This
acquired company will remain a separate organisation and offer its own parts and services under its own brand name, Alfa Laval added.
Therefore, in a merger, the acquiring company and the
acquired company are the same taxpayer for purposes of Sec.
The departure of owners and top executives of an
acquired company may be particularly relevant in cases in which the knowledge contained within the
acquired company is a key asset.
It is important that we develop a realistic business plan to use the
acquired company to grow earnings and make the investment accretive to shareholders.
After Henkel purchased the assets and liabilities of metalworking chemicals maker Amchem, it was sued for damages resulting from pre-sale exposure to metallic chemicals manufactured by the
acquired company.
Immediately identify treasury liaison contact in
acquired company treasury.
However, it is difficult to retain all
acquired company top executives, as most are lost within a few years of the acquisition (Krug & Hegarty, 1997; Walsh, 1988, 1989; Walsh & Ellwood, 1991).
That is, it is the difference between the fair value of the
acquired company (the amount paid for the company) and the amounts assigned to the
acquired company's assets and liabilities during the purchase price allocation process.
At Saint-Gobain, "success" means we achieve synergy, and therefore get the financial results we expect from the acquisition; and the best people in the
acquired company decide to stay.
Other rules apply when the loss relates to a lower-tier subsidiary of the
acquired company.
Help reduce any "culture shock" by identifying key company or country cultural characteristics of the
acquired company and the acquiring company to assist in communications.
A study conducted by Mercer Consulting Group, indicated that the problem with recent acquisitions seems to have much less to do with faulty selection -- or with paying too much for an
acquired company -- than with what went on after the deal was sealed.
