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Question US firms are taking advantage of the cheap pound to snap up some of Britains most successful businesses at bargain prices. LexisNexis said that
Question US firms are taking advantage of the cheap pound to snap up some of Britains most successful businesses at bargain prices. LexisNexis said that 70% of the firm offers in 2021 involved overseas bidders up from 62% the year before. The total value of the firm offers involving overseas bidders rose too, from 29.8bn in 2020 to 60.1bn in 2021. US bidders specifically were involved in 27 of the 53 firm offers made in the UK market by overseas bidders in 2021, and those prospective deals had an aggregate value of 51.3bn. In 2020, US bidders were involved in 19 of the 42 firm offers announced, and those deals had an aggregate value of 13.1bn. With reference to relevant accounting scandals such as the 2015 merger of Kraft and Heinz, identify and critically discuss the main financial accounting issues that should be considered in these business combinations.
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