A company may need to implement or remedy controls, procedures, and policies appropriate for a public company that were not already in place in the acquired company.
As a public company’s subsidiaries, they are required to be operated under special rules, such as rules on preparation of financial documents. Thus, if Google acquires a company, it may need to implement or remediate controls, procedures and policies in order to standardize the acquired company’s performance. However, it may consume lots of time and money. Moreover, most companies purchased by Google by 2006 are small private company and it will increase risk of management for Google if Google want to transfer them to public companies. There may be potential difficulties on integration of each company’s accounting, management information, human resources and other administrative systems.
Lack of research and explanation of the role of the management accountants in M&A integration process raises some important questions for senior financial managers charged with the responsibility of integrating the various functions and tasks inherent in the MAS (management accounting systems) integration process.
For example: when a company acquires another for a specific technology it developed and then in the confusion of integrating the two companies mistakenly closes the department that created the targeted technology asset.
Spending management time on acquisitions may temporarily divert attention from operating activities of Google.
One of Google’s growth strategies is the acquisition of complementary businesses and technologies, before acquisition ,to identify a suitable acquisition candidates takes a lot of time; when we make acquisitions, a significant amount of management time and financial resources may be required to complete the acquisition and integrate the acquired business into our existing