Acquisition of a new business, or selling/spinning off a subsidiary or a division, may pose accounting and reporting challenges, such as:
Determining whether the new business should be a subsidiary or joint arrangement
Deciding if the consideration paid be classified as debt or equity
Defining how the target’s P&L and balance sheet would look after applying your accounting policies
Going public, or listing your entity, also requires compliance with certain accounting and reporting requirements.
How KPMG can assist your organization
We help organizations plan and execute transactions, remaining involved throughout the life cycle of the transaction. Our team assists in developing appropriate accounting and finance structures, as well as advising on post-deal and integration strategies. Our approach, tools and accelerators are designed to support you in identifying and enhancing value throughout the deal cycle.
We offer services on the buy-side and sell-side, as well as for IPO and Capital Market Advisory, to provide end-to-end transaction support.
IPO and Capital Market Advisory
We can support across multiple areas, including:
- Assessing the finance function’s readiness
- Advising on transaction structures
- Performing reviews to pinpoint deviations critical to the objective of the transaction
- Assisting in preparing financial statements to support the execution of the transaction
We assist with:
- Advising on purchase accounting issues
- Preparing purchase price allocation entries and ensuring the PPA is reflected in the underlying systems and records
- Assessing the preliminary impact of key elements, including their affect on the purchase price for accounting purposes
We provide support related to:
- Separating the finance function of the business sold (or disposed) from the existing finance function
- Preparation of a financial separation road map
- Understanding the accounting and financial reporting implications of the transaction, based on the terms included in the sale agreement