A purchase price allocation (PPA) is the first post-close workstream that directly affects reported EBITDA, lender covenant calculations, and eventual exit valuation for PE-backed acquirers. Under ASC 805, every acquisition requires the buyer to allocate the total purchase price to identifiable assets and liabilities at fair value — including intangibles that never appeared on the target’s balance sheet. For middle-market deals, identified intangibles commonly represent 30–60% of total consideration, and each carries its own valuation methodology, useful life assumption, and amortization consequence. The McLean Group’s Valuation Advisory team breaks down what every CFO, controller, and deal team needs to know about getting the allocation right the first time. […]

Normalized EBITDA shows clean profitability, but it doesn’t tell you whether that profitability is built to last. For PE sponsors, the difference between a well-priced deal and a costly mistake often comes down to whether your Quality of Earnings provider goes beyond standard adjustments and into the operational KPIs that reveal true margin durability. The McLean Group’s Transaction Advisory team explores how the right diligence partner layers in gross margin by service type, resource utilization rates, and backlog conversion patterns to give buyers a sharper view of risk, a stronger basis for negotiation, and a head start on post-close execution. […]