With lingering uncertainty in a post-pandemic market and increases in both supply and demand, worldwide M&A opportunities have reached trillions of dollars.

To highlight issues that companies are facing both before and after acquiring a business, in this episode of Accounting for the Future, host Armand Capisciolto, BDO's National Accounting Standards Partner and Accounting Advisory Services Leader, is joined by two BDO advisors: Jamie Windle, Managing Director, M&A and Capital Markets, who specializes in financial due diligence, and Ziad Akkaoui, Risk Advisory Services Partner. Together they discuss how some decisions made before a deal can cause the greatest hurdles after a deal closes.

What You'll Hear In This Episode:

[1:15] Two major factors that are leading into the $350 billion M&A market.

[5:00] Buying opportunities are increasing as more companies are exiting from the uncertainties of today's market.

[7:10] Current industry trends in M&A, including within the broader healthcare market.

[11:02] Owner arrangement considerations when structuring an M&A deal.

[15:35] Top issues that companies overlook before they buy a company.

[18:45] Considerations from before a deal that cause the greatest hurdles after a deal.

[21:43] Strategies for merging a young company into a mature company while maintaining its entrepreneurial spirit.

[27:06] Top issues that clients need to pay more attention to after a deal.

[29:01] Sustainability and ESG reporting considerations when working with M&As.

Mentioned:

BDO Jamie Windle Ziad Akkaoui

Additional Insights:

Six under-the-radar accounting pitfalls when buying a business 3 Accounting issues to tackle after a deal closes

Following the right Generally Accepted Accounting Principles (GAAP) provides a communication and deal-making tool to help move your business plans forward. Opportunities in today's volatile marketplace come and go quickly, and those who have put in the work of advanced planning will be prepared to seize opportunities as they arise.

In this episode of Accounting for the Future, host Armand Capisciolto, BDO's National Accounting Standards Partner and Accounting Advisory Services Leader, welcomes BDO partners Mikaela Taylor and Dave Rasmussen. Both Partners advise engagement teams and clients on accounting, regulatory, and audit matters and have joined the podcast for a conversation about choosing the right GAAP, shareholder decisions, options available in Canada, and the benefits of being prepared to act when opportunities arise.

What You'll Hear In This Episode:

[1:51] What are GAAP for businesses in Canada, IFRS, and ASPE, and are they required?

[3:18] Some private enterprises are opting to use U.S. GAAP, which is permitted if they are incorporated and have unanimous approval.

[5:02] Not using any GAAP at all is an option under certain circumstances.

[6:40] If GAAP isn't required, why would an entity choose to use it at all?

[8:53] Common drivers behind choosing to utilize GAAP.

[12:16] Dave offers examples of scenarios in which a client would want to adopt IFRS.

[17:43] Mikaela highlights ideal times when companies should consider U.S. GAAP.

[20:41] Strategic planning tips to help move a client forward.

[22:51] When are ASPE accounting standards enough?

[24:33] Questions companies need to ask when beginning to follow an accounting framework.

Mentioned:

BDO Mikaela Taylor Dave Rasmussen

Additional Insights:

ASPE vs. IFRS (vs. U.S. GAAP): Choosing Accounting Standards

Despite the pandemic, 2020 and 2021 were extremely busy years in the active capital markets with a host of companies going public and successful funds raised. So far, 2022 has presented a slowdown in the public markets, but what does that mean for early-stage companies that are looking to raise money now? In this episode of Accounting for the Future, host Armand Capisciolto, BDO's National Accounting Standards Partner and Accounting Advisory Services Leader, sits down with Jeffrey Stanger, President of ITB Solutions, Inc.

Jeffrey works with both private and public companies to successfully access capital markets, working alongside registered investment dealers. Jeffrey shares his insights into what it takes to raise money in today's tough market.

What You'll Hear In This Episode:

[2:42] Navigating early-stage companies through tighter capital markets.

[4:52] Ways companies can prepare to showcase what they have to offer.

[7:19] The benefits of raising funds in a tighter market.

[9:11] The right time to start thinking about accessing the public market.

[10:23] Accessing a larger audience in a tough market.

[13:46] Factors that can negatively impact the market.

[15:45] Jeffrey's advice to companies that are trying to raise money.

