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.