Description

Understand what an IPO is, including the advantages and disadvantages, and the difference between a primary and secondary share sale. Learn how to account for a primary share sale, secondary or a combination of both, pre and post-money valuation, the order of modeling, and introduce spin-offs and split-offs.

Learning Objectives

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1. Recall what an IPO is.
2. Differentiate between a primary and secondary share sale.
3. Analyze an IPO.
4. Determine how to account for an IPO.
5. Identify the impact of an IPO on EPS.
6. Account for different forms of business divestment including an IPO, spin-off and split-off.