Business assets are generally reported at the lower of cost or market value. Under this accounting principle, certain assets are reported at fair value, such as asset retirement obligations and derivatives. Fair value also comes into play in M&A transactions. That is, if one company acquires another, the buyer must allocate the purchase price of […]
Tad Render and Domenic Rinaldi The sale of your business is often a significant life event. The tips below will help you through the process and maximize the value of your business. 1. Thou Shall Understand Goals and Objectives Ask yourself what you are trying to achieve by selling your business. Is it financial security? […]
Miller Cooper Principal and Director of M&A Services, Tad Render participated in the ongoing M&A Unplugged Services. He spoke on The Power of Preparation.
An independent quality of earnings (QOE) report can be a valuable tool in mergers and acquisitions. It’s important for both buyers and sellers to look beyond the quantitative information provided by the selling company’s financial statements. Quality Matters There’s a lack of guidance from the American Institute of Certified Public Accountants (AICPA) regarding scope and […]
The M&A market was hot last year, and that momentum is expected to continue in 2019. Before acquiring another business, however, it’s important to do your homework. Conducting comprehensive due diligence can be a daunting task, especially if you’ve never negotiated a deal before. So, consider seeking input from an experienced accounting professional. Reviewing historical […]
Two often overlooked aspects of asset acquisitions relates to sales tax due on any of the specific assets acquired and successor liability of seller’s unpaid sales tax obligations. Bulk Sale Exemptions When a transaction is structured as the acquisition of net assets certain assets transferred to the buyer may be subject to sales tax. In […]
One common challenge in accounting for a merger or acquisition is how to record the transaction on the buyer’s financial statements. The first step is to determine whether the buyer has acquired a business or simply purchased a group of assets. The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2017-01, Business […]