Today we're looking at M&A consolidation. My name's Gerard Kelly.

We need some materials. If you scroll down to the bottom of that page, there are the files we'll be using.

In fact, we're just going to be using this consolidation workout empty file.

The answer file is immediately underneath.

So workout full is the answer file.

You can look at that in your own time, of course.

All right, so download that empty file, please.

Okay, guys, I'm going to do this with a mix of slides and Excels, but mostly it's going to be Excel. So let's get ourselves into M&A consolidation.

With M&A consolidation, we're going to have an acquirer company and a target company, and the two of them need to merge together.

We're going to have to merge their balance sheets and their income statements.

And by merge, I mean consolidate the two together.

So how are we going to do this? Well, it happens when a holding company acquires control over subsidiaries, and control means the majority of votes.

By majority, we mean 50% plus one extra share. That means you end up with subsidiary one and subsidiary two, and the rule is you must, or the hold co, must produce consolidated financials for all the subsidiaries. Basically, we all need to merge together.

So how do we do that on a balance sheet? Well, here, in these circles at the top, we've got a formula.

That formula for me is going to say that company A, your investee, you add their balance sheet to company B, investee.

Merge their balance sheets together, but then you'll have some transaction effects.

Now I'm going to call that C, and I'll keep coming back, I'll keep calling it C throughout this session.

And that gets you to D, the consolidated balance sheet. So all of this is looking at the balance sheets, the balance sheets, and the consolidated balance sheets. So where do we earn our money here? What are the hard bits? The hard bits are these C transaction effects, and we've got this little list of them underneath. The first transaction effect we have is the shareholders of the investee, target company, have been bought out. So we need to zero out the investee's shareholders' equity.

What on earth does that mean? Well, it means if I buy your company, I give you lots of cash. "Hey, here's lots of cash.

Thanks a lot." You give me your shares, and I rip them up.

Okay? Those shares cease to exist.

So we're going to zero out the investee's shareholders' equity.

After that, the transaction must be financed, and we'll summarize that in a sources and uses of funds table. So that's our second thing we want to do.

And then our third thing, we need to calculate the premium paid above book amount.

What does that mean? Basically, if the balance sheet says you should have paid 100 and you paid 110, then that's goodwill, the premium paid.

And it then says that you can have step-ups, step-downs, and goodwill.

That's what we're going to do as well.

So this is enough talking. Me talking is all well, I get to introduce it to you. But what I'd much rather do is actually do a question with you, see it come to life.

So if you've just come in, we've got loads of people in here today.

This is fantastic. If you've just come in, the link to materials is in the chat right now, to the team chat.

That opens up our website. And the file we're going to do is this one. It's on screen now.

The file we're going to use is this one blinking at you on screen.

Okay, let's go open it up.

That gets us to this page here, the Welcome tab.

Can we please go to the Workout tab? And we're then going to go down to Workout 11.

There we go.

Let's have a little read-through, and it starts off by saying that Parma PLC bought... Let me change my color to red.

There we go.

Parma PLC bought 100% of the equity capital of Bergamo for 1,950.

And if I then skip down to the bottom line, it says, "Produce a consolidated balance sheet." And we'll look at all the other things in there as well in a second.

If we now scroll down, we're introduced to the balance sheet of Parma, that's our acquirer, and Bergamo, that's our target company.

I'm going to call them company A and company B.

Now, I'm going to make them orange. You don't need to make them orange.

I'd then like to have three columns for C items. Those C items were transaction effects.

Ding. Effects that happen to the balance sheet because of the transaction, because of the takeover.

Okay.

And that will get us to D, our consolidated balance sheets.

Now, the first place we always start is by doing our D column.

I strongly suggest you guys take your hands off your keyboards, watch me do it, and as soon as you've watched me finish it, you'll go, "Got it." So just watch me do it. I want to take A plus B plus the C items. So I've summed those up. But keep watching. I'll give you some time. Keep watching.

I want to sum like that to the left.

Whenever there are these blue-fonted numbers.

Keep watching.

But whenever we get to these black-colored fonts, I want to sum upwards.

And to save you a little bit of work, I'm just going to copy this cell here. Copy.

It's now copied, and I paste.

So just watch. Let me finish. If it's blue, I'm going to copy that. Copy. It's blue, it's summing to the left.

But then when I get to black, take this one, copy and paste.

And it's black here, copy and paste.

Guys, can you please do this D column as quickly as you can? And my formulas are on screen in case you had any difficulty there.

Blimey, we've got hundreds of you in today. Guys, welcome.

This is great to see.

Okay.

So everything's summing to the left when there's blue font, but then when there's a black font, I just copied this formula, pasted it over here. And let's just double-check we've got a balanced balance sheet.

