Prepare carve-out financial statements

Preparing a business for a carve-out, spin-off and/or sale is a complex exercise that requires effective planning and strong execution. Typically, carve-out financial statements are the foundation from which all other deal related financial information is either derived from or reconciled to, thereby supporting various financial information needs of multiple transaction participants. Time and time again we hear that preparing financial information for the business to be divested is one of the key and most complex issues they face in executing a sale or spin-off of a business.

 
PwC US Capital Market Leader Neil Dhar discusses what type of advice companies are looking for and PwC's insights.

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94% of respondents said they expect to see similar or increased levels in divestiture activity in 2013, compared to 2012

Source: PwC webcast poll

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Companies proactively assess their portfolios to identify potential divestiture or spin-off opportunities. Learn why choosing the proper strategy is important to your business success. Watch our webcast.

 
Divestitures activity as a percentage of total M&A activity has increased

Source: PwC webcast poll

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Critical to any carve-out process, including the spin-off of a subsidiary, are deep technical knowledge and analytical skills around not just the tactical extraction and separation process, but also the various regulatory and accounting requirements to be addressed in executing the transaction. Having a robust carve-out process that is manageable, flexible, scalable and addresses the multiple forms a divestiture can take, enables organizations to drive quality, efficiency and value into the deal process.

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Click here to learn How one company successfully divested several non-core operations to meet demands.

 

ASC740

First and foremost, preparers of carve-out financial statements for taxable entities must comply with the Income Tax Code.

How do you bridge the differences between GAAP and deal basis financial statements with your carve-out?

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