Financial integration of new acquisitions: how to manage growth without losing control

We discussed the importance of scalable accounting and financial processes in a previous article – Accounting as the infrastructure for scalable growth. That article focused primarily on how to build a solid, standardised and replicable foundation for group growth.  However, the real test of this foundation comes when it starts being used to its full potential. For example, when new companies enter the group structure.

In this situation, how can you manage not only the transaction itself, but also its subsequent financial integration? How can you approach the entire process in a way that is fast and efficient? And how can you maintain control of the group and the quality of financial information on which key decisions by investors and management are based?

Integration does not begin after signing, but before

The foundations for successful integration are laid even before the transaction is concluded. From an accounting and tax perspective, well-prepared financial due diligence and detailed knowledge of the accounting policies of the acquired target are key sources of information at this stage. Another very important issue is the correct structuring of the transaction, which has a fundamental impact not only on tax efficiency, but also on the future simplicity of management, reporting and integration itself.

An improperly designed transaction structure can lead to unnecessary complications in the group structure, for example by creating duplicate or "empty" holding companies without any real economic function. Such a structure subsequently generates additional costs for administration, audit, accounting and legal services, complicates the flow of dividends and financing, and often requires additional restructuring steps shortly after the acquisition. From a tax perspective, poor structuring can lead to unnecessary stamp tax payments, inefficient VAT application (e.g. for transaction costs or interest), taxation of interest flows including withholding taxes, limited use of tax losses or the emergence of transfer pricing tax risks. A typical consequence is also additional costs for advisors who have to resolve problems ex post that could have been eliminated at the structure design stage.

Without reliable financial due diligence, it is impossible to obtain a realistic picture of the company's actual financial condition or to identify risks that may affect not only the value of the transaction but also its subsequent integration. Equally important, however, is knowledge of the target company's accounting policies—that is, how revenues, expenses, assets and liabilities are recognised, measured and presented. This information plays a critical role not only in preparing the transaction documentation but also in planning financial integration.

From an accounting perspective, the transaction documentation should be unambiguous, transparent and practically applicable—especially in situations where significant post-acquisition mechanisms, such as earn-out payments, valuation of options to purchase minority interests or other follow-up steps, are based on the acquired company's accounting outputs. In practice, however, we often find that information about a completed acquisition only reaches the accounting department once the transaction documentation has already been finalised. This subsequently leads to ambiguities in interpretation, additional adjustments and a considerable amount of consumed time and capacity across all parties involved.

This is why it makes sense to involve accounting representatives as early as the acquisition preparation phase—not as a formal control element, but as a partner who helps ensure that the transaction structure is accounting-feasible, tax-efficient, understandable and ready for seamless integration. Pre-transaction preparation should therefore also include systematic mapping of differences in accounting policies, processes and levels of accounting detail. Understanding the scope of necessary convergence adjustments allows for the realistic planning of integration steps and avoids improvisation after the transaction is closed.

Acquisition as the beginning, not the end

It is important to realise that the acquisition itself is only the first step. The real value of the transaction begins to materialise only when the newly acquired company becomes a functional part of the larger group. It then becomes clear whether growth is built on solid foundations or whether each subsequent acquisition increases complexity, reduces transparency and slows down decision-making.

Successful financial integration must therefore be managed quickly, systematically and with a view to further growth. Only then can individual acquisitions become a sustainable and repeatable strategy in the long term.

What goes wrong most often during financial integration

One of the first problematic points is the often insufficient clarification of convergence with the group's accounting policies and processes. If this convergence does not occur to a sufficient extent, there is a risk of inconsistent reporting, different definitions of key performance indicators, prolonged closing dates and a gradual deterioration in data quality, often paralysing the ability to compile a reliable consolidation.

Another common weakness is the technical integration of the acquired company into the group reporting solution. Key issues include the method of connection to the reporting platform, the correct recording of opening balances, the frequency and automation of data flows from the acquired company's ERP systems and the ability to work with different system environments. Underestimating this phase usually leads to limited visibility and increased pressure on finance and management.

Intercompany transactions and consolidation: underestimated yet crucial

For proper integration, it is essential to correctly define intercompany transactions from the outset – not only at the level of current flows, but also at the level of opening balances in the balance sheet. The acquired company must be able to identify and label intercompany transactions in accordance with group methodology, which is key to consolidation.

At the same time, it is necessary to consider tax and transfer pricing implications. Although these are not usually a priority in the early days of integration, a well-designed mechanism for identifying intercompany transactions greatly facilitates transfer pricing in the later stabilisation phase.

From a consolidation perspective, it is also necessary to take into account the expectations of management and investors, who often require data to be comparable with the previous period. This means that it is necessary to work with historical figures for the period prior to acquisition for management purposes, while respecting the statutory requirements according to which data are consolidated only from the date of acquisition of control. For more significant acquisitions, new cases must also be taken into account when planning the audit, including discussions on the allocation of the purchase price and ensuring sufficient audit coverage at the group level.

JHow to integrate successfully so that acquisitions can be repeated

The basic principles of successful financial integration are well known, but their consistent implementation is what ultimately determines the success or failure of the entire acquisition strategy in practice:

• Allocate sufficient professional capacity to integration – integration is not a "side project”, but a fully-fledged phase of the transaction with a direct impact on the value of the investment.
• Ensure strong integration management – integration must have a clear owner, who is directly responsible for coordinating all the steps, decision-making and adherence to the schedule. Without clear responsibility, integration becomes fragmented and loses momentum.
• Proceed in a swift but disciplined manner – the pressure to move quickly must not lead to short-sighted solutions. Key issues of accounting policies, structure and reporting connections must be clarified unequivocally.
• Build on standards, not on ad hoc solutions – every exception increases complexity and reduces the ability to scale further.
• Work with a replicable integration framework that can be applied across acquisitions without having to "reinvent integration" each time.
• Clearly separate group "core" rules from local particularities to maintain flexibility without compromising data consistency.
• Systematically learn from previous acquisitions and apply these lessons to further improve the integration process.

It is this level of management and standardisation that distinguishes groups that can truly scale acquisitions from those that tackle each new integration from scratch, with increasing improvisation and costs.

Conclusion

The financial integration of an acquisition fundamentally influences whether the transaction becomes a real source of value or just another factor increasing the complexity of the group. Accounting, reporting, consolidation—and, even in the pre-transaction phase, proper structuring—do not play a supporting role here. Together, they form a management infrastructure that enables controlled, transparent and repeatable growth.

Practical experience shows that many groups manage integration, but often without a clearly defined model for further acquisitions. Each new transaction then means a new solution, new exceptions and an additional burden on the finance teams. In contrast, groups that have well-thought-out structuring, uniform methodologies, standardised processes and a strongly managed integration phase with clear responsibilities from the outset are able to integrate acquisitions more quickly, with less risk and without gradually eroding clarity and control.

Hence, the key to success lies not only the technical correctness of each step, but also in sufficient attention, capacity and management devoted to integration. Once acquisition growth becomes a recurring model, the demand for specialisation, coordination and experience in setting up structures and processes that work in the long term—not just for a single transaction—also grows. This is where the benefits of a well-coordinated team often come into play, as it can manage integration end-to-end and ensure that it remains a tool for growth rather than a hindrance.