Now, it's the C items. This is where we make our money.

And the C items, just to remind you, they are the transaction effects.

Those effects only happen because of the transaction, because of this consolidation, because of an acquirer and a target have come together.

So what are they? They're going to be the three things from the slide. Let's go back again.

The first one here was zeroing out investors' equity, and then sources and uses, so that's financing, and then goodwill at the bottom.

So let's do our zero out first. A zero out column.

I have bought the target's equity. There's some money. Thank you very much.

I'll take your shares, thanks.

Rip up the shares.

And that means this common stock here is gone.

So I'm going to press equals minus 265.

So look on the right-hand side what's happened to the column D, common stock.

It's taken A's equity and then it adds B, subtracts B, we just end up with A's equity again, 156.

Good. We've zeroed out company B.

We also need to do the same with the retained earnings.

Let's get rid of that, so equals minus 363.5.

Get rid of that. Gone.

What was step one? We had to zero out. We have zeroed out.

So what was step two? Step two, come back again, it was the financing with the sources and uses of funds table.

So I'm going to call this the financing column.

Okay. We'll come back. We will do the financing in a second, I promise.

And then step three, at the bottom, was goodwill.

That's going to be our final column here.

Right. Let's go have a bit more of a read of the question, and we can start filling in some more of this detail.

So scroll up.

Moving into this second sentence here, it says, "Palmer PLC also intends to pay down the debt of Bergamo as part of the deal." Interesting.

"The transaction was funded by 10 million of balance sheets cash, a debt issuance of 250, and the remainder with new equity." Okay. Let's go with that for starters.

I want to do a little table of the sources and uses.

Otherwise, it's going to get a little bit confusing what we're doing.

So I'll start with my uses of funds, then I'll leave a couple of lines, one, two, three, four blank lines, and then we'll have our sources of funds.

So let's assume the acquirer goes and gets lots of funds, sources of funds.

Great. What do they use those funds for? Well, the first one is to buy the target, and we call that the equity purchase price.

If we go back up to the question, the equity purchase price was 1,950. We can just type that in, 1,950. Great.

But what else do we use the funds for? Well, we had another thing, and it said, "Palmer PLC intends to pay down the debt." So that's our second one, pay down the debt of Bergamo, the target.

So target company debt pay down.

I need to go and find some debt.

So I scroll down. Scroll down.

Ah, we've got Bergamo's balance sheet, and I need to look for debt items. And I see short-term debt, 65.5. Brilliant.

We'll pay off that.

And, plus sign, I see another item here, long-term debt of the target.

Both of those need to be paid off.

So I grab the two of them.

My total uses of funds, if I sum them up, ay caramba, we're going to need 3,107.5.

Aye, aye, aye. Okay, so now we need to go and find that cash. That's what we're going to use.

I need to go and find it.

And we're told in the question that there were some debt sources.

The first one, cash.

Second one was, hang on, debt.

And the third one was equity.

So cash, nice one to start with, was just 10 up in the question.

Debt issuance, 250.

But then we had an equity issuance.

Now, that's where we issue shares to the target shareholders.

We say to them, "Hey, come join us. Come join us.

Be part of our group. Here are some shares in our combined entity.

Wouldn't you like to join us and watch as the empire grows?" We're told it was the remainder of funding was with new equity.

I need 3,100 in total.

I've only got 260.

So the equity issuance is the plug.

3,107 minus 10 minus 250, 2,847.5.

Great. Total it up. Make sure they're the same number.

They are the same number. I'm happy with my sources and uses of funds.

Okay.

These items now need to go into the consolidated balance sheet below.

So let's scroll down. Most of them will go into the financing column.

The first one is going to be cash.

I press equals, negative sign, and we spent 10 of cash.

Cash of 10 being spent. Good.

The next one was the debt, 250.

It's a reasonable assumption that that would be long-term debt.

So I press equals, debt, 250.

And lastly, it was the equity issuance.

So I go down to the common stock, press equals, equity issuance, 2,847.5.

Now, hang on.

We've put all of our new financing in, but didn't we say something else? In our sources and uses, we said the target company's debt needed to be paid down, 1,157. At the moment, in green, I've still got that old debt.

So we need to get rid of that.

So I'm going to put that in the zero out column.

We're going to get rid of the old short-term debt, equals minus 65.5.

And I'll do exactly the same for the long-term debt.

I won't be able to reveal my formula, though. So keep an eye out, guys.

Keep an eye. Equals minus 1,092. Get rid of that old debt.

Good.

Now, it kind of feels like this is done.

We've gotten rid of everything that was being ripped up and thrown away.

