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 5,346 filings, providing purchase price allocation benchmarks for the fourth quarter of 2024.

Key Findings

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