# Subsidiary Mergers vs Asset Acquisitions

When migrating data in NetSuite, the key difference between **Subsidiary Mergers** and **Asset Acquisitions** is whether the **P\&L** is combined. In a merger, the P\&L is consolidated, while in an asset acquisition, only the **balance sheet** is affected.

**Subsidiary Merger (P\&L Consolidation)**

In a **subsidiary merger**, both entities’ P\&L must be merged, requiring full alignment of financials, including the chart of accounts and intercompany transactions. This is more complex, as the entire financial structure needs to be integrated.

**Asset Acquisition (Balance Sheet Only)**

An **asset acquisition** focuses solely on transferring assets, affecting only the balance sheet, with the P\&L of the acquired company remaining separate.

In either case as we are combining balance sheets, ensuring that foreign currency revaluations are correct can be challenging.   See separate cheat sheet article on approaches in this area.

**Key Takeaways:**

* **Mergers**: Involve combining both the P\&L and balance sheet, requiring more extensive financial integration and careful foreign currency handling across all accounts.
* **Acquisitions**: Focus on the balance sheet, making the process simpler, though foreign currency revaluation on asset accounts still requires attention.


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