In cross-border deals, buyers shouldn't underestimate aspects of a transaction that require attention post-acquisition.
Months of hard work have paid off and the deal is closed. The buyer has performed its due diligence, navigated the SEC reporting requirements, and assessed the potential tax effects of the transaction. The rest should be easy, right? Not so fast! Generally, buyers underestimate the other aspects of a transaction that require attention post-acquisition and the amount of effort needed to navigate the accounting and financial reporting considerations.
This edition of Mergers & acquisitions — a snapshot is the fourth and final edition in our series focused on navigating the waters of a cross-border acquisition. The first three editions have looked at various aspects along the deal continuum prior to closing as well as potential tax considerations. This edition focuses on some of the other post-acquisition accounting and reporting issues that need to be considered in relation to cross-border deals, including US and international reporting requirements, foreign currency matters, and impairment testing.