Name: Intangible Asset Valuation and Purchase Price Allocation Model (IFRS 3, IVS 210: MPEEM, Relief from Royalty, Goodwill and WARA)
Brand: eFinancialModels
SKU: 661877
Availability: InStock

Asset Management, Business Consulting Services, Financial Model, Financial Services, General Excel Financial Models, Professional Services & Advisory

Accounting, Brand, Business Valuation, Dashboard, DCF Model, Discount Rate, Excel, Financial Analysis, Financial Model, Financial Modeling, Financial modelling, Financial Projections, Financial Reporting, Goodwill, Impairment Test, Intangible Assets, IRR (Internal Rate of Return), Know-How, Patent, Replacement Cost, Scenario Analysis, Sensitivity Analysis, Terminal Value, Valuation, WACC (Weighted Average Cost of Capital)

What is this model used for?

When one company buys another, the price paid has to be split between the assets acquired: net assets at fair value, each identifiable intangible asset, and goodwill. This is the purchase price allocation, or PPA, required by IFRS 3 and similar standards. This template runs the whole exercise, from the consideration paid down to goodwill, using the methods set out in IVS 210 Intangible Assets.

Most templates you will find stop at a single relief from royalty calculation. This one is built for the full job a valuer, auditor, or deal team has to deliver. Use it to prepare a PPA report, to review a client’s allocation, to close the accounting for an acquisition, or to learn intangible valuation on a complete working example. The sample deal is in USD and every figure can be replaced with your own.

What is included?

One Excel workbook with 21 linked tabs:

Cover, Instructions, and an Input Checklist with 16 items
IVS Guide: every method mapped to its IVS and IFRS reference, when to use it, and where it sits in the model
Dashboard with the allocation and key judgements on one page, plus a Charts tab with six charts
Deal Inputs, PFI Inputs, and Intangibles Inputs
Timeline, Discount Rates, Business Forecast, Workforce, and Contributory Assets
Customer MPEEM, Technology RRM, Brand RRM, and Non-Compete
Purchase Price Allocation, Sensitivity, and Checks

What it values, and how

Customer relationships on the multi-period excess earnings method (MPEEM): attrition, growth from existing customers, marketing and R&D add-backs, and a useful life test
Contributory asset charges for working capital, fixed assets, assembled workforce, technology, and brand
Technology on relief from royalty, using up to 6 comparable licences with a median, average, low, or high rate, and a cost approach cross-check
Brand or trade name on relief from royalty, with an indefinite or a finite life
Non-compete agreement on the with-and-without method, weighted by the probability that the seller would compete
Assembled workforce at replacement cost by employee group, used as a contributory asset and kept inside goodwill

Main features

A 15-year market participant forecast, with enterprise value at WACC and the implied IRR of the price paid
A discount rate for each asset: WACC build-up plus a premium or discount by asset
Tax amortization benefit calculated in closed form with mid-year discounting, so there is no circular reference
Deferred tax liability on fair value step-ups, goodwill as the residual, and a bargain purchase warning
WARA reconciliation: WACC, IRR, and the weighted average return on assets side by side, with a test that goodwill carries the highest implied return
Each intangible can be switched on or off
Base, Downside, and Upside scenarios on growth, margin, attrition, royalty rates, and discount rates
Two live sensitivity grids: customer value by attrition and discount rate, and technology value by royalty and discount rate
12 integrity checks that must read ALL OK before a report is issued

How to work with the template

Save a copy and read the Instructions and IVS Guide tabs.
On Deal Inputs, enter the consideration, the net assets acquired with fair value adjustments, tax settings, and the WACC build-up.
On PFI Inputs, enter base year revenue and the 15-year forecast. On Intangibles Inputs, enter attrition, royalty comparables, lives, the non-compete terms, and the workforce data.
Confirm the Checks tab reads ALL OK, review every warning, and read the Purchase Price Allocation tab, starting with the WARA check.

You type in yellow cells only. All formulas are visible and no cell is locked, so a reviewer can trace every figure back to its input.

Why you need this model

A PPA is judged on whether it hangs together. An auditor will ask why the customer relationships are worth what you say, whether the royalty rate has support, and whether the returns on the assets reconcile to the price paid. This model is built around those questions. Every asset value ties back to the deal through the WARA reconciliation, and the IVS Guide tab shows the reviewer which standard each step follows.

Technical notes

15 annual periods
Excel 2010 or later and Google Sheets
No macros, no circular references, no data tables, no external links, no merged cells
References are to the International Valuation Standards effective 31 January 2025
The template supports, but does not replace, professional valuation judgement

Licences

Free PDF Preview: shows the layout and outputs before you buy
Excel Model, Business Licence: for use inside your own company
Excel Model, Consulting Licence: for use on client engagements

About the author

Built by Ahmad Din, ACCA, FMVA, AFM, a corporate finance and transaction advisory practitioner with 12+ years of experience across Saudi Arabia, the GCC, and Pakistan, and the founder of Financial Modeler Pro. Custom versions of this model are available on request through eFinancialModels.

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