M&A: Impact of New Revenue Recognition and Lease Accounting Standards on Deal Terms
Revising Terms to Reflect Adjustments to EBITDA, Valuations, Working Capital, Earnouts, Due Diligence, Reps and Warranties
This program has been cancelled
A live 90-minute CLE webinar with interactive Q&A
This CLE webinar will examine the impact of new lease accounting and revenue recognition standards on M&A transactions beginning in 2019. The panel will discuss how the new standards could affect M&A including: target company EBITDA and valuations, due diligence and transition issues, and the terms of acquisition agreements including working capital adjustments, earnouts, and reps and warranties.
- The new revenue recognition standard (ASC 606, ASU 2014-09)
- Five-step process to recognize revenue arising from contracts with customers
- The treatment of certain costs associated with obtaining and fulfilling contracts
- The new lease accounting standard: IFRS (IFRS 16) and GAAP (ASC 842)
- Effect of new revenue recognition standard on M&A deals
- EBITDA and business valuations
- Forecasts and projections
- Working capital adjustments
- Due diligence
- Debt covenants associated with deal funding
- Impact of new lease accounting standard for M&A deals
- EBITDA and earnouts
- Valuing lease liabilities in purchase agreements
The panel will review these and other relevant issues:
- What is the new revenue recognition standard and how does it change the evaluation of a company’s contracts?
- How might the new revenue standard affect target company valuations?
- How does the treatment of operating leases differ under the new lease accounting standards and how does it affect a target’s financial statement?
- How should earnout provisions address the new revenue recognition and lease accounting standards?
Mr. Naisbitt is a strategic financial leader with a broad and diverse base of industry and functional experience. He... | Read More
Mr. Naisbitt is a strategic financial leader with a broad and diverse base of industry and functional experience. He brings demonstrated experience with acquisitions, divestments, mergers, strategic planning, business turnarounds and funding transactions.Close
to be announced.