Earnout in M&A operations in Brazil and their impact on Equity Valuation
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| Format: | Artículo científico |
| Language: | en |
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Universidad de Concepción
2024
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| _version_ | 1876423616442138624 |
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| author | Carlos Elder Maciel de Aquino |
| author_facet | Carlos Elder Maciel de Aquino |
| contents | Earnout in M&A operations in Brazil and their impact on Equity Valuation Carlos Elder Maciel de Aquino Fabio Cunha Dower Fernando Dal-Ri Murcia Isabel Cristina Lopes Ricardo Anhesini Souza Administración y Contabilidad IFRS 3 Contingent price Conditional payment Business combination Mergers and acquisitions Purpose: to evaluate the recording of information related to M&A (Mergers and Acquisitions) transactions that include earnout as an element of contingent consideration in accordance with the accounting standard IFRS 3 - Business Combination and the key aspects of accounting information disclosure as per the IASB Conceptual Framework for Financial Reporting. Methodology: We conducted exploratory, descriptive, and qualitative research that adopted a three-dimensional view to analyze the economic, legal, and accounting aspects of business combination transactions carried out with the use of Earnout. We considered all M&A operations conducted in Brazil between 2016 and 2020 by companies listed on the Brazilian Stock Exchange, which included earnout components. Findings: Our findings indicate that acquiring companies comply with the regulatory requirements of IFRS 3. However, they do not consistently provide uniform, comprehensive, and transparent information regarding earnout transactions. 2024 artículo científico 0719-6245 https://www.redalyc.org/articulo.oa?id=560876830002 https://www.redalyc.org/journal/5608/560876830002/ https://www.redalyc.org/journal/5608/560876830002/html/ https://www.redalyc.org/journal/5608/560876830002/560876830002.epub https://www.redalyc.org/journal/5608/560876830002/movil https://doi.org/ 10.29393/RAN10-2EVCR50002 en http://www.redalyc.org/revista.oa?id=5608 Revista Academia & Negocios application/pdf Universidad de Concepción Revista Academia & Negocios (Chile) Num.1 Vol.10 |
| format | Artículo científico |
| id | redalyc_560876830002 |
| institution | Redalyc |
| language | en |
| publishDate | 2024 |
| publisher | Universidad de Concepción |
| spellingShingle | Earnout in M&A operations in Brazil and their impact on Equity Valuation Carlos Elder Maciel de Aquino Administración y Contabilidad IFRS 3 Contingent price Conditional payment Business combination Mergers and acquisitions Earnout in M&A operations in Brazil and their impact on Equity Valuation Carlos Elder Maciel de Aquino Fabio Cunha Dower Fernando Dal-Ri Murcia Isabel Cristina Lopes Ricardo Anhesini Souza Administración y Contabilidad IFRS 3 Contingent price Conditional payment Business combination Mergers and acquisitions Purpose: to evaluate the recording of information related to M&A (Mergers and Acquisitions) transactions that include earnout as an element of contingent consideration in accordance with the accounting standard IFRS 3 - Business Combination and the key aspects of accounting information disclosure as per the IASB Conceptual Framework for Financial Reporting. Methodology: We conducted exploratory, descriptive, and qualitative research that adopted a three-dimensional view to analyze the economic, legal, and accounting aspects of business combination transactions carried out with the use of Earnout. We considered all M&A operations conducted in Brazil between 2016 and 2020 by companies listed on the Brazilian Stock Exchange, which included earnout components. Findings: Our findings indicate that acquiring companies comply with the regulatory requirements of IFRS 3. However, they do not consistently provide uniform, comprehensive, and transparent information regarding earnout transactions. 2024 artículo científico 0719-6245 https://www.redalyc.org/articulo.oa?id=560876830002 https://www.redalyc.org/journal/5608/560876830002/ https://www.redalyc.org/journal/5608/560876830002/html/ https://www.redalyc.org/journal/5608/560876830002/560876830002.epub https://www.redalyc.org/journal/5608/560876830002/movil https://doi.org/ 10.29393/RAN10-2EVCR50002 en http://www.redalyc.org/revista.oa?id=5608 Revista Academia & Negocios application/pdf Universidad de Concepción Revista Academia & Negocios (Chile) Num.1 Vol.10 |
| title | Earnout in M&A operations in Brazil and their impact on Equity Valuation |
| topic | Administración y Contabilidad IFRS 3 Contingent price Conditional payment Business combination Mergers and acquisitions |
| url | https://www.redalyc.org/articulo.oa?id=560876830002 https://www.redalyc.org/journal/5608/560876830002/ https://www.redalyc.org/journal/5608/560876830002/html/ https://www.redalyc.org/journal/5608/560876830002/560876830002.epub https://www.redalyc.org/journal/5608/560876830002/movil https://doi.org/ 10.29393/RAN10-2EVCR50002 |