Authored by: CA Punit Khandelwal, CA Sunit Khandelwal, Prof. Divya Aggarwal (MDI, Gurgaon; ex-professor IIM, Ranchi) and CA Akshat Jain
Assisted by: CA Yash Saraswat, Sumit Singla, Aastha Parsawar, and Eshank Maurya
We are pleased to present the fourth edition of Incwert’s Purchase Price Allocation Study in India, covering transactions from FY2017 to FY2025.
This study is based on an analysis of 1,320 completed transactions derived from publicly available filings. The findings are presented across key dimensions, including the classification of intangible assets, transaction size, frequency of occurrence of intangibles across industries, contingent consideration, and estimated useful lives.
The allocation of purchase consideration in business combinations (Ind AS 103) has a significant impact on the financial reporting of acquiring entities. As a result, such allocations are subject to heightened scrutiny from management, auditors, regulators, and investors.
As an independent valuation advisory firm, we recognise that valuation continues to evolve through both practical application and academic research. However, many high-quality research insights remain underutilised due to limited accessibility among practitioners. Through this study, we aim to bridge this gap and contribute to the broader adoption of robust valuation practices.
Given the limited availability of India-specific benchmarking data in the public domain, this report seeks to provide a practical reference point for stakeholders involved in purchase price allocation exercises.
We hope you find this study insightful and valuable.