Closing and post-closing issues
Most share purchase agreements will contain assumptions and warranties about the condition of the business at closing. The reality must be tested against these assumptions at or shortly after closing.
Any investor preparing group financial statements in accordance with IFRS will need to assess the fair value of all assets and liabilities acquired, in order to create the opening balance sheet of the acquired entity in the consolidated accounts (the “purchase price allocation”). The most difficult issues are the valuation of intangibles such as brand names, customer base, contractual rights and technonolgical know-how.
More importantly, you need to make a success of the acquired business. You may have a whole range of planning and integration issues, as well as short term problems such as bookkeeping needs.
How we can help you
Our management consultants and the IT specialists in our ERS function have strong experience of addressing the challenges of planning a successful integration. They would be pleased to offer a realistic and no-obligation assessment of what can be done.
Our accounting services division can assist with short term bookkeeping.
We can also provide closing due diligence procedures and purchase price allocation services.
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