Fair value guidelines require the allocation of purchase consideration to various assets and liabilities acquired. A transaction can be structured as an asset purchase or a stock purchase. For purposes of fair valuation, we will apply the most appropriate method of value. The scope of an engagement typically includes valuation of identifiable intangible assets and contingent liabilities (“earn-outs”) if any. Depending on the industry which the acquired company operates in, the list of the intangible assets may include: Customer Relationships, Tradename/Trademarks, Intellectual Property (IP), Non-Competition Agreement, Technology (patented or unpatented), Know-How, In-Process Research and Development, Backlog, and Deferred Revenue. Contingent considerations are typically valued using a probability based method which includes probability weighted discounted cash flow, a plain vanilla option pricing method, or in complex cases, the use of a Monte Carlo simulation.