3 Things to Know About Healthcare Acquisitions and Allocation of Purchase Price

Healthcare and seniors housing owners and operators making acquisitions must allocate the purchase price among various asset classes. Here are three things to know about allocation of purchase price, according to Principle Valuation.

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1. The assets the purchase price may be allocated to include real estate (land and improvements), equipment, intangibles and business enterprises.

2. Purchase price allocation is essential to setting up financial records and complying with ASC 820 fair value measurements and disclosures.

3. During the allocation process, it’s also possible to pinpoint opportunities to strengthen finances through real estate tax matters, determination of insurable values and various depreciation and amortization rules.

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