Advice on complex business transactions and their structuring

Companies are being faced with increasingly more complex requirements in international accounting by the International Financial Reporting Standards (IFRS) and the American accounting regulations US-GAAP. As a result, it is becoming increasingly more difficult to assess transactions and their reporting consequences. Once the contracts have been signed, it is often too late to prevent the negative consequences on reporting, future development of results and significant indices. PwC advises companies throughout the complete transaction process.

The accounting effects of planned transactions - such as company acquisitions, leasing transactions, factoring on equity capital, debt, sales realization or other performance indices - are difficult to assess. Joint ventures and outsourcing or financing measures also have an influence on reporting and future development of results and also have an effect on significant indices such as the capital to assets ratio, as well as control quantities such as EBITDA, return on sales, economic value added (EVA) or return on capital employed (ROCE) and other important underlying conditions (e.g. debt covenants).

Advice on reporting effects from the planning phase to the signing of contracts

PwC assists companies throughout a project and the complete transaction process - from the strategic planning phase to initial conceptual drafts, term sheets and draft contracts to final signing of contracts. In doing so, PwC's teams of specialists highlight the reporting effects of complex contracts and transaction structures. They identify and explain critical aspects. This procedure makes it possible to have selective influence on expected effects on reporting, future effects on results and significant control quantities and indices.

PwC analyses the reporting consequences of planned transactions and, as a result, creates a better basis in order to be able to assess the advantages of the transaction. At the same time, this procedure allows modifications to the transaction structure or contractual provisions.

Increased reliability of communications and external presentation

As a result there is a growth in the reliability of communications and external presentation towards shareholders, investors, banks and analysts. After all, this calls for companies knowing the reporting effects of alternative transaction structures and having reliable forecasts at their disposal.

In addition, PwC experts also illustrate alternative courses of action for the structuring of projects. As a result, adjustments can be made to contracts or transaction structures having an effect on the economic result of the planned transaction and therefore its presentation in the consolidated financial statements.

With a team of experienced specialists, PwC is involved from the early phase of strategy and project planning right the way through to signing of contracts, and at the same time helps to find alternative courses of action.
 

Phases of the transaction process

Contact us

Klaus Bernhard

Partner, Deals Accounting & Reporting

Tel: +49 89 5790-5240

Prof. Dr. Rüdiger Loitz

Assurance Technology & Innovation

Tel: +49 211 981-2839

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