Lubniewski, Ryan

Beware of disappearing revenue in an acquisition

The article offers information on a rule featured at the Generally Accepted Accounting Principles (GAAP) which reduces the revenue of a company after an acquisition. It mentions several tips for company buyers to mitigate the impact of the rule after an acquisition or merger which include recognition of assets and liabilities at fair value, arrangement of compensation with sales personnel, and working with information technology (IT) specialists.