To address the second part first, the accounting for the acquisition is dramatically different, depending on whether assets or a “business” is acquired. The following table summarizes some key differences. (more…)
3 Intangible Assets You Might Overlook During a Merger or Acquisition
I recently received a phone call from a CFO asking for a crash course in accounting for business combinations. Merger and acquisition activity is increasing as corporations look to grow, so the need for info on business combinations is great. In fact, a couple of my more successful clients underwent acquisitions in 2011 to larger corporations. In addition, clients are also interested in acquiring companies that will strategically benefit their growth. As I was putting materials together for this CFO, a couple things jumped out at me regarding intangible assets that I feel are not often thought about during the merger and acquisition process…