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:
204TRANSACTIONS ANALYZED
AVERAGE PURCHASE PRICE ALLOCATED TO GOODWILL WAS63%
CUSTOMER RELATIONSHIP AND DEVELOPED TECHNOLOGY INTANGIBLES HAD SIMILAR ALLOCATION PERCENTAGES AT17%
DEVELOPED TECHNOLOGY HAD A SHORTER LIFE THAN CUSTOMER RELATIONSHIPS(5 VS. 9 YEARS)