprise value).

• Non-Competition Agreements: Non-Competition Agreements were included in fewer transactions in Q4 2024 (14 transactions, 3.8% of intangible assets) compared to Q4 2023 (12 transactions, 9.3% of intangible assets).

“Goodwill and intangible assets in M&A transactions are a pillar of value creation, particularly in industries where innovation, technology, and customer loyalty are key drivers of growth,” said Will Chronopoulos, Senior Vice President at Stout. “Our study offers companies the tools they need to stay competitive while adhering to evolving regulatory expectations.”

“Stout’s 2025 PPA Study is an invaluable resource for corporate executives, financial professionals, and advisors looking to navigate the complexities of purchase price allocation,” added Shishir Khetan, Managing Director at Stout. “By offering detailed benchmarks and industry-specific trends, the study equips companies with the knowledge needed to make informed decisions.”

The insights provided in Stout’s 2025 PPA Study underscore the role of goodwill and intangible assets in driving enterprise value. As businesses face regulatory scrutiny and market challenges, Stout remains committed to delivering insights that help organizations achieve sustainable growth.

View the Purchase Price Allocation study.