Mentioned:

BDO Jeffrey Stanger

Additional Insights:

Financial Foresight: Getting the accounting right, right now

An impressive number of companies have gone public in recent years, but the benefits of being a public company are not always available to certain companies during a period of economic uncertainty. Does it make more sense to take a public company private? In this episode of Accounting for the Future, host Armand Capisciolto, BDO's National Accounting Standards Partner and leader of Accounting Advisory Services, is joined by Georges Dubé, Partner at McMillan, Capital Markets & Securities team. Together they discuss the benefits, mechanisms, and considerations of taking a public company private.

What You'll Hear In This Episode:

[1:00] Georges works with both the public and private sides of capital markets.

[2:26] What motivated so many companies to go public in recent years?

[3:40] The key benefits of becoming a public company aren't always available.

[7:05] Pros and cons of companies choosing to go private.

[12:33] Financing considerations in today's uncertain market.

[16:48] Mechanisms that companies can use to go private.

[20:55] Key differences between the ways companies can go private.

[24:02] Can public companies become private again without getting up-to-date on compliance issues?

Mentioned:

BDO Georges Dubé

Additional Insights:

Going Private: Why and how to take a public company private

With inflation rates at their highest since the 1980s and unprecedented interest rate increases, companies are left wondering what steps they can take to mitigate the impact of the current economic environment. In this episode, host Armand Capisciolto, BDO's National Accounting Standards Partner and leader of accounting advisory services, is joined by Kevin Meyler, national leader of BDO's Business Restructuring and Turnaround Services for a discussion about managing the current economic environment.

What You'll Hear In This Episode:

[1:55] First advisory steps that companies can take to mitigate the current economic environment.

[4:05] The vast and fast pace of change in the current economy is not limited to any one industry.

[5:24] Kevin offers specific ways that companies can mitigate the impacts of inflation.

[8:30] Is it more challenging for companies to secure financing in today's market?

[11:00] Handling the increasing cost of capital in sustainable ways before seeking financing.

[12:58] Advice for proactively managing debt covenants.

[16:30] What might happen when a company breaches its debt covenants?

[19:52] A profile of a successful breach and how a resolution was reached quickly.

[21:05] Kevin shares his opinion of the Canadian entrepreneur in today's turbulent times.

Mentioned:BDO Kevin Meyler

Additional Insights:How businesses can mitigate inflation risks 80/20 Profitability Analytics

Forward-thinking companies are working toward sustainability and increasing their focus on environment, social, and governance practices. Environmental and social issues are now business issues, but what is the impact of these efforts on financial reporting?

In this episode, host Armand Capisciolto, BDO's National Accounting Standards Partner and leader of Accounting Advisory services, is joined by Kyle Hulme, a BDO alumnus and previous member of our Strategy and Sustainability Consulting team. Together they discuss the link between sustainability and financial reporting.

What You'll Hear In This Episode:

[1:45] Are sustainability and ESG interchangeable terms? Not exactly, and Kyle explains why.

[3:26] Insights into all that is entailed in advising a client's sustainability strategies.

[6:21] Who is the primary owner of sustainability projects within an organization?

[9:45] The inevitable evolution of the finance department based on reporting requirements and pending regulation.

[12:30] Potential risks and opportunities created by sustainability strategies.

[15:20] The impact of sustainability transitions and timelines from a financial spending perspective.

[22:32] The value of focusing on sustainability in business today, even if mandatory reporting is not in place yet.

Mentioned: BDO Armand Capisciolto Kyle Hulme

Additional Insights:Why CFOs should make sustainability a part of their financial reporting today

This week we welcome Barbara Palmegiani, Partner and CFO Services Leader with BDO Canada, to talk about the significant impact The Great Resignation is having on the already lean finance profession. There is no formula to guarantee employment, but through transformation businesses can keep up with the future of the finance function. Spoiler alert: it's about more than technology.

What You'll Hear In This Episode:

[1:35] Barbara talks about the fact that educated knowledge workers' jobs could soon become threatened.

[2:48] What are "future-fit skills"?

[3:18] We shouldn't view machines as competitive interlopers, but instead as collaborators and partners.

[4:11] Barbara shares how we can improve the motivation of CPAs to go the extra mile in their current roles.

[4:37] There's no formula to guarantee your employment, but what we can do is keep up with the future of finance function.

[5:42] Barbara talks about finance function in the past and how it differs from the present day.

[13:45] Employers are finding themselves in probably the most competitive market we've ever seen, and it's a significant challenge for leaders.

[17:19] Workers want to have the option for remote work in many cases, but also want more connectedness.

[18:11] The CFO role can be a very lonely place. That's why having a community helps!

