Optimising transaction outcomes by addressing key accounting challenges
In addition to more challenging accounting standards, businesses are also evolving to accommodate complex business structure and transaction changes. Changes stemming from market events, such as mergers, acquisitions, consolidation, restatements, debt/equity offerings, debt-equity conversions, divestitures, securisations, stock compensation, etc., can heighten reporting challenges for organisations.
These challenges may be daunting and in any one of these circumstances many events may unfold at once leading to disruption of your day-to-day operations.
What challenges will you face?
When coming up with business deals, you often find uncertainties which must be dealt with. Questions like the ones below will arise:
- What are the accounting and financial reporting implications of the structured deal or business transaction?
- Is the deal structured in the most effective manner?
- Are there other accounting alternatives that may reduce profit or loss volatility?
- What is “mark-to-market” accounting? Would this result in an unforeseen dilution of earnings?
- How should a retained stake in a business being sold be accounted for? Is the business to be disposed qualified as discontinued operation before the sale?
- Must complex capital structures be classified outside equity?
- Can the robust purchase accounting be carried out and can it stand up to audit scrutiny?
- What is the impact on post-acquisition earnings of the unwinding of fair value adjustments?
How can we help?
Our key strength is the wealth of experience we have in helping our clients manage these complex events. As well as our wide breadth of experience, we also have industry-sector specialists with in-depth knowledge of your industry, who we will make sure are involved in advising your company on difficult areas.
Leveraged from our extensive professional and technical resources, we provide the following services:
- Accounting and financial reporting support in mergers/acquisitions (pre and post deal) and IPOs
- Special-purpose financial statements (for IPOs, listings, capital raising and carve-outs)
- Purchase price allocation/post-merger integration
- Accounting advice for structured and complex transactions
- Restatements
- Comments on accounting applied in financial models, forecasts and budgets
- Target accounting policy review
