Supreme Acquired Typhoo Tea: Purchase Price Allocation Case Study

Brief

Supreme acquired Typhoo Tea, a historic 120-year-old tea manufacturer, and required a valuation for purchase price allocation (PPA) purposes. Typhoo Tea had entered administration following declining sales, widening losses, and rising debts, and Supreme Plc needed a clear and defensible assessment of the company’s tangible assets to support financial reporting and transaction accounting.

Work

The Hickman Shearer team conducted a site visit to inspect the company’s tea bagging machinery and associated equipment. During the visit, a comprehensive inventory of assets was compiled, allowing reconciliation against the Fixed Asset Register (FAR) provided by the client. This thorough approach ensured that all operational equipment was accounted for and accurately valued.

Outcome

A detailed valuation report was delivered, accompanied by a comprehensive breakdown of the assets, providing Supreme Plc with clear, defensible values for purchase price allocation. The assessment gave the client confidence in the accuracy and completeness of the asset values while supporting compliance with relevant accounting standards.

At Hickman Shearer, we help you navigate financial reporting requirements and purchase price allocation with confidence and precision. Find out how we can do the same for you >> FINANCIAL REPORTING AND PURCHASE PRICE ALLOCATION