Here we want to calculate the interest calculations for our new company here. We're on the calcs tab and at the top here, we've got the interest rates that we need firstly for the new Co cash interest rates. We've got that from the acquire Tab and then the acquisition debt and the convertible bond interest rates as well.

Underneath that we've got room for our interest calculation. And this is where things get a bit interesting. We've got this great big long list of Interest items. So, how can we help organize them in our heads. We understand what to do every time there's an m&a model to be built.

well, our first one here Bale bias German company, they represent our acquirer or company a and then Monsanto which is the target represents Company B.

Then we've got lots of deal adjustments. I think that happened just because of the deal I take my acquisition debt interest expense. That's brand new that only happened because of the deal then the convertible bond interest expense the new coach short term interest expense and then you go interest income all of these things happen just because of the deal or are affected by the deal.

If we add them all up IE company A's interest company B's interests and all of the deal adjustments we get to our Consolidated interest figure. So this is our classic m&a formula again.

So we need to start calculating all of these. We'll start with our acquirer now. It's an interest expense. So I'm going to start with a negative sign. I'm then going to go to the acquire Tab and then scroll down and find their interest rates here. It is in g92 and I then want to multiply that by the average of the debt that they had. We've got that a little bit further up in row 67, and I'm going to take that from f and g Fantastic, there's our first one now. I need to do something almost the same for Monsanto all the target so start with their negative sign.

I go to the calendars tab.

And again, I scroll down to row 92. I'm going to find that interest rates g92 and then multiply that by the average.

Of the debt that they had and we've got that just up in there balance sheets in f67 and g67 but the slightly more interesting thing that's happening here is if we're refinancing the targets debt, then we don't want this interest here at all. So, how can I turn it on and off make it flexible? Well, I'm going to multiply it by one minus the re-finance switch now that refinance which it's on the assumptions tab. It's either a one or a zero if it's one we are refinancing. So if we are refinancing what happens in these brackets, well one minus one will give us a zero in the brackets. So if we are refinancing then we multiply it all of our interest by zero and this will come through as a zero.

We are refinancing. So when I press enter that's why 0 appears.

We now come to the acquisition debt interest expense. I can scroll up and I can find that interest rate in row 55.

And I then multiply that by the average of the debts and we've got that up in row 50. I'm going to take that the average of f and g don't forget that needs to be a negative as well because it's an interest expense.

Now for the convertible Bond again, it needs to start with a negative sign. I need to multiply that by the convertible bonds now luckily that's not going to change in its value. So I don't need to use an average. I can just multiply it by the value that value is in loads of places. We've got it on the new code tab in the balance sheet.

There it is. We've got it on the opening balance sheet the 3804. There it is. And you've even got it in your assumptions. Make sure you look in the Euro column here 3804 I could take from any of these. I'm gonna take it from here just because I'm here and I lock onto that.

The new coach short term interest expense again. I need to start that with a negative sign grab the interest rate from the top of the screen here. So row 54 and then multiply that by the average short-term debt that we've got now that average short-term debt is on the new code tab and it's in row 54 and we can see it was zero in both columns f and g The last one then is the new co-interest income. I'm gonna go and find that interest rate. Just again just slightly off the top of the page here 0.1% and multiply that by the average cash balance.

I can find that in a new code tab.

in row 44 their cash went from 365 and jumped up to above 3,000.

Giving me 1.7. I can now sum all of the items up and I've now got my new code net interest expense. Remember that's my Consolidated new code net interest expense of 2824.6 later on. I'll be able to put that into the income statements. There's one more item I do want to do though, which is the Standalone combines net interest expense. That means I need the interest expense and interest income from both the acquirer and the targets. So I'm just gonna sum them up. I'm gonna go to the acquire tab Go to their income statements and I can see that we've got it in G25 and g26.

And then I need to exactly the same on the target tab.

row 25 and 26 now that's coming through as a zero at the moment because we've left our circular switch off.

Once we turn it on that figure will come through.

Why have we done that? Well, I want to compare my new Co net interest expense with the Standalone combines and interest expense because that's going to have an impact on tax a little bit later on there. We've got it there the impact of financing.

The last thing we need to do then is copy all of these numbers to the right.

But then that new net interest expense needs to go into the new code income statement that's on the new code tab.

In columns d e and f we've got the two companies.

Stand alone interest figures added up.

We've got the acquire and the target figures just simply added together.

But from column G onwards after the deal we need to use that new interest figure from the calcs tab.

Because interest leads to a circular I'm going to use an if statement and I'm going to say if the search switch equals a 1 and that Circ that's a cell that we've named on the model intro tab. It's in row 9.

If that Circ equals a 1 then I want interest from the calc tab.

that figure that I want is the negative 2824.6 However, if that value is false if the circuit is not a one then I just want a hard coded zero to appear.

That's what appeared here because the sex which is turned off.

If I was go to the model intro tab, and I was to turn that search switch on I'd get a circular reference warning and I would just need to go into my file options and I would need to enable iterative calculations.

thereafter the calc figures just need copying to the right and then the new Co interest just needs copy into the right as well. And that's all done.