cocolosa.blogg.se

Figure 1, below, shows the purchase price allocation as reported in the 10-K, filed on Oct.

In its disclosures about business combinations, Walgreens reported the purchase price allocation for its acquisition of VillageMD, a chain of primary care medical practices often set up right next door to a Walgreens. We noticed this with Walgreens’ latest annual report, filed on Thursday. Now Walgreens Boots Alliance ($WBA) has given us another point to ponder about purchase price allocation: that those allocation numbers can change over time. That’s exactly what happened with the Slack deal, where eight months after the deal was announced, Salesforce disclosed that $21.1 billion of that $27 billion number was allocated to goodwill. It’s not at all unusual to see a huge deal announced in the headlines - say, Salesforce ($CRM) acquiring Slack for $27.7 billion, which happened in 2020 - only to find out many months later that much of that headline price was allocated to goodwill. Loyal readers of this blog know that Calcbench loves to talk about purchase price allocation, which is how a company discloses all the details when it spends piles of money to acquire a business.