Postdeal M&A issues: Ensuring a smooth transition

Description

Abstract: Mergers and acquisitions take months (or even years) of work to conduct due diligence, negotiate the terms and obtain financing. But the hardest work comes after closing, when management is tasked with integrating two corporate cultures. This article explains how lenders can do more than watch from the sidelines: They can review interim performance, encourage swift and decisive change, and ask a lot of questions. A sidebar highlights simplified accounting alternatives that private companies may now elect after combining with another entity to minimize postdeal accounting costs.