Aranca's PPA Benchmarking Tool uses filters, such as industries, keywords, years, and transaction size, to narrow down relevant acquisition transactions. Users can input specific criteria and parameters to refine their search and obtain customized results. The tool then provides information on the composition of purchase consideration (PC), goodwill as a percentage of PC, intangible assets (specific and total) as a percentage of PC, the useful life of assets, and discount rates based on the selected transactions.

• • Aranca’s PPA Benchmarking Tool allows you to dynamically analyze the results based on your required specifications in real time. For example, you can run filters on the deal sizes and deal years to enhance the result more suited to your needs.
• • Aranca’s PPA Benchmarking Tool allows you further to analyze your required industry at the sub-industry level. For example, you can benchmark your analysis into the Consumer finance sub-industry instead of just benchmarking at the Financial Industry level.
• • Aranca’s PPA Benchmarking Tool allows you to customize your results further to get results that are more suited to your requirements. For example, you can filter to see only the transactions that include the Contingent consideration as a method of payout.
• • Aranca’s PPA Benchmarking Tool has an easy-to-use and interactive user interface. Allowing you to access relevant insights on your fingertips.

You can search either using the defined industry taxonomy in the drop-down on the left-hand side or using the keyword-based search on the right-hand side. In an industry search, you can filter to sub-industry levels; in the case of Information Technology, you can further dive down into new-age verticals such as SaaS, Ed Tech etc. For more information on filtering via Industries and sub-industries, you can refer to the questions below.

You can search either using the defined industry taxonomy in the drop-down on the left-hand side or using the keyword-based search on the right-hand side. In an industry search, you can filter to sub-industry levels; in the case of Information Technology, you can further dive down into new-age verticals such as SaaS, Ed Tech etc. For more information on filtering via Industries and sub-industries, you can refer to the questions below.

Aranca’s PPA Benchmarking Tool covers a wide range of industries, including the following:

• • Communication Services
• • Consumer Discretionary
• • Consumer Staples
• • Energy
• • Financials
• • Health Care
• • Industrials
• • Information Technology
• • Materials
• • Real Estate
• • Utilities

Users can filter by industry to find relevant acquisition data for their specific sector.

Yes, Aranca’s PPA Benchmarking Tools allows users to filter the insights based on sub-industries within each industry. This feature enables users to refine their search criteria and obtain specific transaction data relevant to their needs.

Whether you are interested in exploring niche markets or analyzing specific segments within an industry, the tool offers flexibility to cater to your requirements. For example, following are the sub-industries Aranca’s PPA Benchmarking Tool covers within Health Care are:

• • Health Care Distributors & Suppliers
• • Health Care Equipment
• • HealthCare Facilities
• • HealthCare Technology
• • Healthcare Devices and Supplies
• • Life Sciences Tools and Services
• • Pharmaceuticals and Biotechnology
• • Others

When a specific industry is chosen, the tool provides a breakdown of the PC into tangible assets, intangible assets, and goodwill for each of its sub-industry categories.

Aranca’s PPA Benchmarking Tool includes historical transaction data from 2017 to 2022, allowing users to analyze acquisition trends over time. To narrow down their search results, users can specify the desired timeframe or select from predefined options.

Yes, Aranca’s PPA Benchmarking Tool offers the ability to filter transactions by size, such as deal value. Users can select from predefined size categories to refine their search. The size categories are as follows:

• • $0–50 million
• • $50–100 million
• • $100–500 million
• • >$500 million

The Aranca’s PPA Benchmarking Tool offers users a comprehensive breakdown of the total purchase consideration. Initially, it presents the allocation into three main categories: intangibles percentage, tangibles percentage, and goodwill. This breakdown provides an overview of how the purchase price is distributed across different asset types.

Furthermore, users can delve deep into the allocation of intangible assets. The tool provides a detailed breakdown of various intangible asset categories, including customer-related, marketing-related, technology-related, and other. This granular breakdown enables users to understand the composition of intangible assets within the total PC, facilitating thorough analysis and decision-making.

Yes, Aranca’s PPA Benchmarking Tool offers a comprehensive breakdown of the allocation percentage within each category of intangible assets.

For customer-related intangibles, the allocation is divided into customer relationships, customer lists, and customer contracts/backlogs.

Marketing-related intangibles are further categorized into trademarks and domain names.

Within technology-related intangibles, the allocation includes technology, IP R&D, software, and patents.

Lastly, other intangibles encompass license agreements, operating rights, and miscellaneous intangibles.

Yes, Aranca’s PPA Benchmarking Tool offers a feature to view allocation specific to a particular asset under specific conditions. Adjacent to each asset on the display page of Aranca’s PPA Benchmarking Tool, there is a tick box. By checking this tick box, you can filter transactions to include only those with value allocated to that specific asset.

The tool also includes details on discount rates and the useful life for key intangible assets used in the source PPAs. Each of these average measures is accompanied by information on the number of transactions used to calculate them.

Aranca’s PPA Benchmarking Tool provides a detailed breakdown of how the purchase consideration (PC) was discharged, such as cash, stock, contingent consideration, and other forms of consideration. Users can choose to see the breakdown of PC for different subsets, defined based on the inclusion of specific PC components.

Check the boxes next to specific PC components to see a breakdown of PC for the transactions that included those selected components. For example, if the cash checkbox is selected, the results will show only transactions where the PC included a cash component.

Yes, we offer demo and support resources to help users effectively utilize Aranca’s PPA Benchmarking Tool. Our team is available to assist, answer questions, and address any concerns related to the tool's functionality and features. For demo inquiries and support assistance, please contact us at ppa.valuation@aranca.com .

The tool currently covers data related to all publicly available transactions in the US from 2017 to 2022. We are currently working on adding data related to 2023 transactions to the tool as well.

We observed significant variations in how companies (acquirers) reported PPA data in their financial statements:

• • Some provided a detailed breakdown of the purchase consideration (PC) in the “Business Combination” note.
• • Others only mentioned key intangible assets (e.g., only the value of customer relationships).
• • Some reported just one or two classes of assets, such as tangible, intangible, or goodwill.

Methodology Used:

The tool presents an analysis based on only reported data. We have not tagged the unclassified part of the purchase consideration. The concluded proportions are the mean values of the reported proportions, rebased to 100%. Furthermore, we considered transactions with allocated value to at least two asset classes, namely tangible assets, intangible assets, or goodwill.