In a business combination achieved in stages, the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree
Contingent consideration usually is an obligation of the acquirer to transfer additional assets or equity interests to the former owners or members of an acquiree
as part of the exchange for control of the acquiree
if specified future events occur or conditions are met.
Other Utah acquirees
describe important aspects of the phases, including completing a thorough, reality-based prehoneymoon due diligence and business plan.
The value of the business acquired under the new standard will usually be measured as the sum of the acquisition-date fair values of the following three items: Consideration transferred for the acquiree
; for step acquisitions (those achieved in stages), equity interests in the acquiree
held by the acquirer immediately before the acquisition date; and for a partially owned subsidiary, noncontrolling interests in the acquiree
held by third parties.
In the absence of evidence to the contrary, consideration transferred by the acquirer at the acquisition date is presumed to be the best evidence of the fair value of the acquirer's interest in the acquiree
Krishnan, Miller, and Judge (1997) found that when acquirer and acquiree
managers had complementary backgrounds, the top management turnover in the acquired firm was lower.
The purchase method only allows the income of the acquiree
to be combined with the income of the acquirer from date of acquisition forward.
The forecast would include estimating the fair value of consideration, including contingent consideration; developing a forecasted historical cost balance sheet of the acquiree
and adjusting the balance sheet to fair values; estimating the time periods over which the fair value adjustments will be included in post-combination earnings; and estimating acquisition expenses and other incremental effects of the acquisition.
According to the EDs, goodwill is still an unidentifiable residual value and is computed as the difference between the fair value of the acquiree
as a whole and the fair value of the net assets acquired.
It was GM's great fortune that EDS refused to let GM do to it what almost every acquirer has done to every acquiree
You might find that bank merger activity is not merely something you read about in the newspaper: your bank may be a player, either as an acquirer or an acquiree
It's a good idea to check with the Public Relations Department to be sure that what you're saying will complement the public stance of both the acquirer and acquiree