Acquired assets not intended to be used: You may need to record them, even if you don't use them! (M&A snapshot)

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In many M&A transactions, a buyer may acquire assets it does not intend to use. Prior to the M&A Standards, buyers generally would assign little or no value to assets that are not intended to be used when accounting for an M&A transaction. Now, such assets are required to be recognized at fair value from a market participant perspective, even if that perspective differs from that of the actual buyer.

One common type of asset that a buyer does not intend to actively use that is receiving considerable attention is called a "defensive asset." This volume of Mergers & Acquisitions - A snapshot, focuses on some of the issues companies may face when initially recognizing, measuring and subsequently accounting for defensive assets. We encourage you to share this document with clients and prospective clients, and engage them in discussions about how they may be impacted.