The SEC Makes Sweeping Changes To The M&A Financial Statement And Pro Forma Requirements

Introduction

On May 21, 2020, the Securities and Exchange Commission (the "SEC") amended the financial statement and other disclosure requirements that apply when public companies acquire or dispose of a business or real estate operations.¹ The amendments simplify and rationalize the current rules, and should on balance decrease the regulatory burdens on public companies. The amendments continue the SEC's focus on reducing the regulatory burdens on public companies and facilitating access to public capital as part of its Disclosure Effectiveness initiative announced in 2013. While the changes are not effective until January 1, 2021, voluntary early compliance is permitted if the amendments are applied in their entirety from the date of early compliance.²