COMPANY MERGERS, ACQUITIONS AND
DIVERSTMENTS (M&A)
To acquire or divest a company are often major and important transactions. As each individual transaction is unique, and small details may lead to material, and sometimes unwanted, accounting effects, it is crucial to analyze the accounting effects thoroughly ahead of each transaction.
Under certain circumstances, companies are required to provide additional information to stakeholders in connection with acquisitions, for example through the preparation of pro forma accounts. We have extensive experience of analyzing the accounting effects of acquisitions and disposals, both from an IFRS and Swedish GAAP perspective, and we can, therefore, help you identify and evaluate the critical accounting issues. If you are required to prepare pro forma accounts, we may prepare the accounts for you, or in collaboration with you.
The work and challenges for the finance department continues post the completion of the transaction. As an example, it is often required to adapt the acquired company’s accounting policies to the acquirer’s accounting policies. Further, the acquirer is required to provide disclosures of the acquisition’s effects in the consolidated financial statements. We will support you in onboarding new companies into the Group and evaluate their effects on the financial statements.
Examples of situations where Fenix Advisory have supported companies:
Company acquired by a larger group, where we supported in discussions on the application of existing accounting policies.
Acquisition of a company to a real estate group. Support in accounting effects as a result of the SPA.
Supported the buyer with analysis and understanding of accounting differences in the target between IFRS and Local GAAP.
Supported the buyer with accounting effects, analysis and calculations as a result of how the purchase price mechanism was structured.
Presentation in financial reports of the effects of divestment of a major sub-group. Support in calculating the effects of the divestment.