Advanced Accounting - Consolidation Case Fall 2019.docx - Consolidation Case To Paddle-up Accounting Department From Paddle-up Inc Board of Directors

Advanced Accounting - Consolidation Case Fall 2019.docx -...

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Consolidation Case To: Paddle-up Accounting Department From: Paddle-up Inc. Board of Directors – Chairperson Date: September 16, 2019 RE: Business Acquisition – Stream Company As discussed in today’s meeting, Paddle-up Inc.’s Board of Directors has requested pro-forma financial statements for several acquisition scenarios of Stream Company. For the past several years Paddle-Up Inc.’s Executive Management Team had experienced continued pressure from their investors for their lack of growth (markets share, revenue, and profits). On September 1, 2018 the Chief Executive Officer, Chief Operating Officer, and the Chief financial Officer all resigned. Previous to the Executive Management Team’s resignation, Paddle-Up Inc.’s Board of Directors were in discussions with Stream Company’s Board of Directors about a possible acquisition. The combination of constant pressure from investors and learning that the Board had been in negotiations with Stream Company, without their knowledge, sparked the abrupt resignations. Stream Company shareholders want cash for the sale of 100% of their company (via an Asset Acquisition). Paddle-Up Inc.’s Board of Directors prefers to buy 90% of Stream Company using a
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