Analysis of the Purchase Price Allocation in the analog and mixed signal semiconductor market.
Promotor(s) : Streel, Alexandre
Date of defense : 19-Jun-2020 • Permalink :
|Analysis of the Purchase Price Allocation in the analog and mixed signal semiconductor market.
|Translated title :
|[fr] Etude du "Purchase Price Allocation" dans le marché des semi-conducteurs à signaux analogiques et mixtes
|Date of defense :
|Committee's member(s) :
|Number of pages :
[en] Purchase Price Allocation
[en] Intangible assets
[en] Analog and mixed signal semiconductor market
|Business & economic sciences > Accounting & auditing
|Université de Liège, Liège, Belgique
|Master en sciences de gestion, à finalité spécialisée en management général (Horaire décalé)
|Master thesis of the HEC-Ecole de gestion de l'Université de Liège
[en] When buying a company, the acquirer analyses and estimates each asset and liability of the
target company in order to fix a reasonable purchase price and, later on, to integrate the acquired
assets and assumed liabilities into the consolidated balance sheet. Furthermore, the breakdown of
the purchase price, called the purchase price allocation, has an important future influence on the
financial values of the combined entity and is specific to each market.
The aim of this dissertation is to analyse the purchase price allocation in the analog and mixed
signal semiconductor market based on a database of more than fifty European and American acquisitions by the main market players between 2010 and 2019. Due to the more subjective aspect
of the intangible assets (technology, customers, trade names,...) and of the goodwill, i.e. the difference between the agreed purchase price and the fair value of the target company, a focus has been
set on their value, their amortisation period, their justification and dependencies.
First, the main trends of each interesting element of the purchase price allocation have been
observed. The goal is to understand what an acquisition and its purchase price allocation in this
technical market are typically like. Table 1 represents an acquisition sheet of a fictive target and
shows the average values and the most frequent justifications of each individual element. It has
also been shown that some values as for example the allocation to technology based intangible
assets depend on the acquisition size whereas other values such as assets related to the trade names
or the trademark do not. The activity of the target is also a source of dependence for the allocation
of intangible assets as well as the goodwill estimation. However the justification of goodwill does
not justify different goodwill values. Finally this analysis allowed us to understand the acquisition
strategy of some acquirers, some are customer driven while others prefer targets with promising
It is hoped this study will help acquirers as well as financial analysts understand the purchase
price allocation in this specific market.
Cite this master thesis
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