The Pine Hill Group

Transaction Support Services

When mergers and acquisitions occur, complex accounting issues arise that can greatly impact the value of investments. We help clients to move forward with confidence, from beginning to end.

Merger & Acquisition Structuring

The Pine Hill Group is eminently qualified to guide businesses through the specialized accounting processes of merger and acquisition (M&A). The acquiring companies use various gauges to value their targets. Some of these methods are based on comparative ratios - such as the Price Earnings (P/E) and Price to Sales (P/S) ratios, replacement cost or discounted cash flow analysis.

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Purchase Price Allocation and Acquisition Accounting

Purchase price allocation is an application of “goodwill accounting” whereby the acquirer assigns new values to the target’s assets and liabilities, based upon the price paid. Up until last year, the purchase price allocation was performed in accordance with the Financial Accounting Standards Board’s Statement (SFAS) 141, “Business Combinations” and SFAS 142,“Goodwill and Other Intangible Assets”. Effective for transactions entered into for fiscal years beginning on or after December 15, 2008, FASB issued SFAS No. 141(R), Business Combinations (Revised) (“SFAS 141(R)”), to replace SFAS 141. The rules have significantly changes from SFAS 141. The Pine Hill Group has the expertise to lead you as the new guidance requires.

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Due Diligence

Our due diligence takes a comprehensive view of mergers, or de-mergers, spinoffs, carve-outs and any of the variations that can happen when one company buys or sells another. We analyze tax implications, compensation and benefits, supply chain and distribution channels, core operations, information technology, and back-office operations such as finance, accounting, and human resources. Critically, we assess quality of earnings and working capital requirements.

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Post-Acquisition Integration

Although it may be hard to believe, after the acquisition deal has gone through, the bulk of the work is just starting. The Pine Hill Group has developed a clear strategy and process for dealing with post-acquisition, evolved through many years of practical experience in M&A accounting. We offer strong leadership for a seamless integration process in a time that, for the vast majority of companies, is not business as usual.

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The Pine Hill Group