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The Role of Financial Management in Successful Business Acquisitions and Mergers - Essay Example

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The aim of the paper is to educate the audience into becoming more informed users of financial statements pertaining to mergers and acquisitions. The author emphasizes the intricacies of financial accounting in this regard particularly with regard to goodwill, acquisition provisions and tax …
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The Role of Financial Management in Successful Business Acquisitions and Mergers
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Download file to see previous pages Any merger or acquisition will require careful financial attention at all stages particularly because this is a financial consolidation of two corporate entities whereas the assets and liabilities will be shared. It is worth noting the difference between mergers and acquisitions as mergers are attributed to the consolidation of two corporations and acquisitions involve the purchase of one organization by another. This will be a decision based mainly on financial strategic management where the danger is that there will be a failure to meet the anticipated purpose in the end. 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. 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 to 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 it reflects onto 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 issuers.  ...Download file to see next pagesRead More
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