Surgery Partners: Pushdown Accounting

Eli Amir and Marco Ghitti ()
Additional contact information
Eli Amir: Tel Aviv University
Marco Ghitti: SKEMA Business School

Chapter Chapter 17 in Financial Analysis of Mergers and Acquisitions, 2020, pp 271-281 from Springer

Abstract: Abstract Normally, following a change-in-control event, the acquirer recognizes the acquired assets and liabilities of the target at fair value at the time of acquisition, while accounting for goodwill and non-controlling interests when appropriate. However, since 2014, US GAAP allows subsidiaries that issue separate financial statements, following a change-in-control event, to elect pushdown accounting. This accounting procedure allows the subsidiary to present its own assets and liabilities, including goodwill, at fair value (similar to the basis used in the parent company). In this case, we analyze the financial statements of Surgery Partners, a company in the healthcare services industry, who was acquired by a major private equity investor and elected pushdown accounting. Using the information in the case, we construct the balance sheet of Surgery Partners immediately before the election of pushdown accounting. This allows us to analyze the impact of pushdown accounting on the company’s financial statements, and the reason for electing this procedure.

Keywords: Control; Push-down accounting; Reorganization; Acquisition; Preferred private placement (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-61769-1_17

Ordering information: This item can be ordered from
http://www.springer.com/9783030617691

DOI: 10.1007/978-3-030-61769-1_17

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().