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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

Financial Forecast For Purchase Price Allocation (ASC 805/IFRS 3)

This article covers several key factors to consider when building a financial forecast or projected financial information (PFI).  This guidance is designed for financial forecasts used in purchase price allocations, i.e., valuation of intangible assets as part of purchase accounting under US GAAP ASC 805 and IFRS 3.  Here are a few requirements:   PFI has to be long enough

Shadow Preferred Stock Devalues Convertible Note

Convertible notes are starting to resemble CDOs, collateralized debt obligations that led to the 2008 financial crisis, partly because few understood how they worked. From the economic perspective, convertible notes are complex; that includes Simple  Agreements for Future Equity (SAFEs). In fact, they are referred to as “complex financial instruments” by auditors and financial regulators.  A typical convertible note is

What M&A Purchase Consideration Is Actually Worth?

Most M&A pricing efforts are focused on valuing an acquired business. Essentially no consideration is given to the value of assets an acquirer is giving up in a transaction. We will attempt to clarify some of these issues.

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