We helped Synectics Solutions navigate their reporting requirements, including purchase price allocation, identifying intangible assets under FRS 102, and sweet equity valuation, after receiving private equity investment.

Snapshot

• Client: Synectics Solutions

• Industry: Software and data solutions in the Financial Services industry

• Service provided: Purchase price allocation and sweet equity valuation following private equity acquisition

Results

• Identified and valued key intangible assets under FRS 102

• Delivered full valuation of management’s sweet equity shares

• Produced audit-ready reports under tight timelines

• Streamlined audit process through early collaboration with auditors

Client introduction

Founded in 1992, Synectics Solutions is a leading provider of software and data services that help organisations combat fraud, financial crime, and money laundering. The company supports over 170 clients across both public and private sectors globally and Synectics is recognised for its role in advancing customer identification and financial inclusion.

In 2024, Synectics entered a new growth chapter following a significant investment from Synova, a private equity firm specialising in high-growth technology businesses. Synova partnered with Synectics' leadership team to support continued innovation and expansion.

The challenge

As part of its year-end financial reporting after the Synova investment, Synectics needed to complete two key fair value tasks:

1. Valuation of intangible assets (such as software and brand) under FRS 102

2. Valuation of ‘sweet equity’ shares awarded to senior management

The intangible assets clearly needed valuing - but it was initially unclear whether the sweet equity shares would be material enough to require full reporting. As such we flexed our approach so that, initially, we could assess whether the charge would potentially be material (and accordingly minimise cost if it was found that it wasn’t).

The solution

Referred by their audit team (a top 10 audit firm), Synectics approached us to carry out both valuation workstreams. We proposed a clear, phased approach:

• Purchase Price Allocation (PPA): We worked with Synectics to identify and value intangible assets that met the definition of ‘identifiable’ under FRS 102, including their software and brand name.

• Sweet Equity Valuation: We began with a high-level materiality assessment. Once confirmed as material, we completed a full valuation of the shares in line with audit expectations.

Throughout the project, we remained in close contact with both the Synectics finance team and their auditors to ensure transparency, shared understanding, and audit alignment.

The results

With our help, Synectics met its fair value obligations confidently and on time - allowing Synectics’ management to confidently move on to other projects.

Due to the proactive, collaborative approach, Synectics achieved:

• Audit-ready reports delivered on time and aligned with reporting requirements

• A smooth audit process, with key assumptions agreed in advance to minimise review queries

• Stronger internal understanding, as the finance team remained informed and involved throughout

• Greater confidence post-deal, with valuation outputs supporting both compliance and investor expectations

“It was a pleasure working with David on our valuation. He was able to both explain complex concepts in a way that was understandable and to work with our time scales to ensure we were able to hit our tight deadlines.”

Matt Hall, Chief Financial Officer

Looking for support post-investment? 

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