The Weighted Average Return on Assets (WARA) is the blended return rate across all identified assets in a Purchase Price Allocation (PPA), used as an internal consistency test. The WARA must equal the acquired entity's WACC for the PPA to be economically coherent — if it differs materially, the return rates attributed to individual assets must be recalibrated. Each asset's return rate reflects its risk profile: tangible assets at low rates (near cost of debt), intangibles at intermediate rates, and goodwill at the full cost of equity (highest risk residual).

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Example: in a CHF 25.0 million PPA, Hectelion identifies: goodwill (CHF 14.4M at 10.5%), technology (CHF 4.5M at 14.0%), customer relationships (CHF 3.2M at 12.5%), tangible assets (CHF 2.1M at 5.5%), working capital (CHF 0.8M at 3.5%). WARA = (14.4×10.5 + 4.5×14.0 + 3.2×12.5 + 2.1×5.5 + 0.8×3.5) / 25.0 = 10.4% — consistent with the 10.5% WACC, validating the PPA's internal economic coherence.

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Hectelion calculates and validates the WARA in every PPA mandate to confirm the economic coherence of asset-level return assignments across all identified asset classes.