Apples and Oranges: Financial Reporting for a Sale or Merger

摘要

In the world of mergers and acquisitions, U.S. Generally Accepted Accounting Principles (GAAP) in a sale or merger situation can mean something entirely different than GAAP for reporting and compliance purposes. The realm of investment bankers and transaction lawyers and its dizzying pace can confuse even an astute business owner with terms and phrases like "adjusted EBITDA," "transaction multiple," and "working capital peg." This column highlights some of the key differences in accounting methodology often found in the transaction environment and identifies issues to consider as you prepare your small business's financial reporting for a potential sale or merger.