In planning the forecast Consolidated new co-financials. We're going to need a few things. We're going to need to know the order of modeling and then any considerations and our Focus. This is going to be on year one except for any side calculations.

So what do we do first? Well firstly we focus on the income statements and the formula we use is we take the acquirers Standalone income statements you then add on the targets Standalone income statements.

But then add on any deal changes IE has anything changed in the income statement because of the deal the examples we give here include synergies additional or reduced d and a maybe due to step UPS debt fees are going to impact the income statements particularly unwinding of them any restructuring cost. Maybe no need to do all of that except for interest and tax. Both of them are circular. They're going to need a side calculation in just a moment.

So that gets us through our income statements. Next up is the balance sheet and we see the same formula again you take the acquirer's Standalone balance sheet.

Then add on the target Standalone balance sheet, but then add on any deal changes. This can include Goodwill any step-ups. Maybe those step UPS have been depreciated a little bit. Your debt fees have been amortized a bit through the income statement. So the balance sheet value will have come down any acquisition debt. You may have repaid some of that. So again, that's come down and any new dividend policy may have affected any dividends going through the balance sheet.

Lastly that deferred tax liability your gradually unwinding that so that figure will have come down.

So we do all of that except for cash and short-term debt for them. We're going to need the cash flow statement.

That's number three in our cash flow. You build that from the new Co income statement and balance sheets and then you sweep existing short-term net debts and you hook it up into the balance sheet. We're going to be using the max function and the Min function.

Some side calcs are going to be needed then the interest and their tax expense are going to be our Focus. They're going to be circular. That's why we've left them until the end within hook them up into the income statements with a circular switch.

Lastly then you need to just copy across anything. We're going to be doing it just for one year to start with. So once that year one balances copy across to the right check any ratios to make sure your numbers haven't gone a little bit crazy maybe an error has snuck in and then enable iterations turn on the circular switch and your forecast Consolidated new Co financials will be done.