Description

M&A Modeling Complexities explores tax deduction of options, working capital adjustments, currency issues, and asset step ups and deferred tax liabilities. As well as the present value of synergies to premium paid, and return on invested capital.

Learning Objectives

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1. Build a merger model that explores various complex features and scenarios.
2. Identify the tax deduction of options and working capital adjustments.
3. Recall the function of currency issues and asset step-ups.
4. Determine how deferred tax liabilities and the present value of synergies to premium paid work.
5. Calculate the return on invested capital (ROIC).
6. Recall the function of proforma adjustments and flexible funding.
7. Calculate goodwill and make fair value adjustments.
8. Model fees and consolidate financial statements.
9. Analyze earnings accretion/dilution, price-to-earnings (P/E) ratio, ROIC, and synergies vs. control premium.