acquirer

During a merger, it's important that the risk manager from the acquiring company confer with his counterpart to determine the other company's perception of risk, what model they have been using, whether they have a more conservative posture toward limits and retained losses, and if" they have identified and dealt well with all their exposures, said Austin, now principal and consultant at Austin & Stanovich Risk Managers LLC, Douglas, Mass.

Instead of creating a common sense of identity within the company, the acquiring company placed its emphasis on converting the acquired company's computer system to match the corporate system.

But an acquiring company can bring positives as well.

Then there's the loss of focus on the part of the acquiring company that may drive down productivity.

Help reduce any "culture shock" by identifying key company or country cultural characteristics of the acquired company and the acquiring company to assist in communications.

The major difference is that once the mutual is demutualized, the owner of all the stock will be the acquiring company rather than the open market.

In contrast, the purchase method requires the acquiring company to capitalize the fair market value of the target company's net assets.

Often, the acquiring company has a better credit rating and therefore a lower cost of funds and it can actually enhance profitability by paying back the acquired company debt.

In 1983, the SEC issued a Staff Accounting Bulletin in which it determined that the push-down method of accounting should be used to redetermine the basis of assets held by a company which is acquired, as long as the acquired company becomes substantially wholly owned by the acquiring company.

April 14 /PRNewswire/ -- APTC Plastics Acquiring Company L.

In the event of a merger with an acquiring company that beneficially owns a specified percentage of the company's stock, the rights "flip over" and become rights to purchase the acquiring company's stock at a 50-percent discount.

However, from an accounting perspective, the combination was a reverse merger in which Young Design was the acquiring company due to the former Young Design stockholders owning approximately 70% of the combined company and other reasons.

351 transfer may be a viable alternative to an A reorganization for transferring a disregarded entity to an acquiring company in a tax-deferred transaction.

Therefore, in a merger, the acquiring company and the acquired company are the same taxpayer for purposes of Sec.

Thus, the career fate of the acquired company's managers is under their own control rather than the control of their acquiring company.