Enron defrauded employees and investors, Tyco executed fraudulent acquisition accounting, ZZZZ Best committed forgery and theft.
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Bank of New York, which was founded in 1784 by Alexander Hamilton, America's first Treasury secretary, knows that hostile acquisitions are rarely able to use an accounting process known as pooling, which is much kinder to the profitability of the combined firms than the alternative acquisition accounting.
It seems banks are much weaker today thanks to bailouts of the financial and accounting variety that delay their necessary acquisition by better managers, not to mention the capital destroyed over the years due to poorly run banks being given new leases on life.
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In the past decade the storied Maumee, Ohio auto parts maker had survived a misguided acquisition binge, a hostile takeover attempt, an accounting scandal, a bankruptcy filing, a taxpayer bailout of two of its largest customers and the Great Recession.
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Scrutiny from the SEC recently caused the company to abandon a much-criticized accounting method that swept its staggering customer-acquisition costs under a rug.
At least one year before the H-P acquisition, an Autonomy executive brought concerns about the company's accounting practices to U.S. regulators including the SEC, according to people familiar with the matter.
Billabong said the 10-day exclusivity period of takeover talks would allow Sycamore to engage an "internationally recognised accounting firm to complete a confirmatory quality of earnings analysis, typical of an acquisition debt financing".
The acquisition, however, will make the company bigger and more expensive for potential acquirers, likely accounting for the slide in its stock price on Wednesday. (See "New Heights For Cleveland-Cliffs") Robson also noted that some investors may have left because they had wanted a straight iron-ore play.
Here, CAC is cost of customer acquisition, MRR is monthly recurring revenue and software margin is the cash they keep for each customer after accounting for support and other costs.
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