Acquisition accounting for a $2.8 billion vertical acquisition

Acquisition accounting for a $2.8 billion vertical acquisition

A multi-billion-dollar publicly traded company completed a vertical acquisition of another publicly traded company in the metals and mining industry. The acquirer engaged Stout to perform an acquisition accounting valuation associated with a variety of acquired assets and assumed liabilities, including a high-level, pre-close estimate for pro forma financial statement reporting.

The scope of the project included the valuation of various tangible assets across the acquired company’s three reporting units and over 30 locations, including inventory, owned and leased real property, and personal property. Intangible assets within the scope included trade names and trademarks, developed technology, customer relationships, and various unfavorable supply contracts. The scope of the project also included non-controlling interests in various third-party investments.

We valued all assets and liabilities outlined in our scope within management’s timeline, and the client was able to meet its financial reporting requirements.