Ankura is pleased to present the findings of our analysis of the allocation of the purchase price of software and services companies from 2016 to 2018 by US-based companies. Key takeaways are as follows:

204 TRANSACTIONS ANALYZED
AVERAGE PURCHASE PRICE ALLOCATED TO GOODWILL WAS 63%
CUSTOMER RELATIONSHIP AND DEVELOPED TECHNOLOGY INTANGIBLES HAD SIMILAR ALLOCATION PERCENTAGES AT 17%
DEVELOPED TECHNOLOGY HAD A SHORTER LIFE THAN CUSTOMER RELATIONSHIPS (5 VS. 9 YEARS)

100%
Customer relationship

100%
Customer relationship