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ASC 805 Valuation Update: Social Gaming

The Social Gaming has been one of the most active sectors for M&A transactions in the global technology industry.

With the promise of significant growth and almost immediate profitability,social game developers provide for attractive acquisition targets in buy vs. build strategy.  Please download our summary by clicking on the image below.

While M&A activity is robust, little public information is available about the values of individual intangibles acquired.  Most deals are relatively small or completed by private players, thus limiting the amount of accessible information.  This update presents both public and our proprietary ASC 805 valuation data.

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More Updates

Intellectual Property, Goodwill, and Other Intangible Assets

The predominant amount of S&P 500 value comes from intangible assets and goodwill (“Intangibles”) of the underlying companies. It is no surprise that patents and brands are more valuable than desks. Understanding the components of intangible value is of great relevance to tax authorities and financial stakeholders.

Many Ways to Define Business Value

“Our business is worth $10 million,” they said.  So the buyer only needed $6 million cash to buy it. There are many ways to talk about what a business is worth.  In the above example, $10 million can be Business Enterprise Value, while $6 million is the value of equity.  The buyer assumed a $4 million bank loan. Here are

Balance Sheet Matters in Business Valuation

Can you find a business valuation estimate on a financial statement? The balance sheet contains the book value of equity, which is the first approximation of what the company is worth.  The number would actually be pretty good if it weren’t for unaccounted-for intangible assets and goodwill.  For recently acquired companies, the book value of equity is exactly fair market

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