Supreme Plc Acquires Clearly Drinks: Purchase Price Allocation Case Study

Brief

Supreme Plc acquired Clearly Drinks, a flavoured water manufacturer, and required a valuation for purchase price allocation (PPA) purposes. The company’s asset base included a diverse range of bottling and packaging equipment, varying in age, type, and specification. The objective was to produce a defensible valuation that would stand up to audit scrutiny and support accurate financial reporting.

Work

We conducted a site visit to gain detailed insights into each bottling line in operation, assessing differences in technology, condition, and age. Recognising the complexity of the asset base, the team carried out targeted market research, consulting multiple industry dealers to obtain benchmark pricing for comparable new and used machinery. This approach ensured realistic and evidence-based asset valuations.

Outcome

A comprehensive valuation report was delivered alongside a detailed asset schedule, providing Supreme Plc with clear, defensible asset values for Purchase Price Allocation. The team proactively engaged with the client’s auditors, offering explanations and supporting data to facilitate the review process, ensuring a transparent and efficient audit. The outcome reflected the true operational and market value of Clearly Drinks’ assets while fully complying with financial reporting 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 >>