Question about merging 2 Companies in SAP

Hi,
our client wants to merge 2 Companies, the company that is going to disapiar is not in SAP.
Our approach is to post the account balances and movements into SAP posting them in the SAP Co.COde, ant that is fine, the problem is that they want to get all the legal reporting (P&L, Balance Sheet...) separately for both companies in SAP.
We think that we could cover that requirement doing:
1. posting the merged company documents with and specific Doc. type. But we think that a lot of legal reports cannot be filtered/selected using Doc.type. It seems no to work.
2. the other thing that we have thought is to use "business area", but BA was out of our blue print and we are not sure what can happen creating BA when a CoCode (in fact several CoCodes) are already in production (went live some time ago).
I will really appreciate if someone can give me any approach about how to meet client's requirements.
Cheers

For a legal entity, you need to have separate company codes.
If it is just the ownership of the company that is being taken over and for all other practical purpose the taken over entity shall be a separate legal entity you can create a company code for the. This is recommended, as the P&L and Balance sheet report is readily available.
You can do a consolidation later for merging both the companies results. either through ECCS within SAP or SEM-BCS.

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