Studies have shown that more than 50 percent of acquisitions fail to achieve their strategic purpose and create value. These companies find that the premium paid for the acquired company was greater than the value to the acquiring company. Some of the more high profile failures are Hewlett Packard’s acquisition of Autonomy as well as Time Warner’s acquisition of AOL.
Acquisitions are difficult transactions, and despite the statistics, all acquirers believe their transaction will add value.
In the August 8th online edition of HVACR Business, Carl Kampel, Director at Ellin & Tucker and Director in charge of Professional Standards, shares his thoughts and insights on the common pitfalls facing business owners when acquiring a business.
To read the article, please visit Avoid Common Pitfalls when Acquiring a Business on HVACR Business’ website.
Carl Kampel, CPA is the director in charge of professional standards at Ellin & Tucker, an advisory role that ensures all aspects of client accounting, regardless of the complexity, are conducted with the highest level of service and accuracy. His rich career spanning more than 30 years and personal contributions to financial and special reporting services standards of the audit and accounting profession have rippled internationally. He is a member of the FASB Emerging Issues Task Force and past vice chair of the AICPA Financial Reporting Executive Committee.