The economy remains in a state of uncertainty which means many companies are looking for ways to increase their performance and revenue beyond traditional internal growth methods. During times of economic distress, studies have shown that many companies have turned to merger and acquisition strategies as they provide high, long-term shareholder returns. A market of low prices can create an attractive arena for companies with steady financial positions.
Acquisitions can provide a venue for external growth but consulting with your accounting professional is vitally important to ensure financial and tax compliance throughout the process. Many responsibilities can arise during an acquisition such as tax liability analysis, debate of asset or stock purchase, and post-acquisition compliance duties.
Nicole Hale is the Marketing Coordinator for Gray, Gray & Gray, LLP