Insight

Avoiding pitfalls in business combinations

Exploring challenges arising in acquisition accounting

James Weaver

James Weaver

Principal, Valuation & Business Modeling Services, KPMG US

+1 678-654-2655

Frederik Bort

Frederik Bort

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-2980

Given the prevalence of acquisitions in most industries, we are creating a thought leadership series called Avoiding Pitfalls in Business Combinations to address many of the common issues that arise when accounting for a business combination.

Avoiding Pitfalls in Business Combinations: Determining if a Not-For-Profit Combination Qualifies for Merger Accounting
This document provides a brief overview of the factors to consider when determining if a combination should be accounted for as a merger or as an acquisition.
Avoiding Pitfalls in Business Combinations: Common Valuation Issues with Fresh Start Accounting
From a valuation perspective, it would appear that there is little difference between fresh start accounting and a traditional business combination. However, in reality, the process can be very different. This document provides a brief overview of factors to consider when performing a valuation for fresh start accounting purposes.
Avoiding Pitfalls in Business Combinations: Finding from PCAOB Inspections
Over the past decade, audit quality issues have been identified by Public Company Accounting Oversight Board (PCAOB) inspections. In this document, we summarize common areas of deficiency identified in PCAOB Part I comments pertaining to fair value measurements for business combinations.
Avoiding Pitfalls in Business Combinations: Five Common Challenges
With the increasing volume of merger and acquisitions in recent months, it’s important to be reminded of common issues that can arise when accounting for business combinations. Included in this report are five common pitfalls to avoid when performing a purchase price allocation under ASC 805.