Post Transaction Integration

Post-Transaction Integration

Post-transaction integration involves steps and processes taken to bring together two companies who have completed a merger or acquisition transaction. For example, after the acquisition of Company A by Company B, there would be post-transaction integration to bring the two companies together under one roof.

There are many reasons behind why two companies might decide to go through a transaction to become a larger entity such as expansion into new markets, increasing the product portfolio, increasing market share, economies of scale, technology change, and more. The success of the integration process is imperative to the short and long-term success of the transaction. It can also help avoid unnecessary tax costs or errors in financial reporting.

InGame Enterprise professionals can work with you to design a detailed step-by-step plan to make the post-integration process as seamless as possible. This plan has impacts on both the finance and tax aspects of the company being acquired or merged with.

On the finance side, this involves:

• Defining the future state of the finance group,
  including anticipated changes in roles and responsibilities
• Working with information technology on key priorities
• Mapping the target’s financials systems for seamless external reporting
• Developing managerial reports that inform decisions
• Establishing target dates for migrating off the target’s systems

On the tax side, this involves:

• Determining the deductibility of transaction costs
• Determining whether the transaction terminates the tax year of the target
• Determining whether stub period returns are needed
• Completing/reviewing stub period returns
• Updating the income tax provision calculations as part of acquisition accounting
• Determining the tax impact of any planned integration steps
• Legal entity rationalization, tax process redesign
• Reorganization of the tax department roles and responsibilities