Mergers and Acquisitions Can Be Overwhelming
Every business purchase, be it sale or acquisition, offers opportunities and potential pitfalls — both of which can impact the companies involved for years to come. When the companies that consider mergers and acquisitions lack the internal resources to conduct an efficient and thorough analysis, they are forced to hire a cadre of costly outside accountants and lawyers. While these firms offer much-needed expertise, the efforts to contain costs often result in a mechanical approach and a rush to close the books. All the boxes are checked, but the final analysis can be a static, one-dimensional image of the company or assets.
Buyers and sellers are entitled to a multi-dimensional, forward-looking analysis so both sides can accurately assess current and future value. Our BlytheTeam® has a proven record of helping clients make investment decisions with confidence. Our customized solutions are affordable, offer specially developed tools and templates, and cover a broad range of needs.
Due diligence is critical in determining if a merger or acquisition’s underlying assumptions were correctly assessed. We help collect, scrutinize and verify all required information and documentation to identify problems, errors, inconsistencies, threats, opportunities, and more. We also review financial models for accuracy and viability.
Deal Structure Analysis
Putting together the definitive agreement involves intricate issues, such as working capital adjustments, capital reserves, earnouts, etc. Each of these has complex accounting implications. BGA helps structure a final agreement that identifies future accounting problems, risks and opportunities — and we propose proven solutions for each situation.
Integration Planning and Implementation
Taking advantage of synergies early can get a merger or acquisition off to a fast start. Whether you manage the integration process internally or outsource the work, BGA’s specialized templates help keep the deal on track and on time. We also evaluate the merger or acquisition’s implications on contracts already in place with customers, partners, vendors, etc., and develop solutions to safeguard those relationships.
Determining the appropriate accounting treatment for business combinations is complicated, and correcting errors is costly and time-consuming. BGA identifies current and future accounting implications and recommends ongoing accounting treatment. If we conclude a valuation expert is needed, we help identify the right firm, coordinate interactions among all parties, and review conclusions.