In the fast-paced world of mergers and acquisitions (“M&A”), financial transparency and compliance are non-negotiable. Among the many complexities involved in an acquisition, Purchase Price Allocation (“PPA”) is a vital component that both companies and stakeholders must understand. In this article, we explore the intricacies of PPAs in South Africa, their regulatory framework, and why businesses particularly those listed on the Johannesburg Stock Exchange (“JSE”) — need to ensure they get this right.

South Africa has been teetering on the edge of a recession, narrowly avoiding a technical one with a GDP growth of 0.1% in the final quarter of 2023.
 
Despite this, the nation remains in what economists call a "per capita recession." This unique economic phase reflects the fact that while the population is growing at around 1.5% to 1.6% per year, the GDP growth lags, indicating a stagnating economy where individual wealth is shrinking. For business owners and investors alike, the outlook for business valuations in such an environment is critical to understand, particularly as a full-blown recession looms on the horizon.

World Environment Day, celebrated annually on June 5, encourages awareness and action for the protection of our planet. This day serves as a reminder of the urgent need to address environmental challenges and promote sustainable practices. For Moore, which specialises in corporate valuations, it is essential to understand the role that valuations can play in promoting sustainability.