According to SFAS 141r Business Combinations, companies must apply the purchase method of accounting for business combinations, including the mark-to-market of the target’s balance sheet. Part of the purchase method of accounting requires a core deposit study to determine the estimated useful life, amount of the core deposit intangible, and the appropriate method for amortizing the core deposit intangible. These accounting adjustments have a critical impact on gauging the financial success of a transaction.
Thorough Analysis = Sound Decisions
Appropriate determination of premiums and discounts applied to the balance sheet has significant regulatory capital and earnings ramifications to the acquirer. Thorough analysis of the mark-to-market adjustments on a transaction allows the management team of the acquirer to feel comfortable with its pricing and deal structure decisions. These decisions could potentially make or break a transaction.
Extensive Expertise
FinPro has been performing core deposit intangible studies for more than a decade in transactions ranging from $20 million to well over $500 million. FinPro’s core deposit intangible analyses have been approved by many regional and national accounting firms.
Capacity for Timely Execution
With a group of experienced managing directors, all skilled in asset and liability valuation, FinPro has the ability to provide a complete and timely analysis to meet challenging timelines. FinPro provides SFAS 141R valuations as part of its financial advisory services on a transaction or as an independent third party.
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