Many companies worldwide invest in M&A transactions. The aim of professional M&A accounting should be to meet the complex challenges of M&A transactions and to efficiently tap growth potential.
Challenges in M&A Accounting
Diverse and complex requirements may result from company acquisitions and company sales. It is necessary to prepare the accounting for a forthcoming sale or corporate action in order to be able to supply the required data and analyses in correct form and at short notice.
In the case of a company acquisition, it is advisable to use a finance assessment that analyzes the accounting system, the IT environment and the existing processes in order to uncover potential for optimization and to identify the need for action in connection with the integration of the company. The post-merger integration of the acquired company may give rise to additional extensive challenges, such as the standardization of the charts of accounts and the consolidation of the accounting methods applied. Another necessary integration measure may be the integration of the acquired company into an existing accounting or consolidation system or the extensive roll-out of a new system.
Furthermore, the preparation of an opening balance sheet is necessary for the execution of a purchase price allocation. In connection with this, it may be necessary to convert the accounting to the corresponding accounting standard of the buyer (e.g. IFRS, US-GAAP, German Commercial Code (HGB)). Another challenge posed by a company acquisition is the initial consolidation of the acquired company, including the mapping and continuation of the purchase price allocation carried out. Depending on the respective acquisition structure, this can result in very complex tasks for the Group accounting.
A change in the ownership structure and the associated changes in financing may also result in additional new tasks, such as extensive reporting requirements for the owners or banks.
M&A Accounting – FAS AG Services
You will receive a systematic, structured and sustainable handling of a transaction with sufficient availability of capacities. These conditions are guaranteed by FAS AG, as our experienced consultants have the necessary holistic expertise. This concerns the core tasks of the process as well as the M&A project management and extends from the first consultation when an indicative offer is submitted, through all phases of the M&A process, up to the final post-merger integration.
Sale of Company Shares
- Support in the context of an IFRS conversion or IFRS financials in preparation for a sale or a corporate action
- Preparation of accounting for a forthcoming sale or corporate action
Acquisition of Company Shares
- Analysis and documentation of existing processes, IT structures and accounting within the scope of a finance assessment
- Preparation of an IFRS opening balance sheet as the basis for purchase price allocations including subsequent presentation and continuation on the balance sheet
- Support in the standardization of charts of accounts, standardization of accounting methods, fulfillment of reporting obligations, setup of IT systems, integration into or roll-out of a new accounting and consolidation system in the course of post-merger integration.
- Support in setting up new reports, such as bank reports or covenant controlling reports
- Support in communication between new owners and acquired companies as well as auditors
- Support in setting up reporting to new owners (for example, in setting up monthly reporting and quarterly reporting in accordance with IFRS)
We support you with our know-how and experience in setting up the necessary processes, and provide you with operational support during peak periods or in the assumption of entire topic blocks, such as IFRS quarterly financial statements and IFRS consolidated financial statements.
Our range of services extends from the complete assumption of a project with project management to support with complete task blocks or also selective activities. We can adapt our consulting approach so that your employees are integrated in the best possible way with the deployment desired and possible.
We place particular emphasis on ensuring that your employees have the necessary knowledge after project completion to be able to carry out the controlling process prospectively and independently, if desired.
If you are interested or have any questions, please contact us.