Post-Acquisition Accounting Support – XoraH PLLC

post-acquisition Accounting Support

Post-acquisition accounting support to ensure a smooth financial integration. We help companies address purchase accounting adjustments, opening balance sheet issues, and ongoing GAAP reporting requirements after the deal closes.

Intro to Services

Closing an acquisition is a milestone — but for the accounting team, it is the beginning of an intensive period of work. In the weeks and months following a deal close, companies face purchase accounting completion, working capital settlements, opening balance sheet cleanup, system integration, and the first consolidated financial statement close. Without experienced support, this period creates significant risk of errors, audit findings, and missed deadlines.

Our post-acquisition accounting support services help acquirers navigate the post-close period with confidence. We work alongside your internal team to complete purchase accounting, address opening balance sheet issues, and establish the financial reporting infrastructure needed to manage the combined entity going forward.

What post-acquisition accounting involves

The post-close accounting period requires attention across several concurrent workstreams:

• Completing or finalizing purchase accounting under ASC 805, including the PPA and all required disclosures
• Processing working capital true-up adjustments per the purchase agreement
• Reviewing and correcting pre-acquisition accounting errors in the acquired entity\’s books
• Recording opening deferred tax assets and liabilities resulting from purchase accounting fair value adjustments
• Establishing the acquired entity\’s accounting policies in alignment with the parent company\’s policies
• First-period consolidation of the acquired entity into the parent\’s financial statements
• Preparing combined or consolidated financial statements for lender or investor reporting
• Addressing measurement period adjustments as new information comes to light during the measurement period

The standard applies to all transactions in which an entity obtains control of one or more businesses — including mergers, stock purchases, and asset acquisitions that qualify as business combinations. The accounting is complex, judgment-intensive, and subject to significant auditor scrutiny.

Our post-acquisition support services

purchase accounting completion and finalization

If purchase accounting was not fully completed at deal close — which is common under compressed deal timelines — we step in to complete the process. We finalize the PPA, record purchase accounting journal entries, and prepare the required ASC 805 disclosures for inclusion in your next financial reporting period.

opening balance sheet review and remediation

The opening balance sheet of an acquired entity is often the source of post-close accounting surprises. We conduct a structured review of the acquired entity\’s opening balance sheet, identify accounting errors or GAAP non-compliance carried over from the pre-acquisition period, and prepare correcting entries that establish a clean baseline for post-acquisition reporting.

working capital settlement support

Most purchase agreements include a working capital adjustment mechanism that requires a post-close true-up of the acquired company\’s net working capital against a target. We assist acquirers in preparing the closing working capital calculation, reviewing the seller\’s proposed statement, and supporting any dispute resolution process.

accounting policy alignment

When an acquired entity has been operating under accounting policies that differ from the parent company\’s policies, those differences must be identified and addressed. We compare the entities\’ accounting policies, identify divergences, and advise on the appropriate approach to aligning policies — including the accounting and disclosure implications of policy changes.

first consolidation close support

The first consolidated financial statement close following an acquisition is often the most complex close a company will experience. We provide hands-on support through the first close — assisting with intercompany elimination entries, acquisition adjustments, and the mechanics of preparing a combined or consolidated financial statement package.

measurement period adjustment management

Under ASC 805, the acquirer has up to one year from the acquisition date to adjust provisional purchase accounting amounts as new information is obtained. We track measurement period developments, advise on whether adjustments qualify as measurement period adjustments or post-measurement period corrections, and prepare the required accounting entries and disclosures.

Who benefits from post-acquisition accounting support

• Acquirers whose internal accounting team is managing integration without dedicated technical accounting resources
• PE-backed portfolio companies completing their first acquisition under sponsor ownership
• Companies that closed quickly and have incomplete purchase accounting that needs to be finalized before the next audit
• Businesses that have identified potential errors in the acquired entity\’s historical books that need to be assessed and corrected
• Any company facing its first consolidated financial statement close and needing experienced guidance through the process