Accounting acquirer vs legal acquirer – US GAAP under a SPAC transaction

Accounting acquirer vs legal acquirer – US GAAP under a SPAC transaction

Accounting acquirer vs legal acquirer – US GAAP under a SPAC transaction

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  • On December 17, 2022
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  • Navin Sankhala

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Navin Sankhala
Partner - International Assurance

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Accounting acquirer vs legal acquirer – US GAAP under a SPAC transaction

In the fast-paced world of SPAC transactions, it’s essential to understand the difference between accounting and legal acquirers. The USGAAP (United States Generally Accepted Accounting Principles) evaluation process can differ greatly depending on which type of acquirer you are dealing with.

Accounting Acquirer: This acquirer is focused on financial and accounting considerations. They use the USGAAP to evaluate a target company’s financial performance and ensure that its financial statements follow accounting standards. In addition, the accounting acquirer is interested in financial statements, accounting systems, and financial reporting processes.

Legal Acquirer: This type of acquirer is focused on legal considerations. They use the USGAAP to evaluate a target company’s legal structure and ensure that it follows all relevant laws and regulations. In addition, the legal acquirer is interested in contracts, permits, licenses, and other documents.

Both accounting and legal acquirers play a critical role in the SPAC transaction process. As a result, you can make well-informed decisions and guarantee the success of your transaction by being aware of the differences between these two categories of acquirers.

Choose a reliable partner who understands the USGAAP evaluation process and has experience working with both accounting and legal acquirers. Contact us to learn more about how we may assist you as you navigate the difficulties of a SPAC transaction.

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