[20:35] There is a record number of CFOs resigning from the finance profession today. What risks does this pose to organizations?

[24:15] Barbara shares recommendations for managing resignation risks on a timely basis.

[28:43] What are the best next steps for CFOs in this decade of disruption?

Mentioned: Barbara Palmegiani BDO The Squiggly Career: Ditch the Ladder, Discover Opportunity, Design Your Career, by Helen Tupper and Sarah Ellis

With compliance conversations heating up, sustainability reporting and options for meeting requirements continue to be top priorities for proactive businesses. This is the second part of our conversation with BDO partners Andrew Buchanan, BDO's Global Head of IFRS and Corporate Reporting, and Christopher Tower, BDO USA's ESG Strategy and Services Leader. Together they explore key sustainability requirements proposed by the Canadian Securities Administrators, the U.S. Securities and Exchange Commission, and the EU Corporate Sustainability Reporting Directive.

What You'll Hear In This Episode:

[1:30] Specific key requirements and significant differences of the various scopes across the countries.

[6:49] Andrew defines scenario analysis and highlights proposal requirements from the ISSB.

[9:40] Scenario analysis and disclosure requirements from the U.S. perspective.

[10:33] Andrew highlights the presentation draft risks and proposed guidance for disclosures.

[14:07] Acronym definitions and clarifications regarding their purposes.

[15:30] Christopher addresses the disclosure of unfair labor practices and the burden of proposed disclosures within financial statements.

[21:20] Which disclosures are subject to audit regardless of the size or type of filer? Andrew offers caution regarding the real need to aggregate.

[24:05] Similarities between various ISSB proposals and disclosures.

[26:40] Proposed timelines for compliance dates and challenges that will hinder meeting them.

Mentioned:

BDO Andrew Buchanan Christopher Tower

Additional Insights:

SUSTAINABILITY REPORTING: 10 Questions boards should know the answers to Q1 2022 Sustainability Reporting Update

Sustainability reporting is gaining momentum - and fast! Businesses that aren't already thinking about their ESG strategy are at risk of falling behind their competitors. To unravel some of the details regarding sustainability reporting around the world, in this two-part conversation we welcome BDO partners Andrew Buchanan, BDO Global's Head of IFRS and Corporate Reporting, and Christopher Tower, BDO USA's ESG Strategy and Services Leader. Together they address how sustainability reporting is impacting businesses in Canada, the USA, and Europe.

What You'll Hear In This Episode:

[2:22] Why should every member of the firm care about the varied and often confusing sustainability reporting jurisdictions?

[4:40] Christopher explains why private companies should have an interest in the requirements set by securities regulators.

[8:06] The role of a proactive ESG strategy in your company's brand image.

[9:03] EU proposals vary from the Canadian and US proposals — Andrew lists which entities will be required to comply with EU requirements.

[12:35] Regardless of jurisdiction, companies need to consider all of the implications and requirements of all the jurisdictions they do business with.

[13:00] Andrew details the goals of international sustainability standards.

[17:06] Is compliance with proposed ISSB standards consistent with proposed SEC requirements?

Mentioned:

BDO Andrew Buchanan Christopher Tower

This week, we welcome Anne-Marie Henson, BDO partner from our Montreal Office. Anne-Marie works with public companies, as well as many technology companies in both the start-up and scale-up stages. We discuss the difference between a scale-up and a start-up, why taking time to think over investment decisions matters, and a few success stories of companies who understood the benefits of investing time in accounting and finance upfront.

What You'll Hear In This Episode:

[1:53] What is the difference between a start-up and a scale-up?

[5:35] Companies that are successful as they grow and scale are companies that see accounting and finance as more than just compliance.

[8:40] When a start-up ensures they have the right information to make appropriate business decisions, it gives investors confidence and that warm fuzzy feeling.

[11:12] The implications of accounting could have real long-lasting business implications.

[13:48] Anne-Marie gives an example of a company that succeeded because it understood the benefits of investing time upfront.

[20:38] The first area where we see the most in terms of complexities is financing.

[31:43] Accounting can be really complicated, especially when a company is at the stage where you're trying to raise funds and you don't have access to traditional financing. The more you know about the implications, the better prepared you are as a founder to be able to advance and communicate these implications to your stakeholders.

Mentioned:

Anne-Marie Henson BDO

Additional Insights Top 4 Accounting Challenges Businesses Face As They Scale Up Click here to read article