What are you going to do with the individuals and assets after you purchase them? Hopefully, you have planned this out well before the purchase.
It is essential to have both a process and structure in place for your leadership to provide full postmerger integration support. You’ll need to identify who the leaders will be for your integration plan as you design the organization and operation structure moving forward. This will include details such as compensation structuring, an audit of your benefit plans as well as technology integration.
Integration ranges from folding all aspects of one organization into another – think HR, accounting, marketing and operations, to leaving the company intact because of geography or the addition of a new industry or sector. Keep in mind that the smaller company may be the one that is more technologically advanced.
During the post-acquisition process, you will conduct the final purchase price review. When making an allocation, consider the post-acquisition purchase price allocation, in which the purchase price is allocated to the various assets acquired. In many cases, the purchase price exceeds the value of the tangible assets acquired. Accounting rules govern when the excess must be allocated to intangible assets such as trademarks and technology. Determining the fair value of intangibles requires a valuation expert.
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