* Part of the fair value of the acquiree is attributable to in-process research and development cost (IPR&D).
* The fair value of the acquiree as a whole is less than the fair value of its identifiable net assets; that is, there is a bargain purchase gain (or so-called negative goodwill; see APB Opinion 16, SFAS 141 and SFAS 141[R]).
In its separate financial statements under pushdown accounting, how should an acquiree with a less-than-100% change in ownership measure its net assets--at fair value, or partly at fair value and partly at book value?
The acquisition date is the date on which the acquirer obtains control of the acquiree (paragraph 3(c) of FASB Statement No.
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.
Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree
"The acquirer says, 'This is what we bought, right?' and the acquiree
says, 'This is who bought us, right?' There is always disappointment on some side, and with a successful acquisition, a lot of learning has to take place.
This higher rate could be because of either acquirers letting go of acquirees' top management or these managers voluntarily quitting.
If acquirees' TMT is a source of valuable country-specific expertise then:
If acquirees' TMT is a source of cultural conflict that can undermine foreign investors' establishment of control then:
In many cases the acquired equity stake is a majority stake or, in a number of cases, a 100 percent share of the acquiree. However, even with an equity participation of (slightly) less than 50 percent, the western acquirer - representing a relative wealth of managerial, technological, and financial capabilities and resources - is generally expected to lead the process of adjusting and restructuring the east European business to meet the requirements of market-based competition.
Managing such a challenging 'turn-around' situation requires substantial learning on both sides, the western acquirer and the central east European acquiree. While the research work underlying this paper deals with a variety of issues concerning post-acquisition management and learning in central east European organizations, the present paper focuses on aspects of individual, managerial learning following acquisitions in Hungary, the Czech Republic, Slovakia and Poland.