Accounting for Knowledge in Mergers and Acquisitions
The Serious Insight
Knowledge is central to the success or failure of a merger or acquisition. The value of many organizations is today based on potential future earnings rather than tangible property or operations. Assumptions about an organization’s knowledge, except perhaps intellectual property, and then not in its entirety, often get pushed off, or not addressed at all.
This Practice Insight will provide guidance on how to address knowledge during the four phases of a merger or acquisition in order to ensure a successful transition, the optimal leverage of combined assets, the unleashing of innovation during the process, and that important knowledge in the form of systems, procedures, social and human capital are retained and made available to the new organization.