Merger and Acquisition Consultants
Mergers and acquisitions (M&A) is a common approach to optimizing the scope of a firm’s services, increasing market share, and recognizing synergies through increased scale. Integrating the operations of existing firms requires an analysis of multiple aspects of each company.
Our team recognizes the means of achieving greater financial strength for your firm and any other entity involved in M&A transactions, and our services offer your firm the opportunity for stimulating company growth.
The H4D Consulting team specializes in performing an assessment of existing controls, processes, and systems for M&A transactions and merging them into a single, unified process. We understand that post-merger integration can be a challenging process. Our team collaborates with the management team to identify pre-merger opportunities and implement recommended changes post-merger. The areas our team focus on are:
- System Assessment and Design
- Redesign of Processes and Workflow
- Documentation and Implementation of New Controls
- Employee Training
System Assessment and Design
Our M&A advisors assist our clients to integrate their acquisition target’s financial operations. Our consultants provide expert pre-analysis of our client’s and potential target’s financial system solutions. With this analysis performed, our team will provide management with recommendations for which systems to continue to use and whether a redesign of existing systems or implementation of new systems is required to maximize the synergies of the merged companies post-acquisition.
Redesign of Processes and Workflow
In combination with our assessment of the combined companies’ system design and post-acquisition, our M&A advisors assist our clients to design new processes and workflows to maximize the use of those systems and minimize the use of manual processes.
Documentation and Implementation of New Controls
Upon completion of the steps above around systems and processes, our M&A advisors will document new system and process controls for internal management or SOX compliance.
Based upon the recommendations provided by our M&A advisors, management will likely decide to implement significant changes to their company’s systems, processes, and controls. As part of our services, we will train your employees to understand what is changing and how to maintain those changes post-acquisition.
Purchase Accounting (ASC 852)
Our team provides technical services for the accounting of M&A transactions as business combinations in accordance with ASC 852. The services we provide include:
- Generation of Entries and Push-Down Accounting
- Reconciliation of Valuation to Reporting
- Creation of Footnote Disclosures
- Memorandum Writing
Generation of Entries and Push-Down Accounting
A significant part of M&A transactions is recognizing business combination accounting, whereby the acquiree’s identified assets and liabilities must be fair valued on the acquirer’s financial statements. The valuation of these assets and liabilities can be extremely detailed and is usually subject to continuous change as more information becomes available to the acquiring company. The initial valuations and subsequent changes to these valuations require the journal entries related to the acquisition to change. Our team of experts is available to help you track these changes and ensure accurate recording for reporting purposes.
Additionally, companies have the option to implement push-down accounting, whereby the valuation of the acquired company is recorded within its own accounting records. Our team can help you navigate the complexities of recording the valuation adjustments in each of the acquired companies and their subsidiaries.
Creation of Footnotes Disclosures
Our consultant team examines and arranges your financial statements’ footnotes to ensure that the items in the company’s balance sheet, income statement, and cash flow statement are clearly presented. We understand that footnote disclosures outline the story of your company, retelling the results in operations and completing the information between the financial statements. We use our years of experience and expertise to ensure your documents’ footnotes show the required disclosures, accounting methodologies used, any modifications to methodologies from previous reporting periods, and upcoming transactions that could impact future profitability.
Reconciliation of Valuation to Reporting
Due to the complexities and potential errors inherent with the valuation of a consolidated entity’s assets and liabilities, our firm offers services to reconcile the acquisition date accounting recorded by the acquiring company to the valuation reports provided by valuation experts.
Our services include creating documentation that analyzes your M&A transaction and concludes whether it meets the definition of an asset purchase or a business combination. Further, we will document processes used to identify assets and liabilities, the valuation methodologies utilized for all identified assets and liabilities, and the controls in place for the valuation, recording, and reporting of those assets and liabilities.
H4D Consulting’s team assesses and organizes your intangible assets, such as intellectual property and non-monetary government grants. It’s understood that your firm’s intangible assets are oftentimes indefinite, so we work to ensure that they are properly maintained for long-term timelines.
What Our Team Offers
Every member of H4D Consulting is certified in Lean Six Sigma, a nationally recognized project management certification, and provides specialized knowledge in acquisitions, divestitures, bankruptcy, and project management. With decades of combined experience, H4D Consulting’s M&A advisors provide expert knowledge on consolidating companies and their major business assets.
Our founder, Brian Hungerford, is a certified public accountant with over twenty years of experience, specializing in derivatives and technical accounting as an auditor before laying the foundations for what H4D Consulting is today.
Here 4 Our Community
H4D Consulting aims to be an active part of its community—in big and small ways. Our team serves as coaches for youth sports, volunteers in local Houston charity organizations, and participates in local fundraising events and church choir events. We are proud to be a part of the following organizations:
• Meals on Wheels
• Houston Food Bank
• Houston Jewish Community Center
• Houston Livestock Show and Rodeo
We believe in the synergetic relationship between businesses in our communities—the betterment of one is the betterment of the other.
Optimize Your Business with the Experts
The H4D Consulting team aims to empower each client and optimize their business operations, taking thorough steps to improve your company’s project management. From bankruptcy to asset acquisitions, we are here for your project management needs. Equip your business with effective solutions and contact our consultant team today.