The Role Of Financial Management In Successful Business Acquisitions Essay

The Role Of Financial Management In Successful Business Acquisitions - Essay Example Therefore in the light of all these considerations in order to ensure that my presentation is a success my aim will be to educate the audience into becoming more informed users of financial statements pertaining to mergers and acquisitions.I will emphasize upon the intricacies of financial accounting in this regard particularly with regard to goodwill, acquisition provisions and tax. Another consideration will be the use of acquisitions concluded by contract, rather than by exchange of equity interests. This is will also involve an explanation of how the GAAP (Generally Accepted Accounting Principles) have coped with the variances in different systems in order achieve successful financial reporting objectives.The presentation will highlight the fact that corporate financial statements serve as information givers about the portfolio of the firm pertaining to its performance and prospects.My presentation will demonstrate the link between the economic atmosphere and how its reflects ont o a financial statement.Also included in the presentation will be how the organizational manager of a firm can communicate to the financial users the views of the financial issues thus taking on the role of a financial intermediary. Of prime importance will be an understanding and communication of financial statements and what should or should not be disclosed in line with the regulation and strategy.  This would help the acquirer recognize many intangible assets  separately from goodwill.... ng to its performance and prospects.My presentation will demonstrate the link between the economic atmosphere and how its reflects onto a financial statement.Also included in the presentation will be how the organisational manager of a firm can communicate to the financial users the views of the financial issuers thus taking on the role of a financial intermediary. Of prime importance will be an understanding and communication of financial statements and what should or should not disclosed in line with the regulation and strategy. The Balance Sheet The pith and substance of reviewing a financial statement prior to concluding a merger/acquisition contract pertains to the underlying economics of the economic events highlighted.The relevant information would include the figures which reflect the current value of the assets which are to be acquired and the liabilities assumed.This would allow a potential buyer to recognise the assets acquired and liabilities assumed at their acquisition date fair values and this should be reviewed regardless of the fact how these assets were acquired (that is by merger or contribution or even purchase).This would help the acquirer recognise many intangible assets separately from goodwill. The diagram above1 shows how the financial information and its disclosures will finally lead to the closing of a merger deal. Before concluding a merger or acquisition the experience accountant will scrutinise the pension and tax liabilities which will arise subsequently and how will they be computed post acquisition.Also relevant is the extent to which the buyer will be held responsible for the company's individual assets acquired and liabilities assumed . It has to observed from the balance sheet and agreed from the start how the liability for the