We've replaced it with new financing, but the balance sheet doesn't balance.

So why is this? Because we've bought something relatively small, but we paid a lot for it, so it doesn't seem to balance at the moment.

You paid a lot, bought something quite small.

The difference is goodwill. So that was the final thing on our slide, this item at the bottom here.

Calculate the premium paid above book amount.

So I'll explain what book amount means, but let's go do a little calculation above here. Let's do a goodwill calculation.

A goodwill calculation. It starts off with the equity purchase price, and I'm going to move two columns to the right to do this.

So I'll press equals.

I need my equity purchase price, which was 1,950.

So that's how much we're spending.

But now we need to have a look at what we were buying, and we're buying the target's equity.

We're literally saying to them, "Here's some money.

Give me your shares, and I rip them up." So what I'm buying, if I look at Bergamo's column here, is I'm buying their common stock and retained earnings or their total equity of 628.

628, that's really small.

We just spent 1,950. Whoa.

So that's the beginnings of our goodwill.

I'm going to say equity purchase price less target book value, which means balance sheet value.

Book value of equity, sometimes called net assets.

Net assets, it's just the same thing.

So less the target book value of equity.

I'm just going to move one column to the right now. Press equals.

And I'm going to go and find how much that was.

It was this 628.7.

Great.

Okay.

So initially, this looks like a lot of goodwill, 1,950, and the difference between that and 628, whoa, we're looking at more than 1,300 here. That's a lot of goodwill.

However, it may be the case that we can do something with the target's assets.

If I go back to the slide, it does say calculate the premium paid. Well, we've kind of done that.

But then it says allocate to component parts, such as step-ups, step-downs, and goodwill.

We're going to do some step-ups.

Let's go back. Let's read the question about step-ups.

If I scroll up to row 321, it says the PPE of Bergamo was valued at 1,650.

Ooh, that's interesting.

If I go down to the balance sheet, their PPE here is only 1,173.

We can revalue their assets up, and you can only do that on the day you acquire a company.

Okay, normally, you buy an asset, and it goes down.

Sometimes you can revalue it back up to its original price.

It can't go higher, except on the day you buy a company.

On the day you buy a company, you can revalue that asset up as high as you want, assuming that there's an independent expert who agrees.

So what we're going to do is we're going to add on a step-up.

Add a step-up of PPE that's going to increase the target's book value of equity.

Now, this step-up, if I go back up to the question, 1,650 is what the PPE is now valued at.

It was valued at 1,100.

Okay, so we need to do 1,650 minus the PPE down here, 1,173, and we'll see the step-up.

Ah. We've just found 476 extra value in the assets we bought. Nice.

But there's another step-up.

Let's go back and read. So we did the PPE, and it was agreed that intangibles were worth 450 as well.

So the intangibles of 450 need a step-up.

So we're going to add a step-up of intangibles.

My intangibles were worth 450, so 50 minus, what were they already worth in the balance sheet? They were already worth 170.

Ah, so it's just a step-up we need, just the extra bits, 279.7. Brilliant. So if I add all of that up, just going to use a sum function, sum that up.

Let me get rid of some of this color. It's getting very colorful in here.

If I now compare, excuse me, the green cell, what we spent, versus the green cell, what we've received, my goodwill is now a little bit smaller.

Okay, so goodwill is the difference between the green cells.

So equals 1,950 minus 1,384.

There's my goodwill. Fantastic.

The goodwill is a new asset. We need to recognize it.

We have paid this premium for a company because we think it has some hidden value. Maybe it's got really good management, really good employees, it's got a really good pipeline of products, good suppliers or customers, whatever. There's value here that we're willing to pay for.

That is now going to go into our goodwill column, row 351.

Press equals.

Let's go find that goodwill, 565.

Amazing.

However, I do see something a little bit annoying, and it's the intangibles and the PP&E. If I look at my PP&E, at the moment, I'm only adding the old PP&E of A and the old PP&E of B.

What about step-up? The step-up has not been included in PP&E here. So, in the goodwill column, I'm going to include the step-up of PP&E of 476.

That asset needs to be recognized, 476.

And I need to do the same for intangibles.

I press equals, go to the 279, step up of intangibles. That needs to go on the balance sheet.

Fantastic. And I'm all done in my goodwill column now. And if I scroll down a little bit, the two yellow cells, I can see I've got a balanced balance sheet. Yes. Mwah.

Winning at accounting.

Brilliant. Now, guys, if there are any questions, I'm here for you. That's what I'm here for.

We've done a question on the balance sheet consolidation.

We're going to do a question on income segment consolidation.

I can see a hand up. Abdul Raman, do you want to unmute? Do you want to stick it in the chats? Entirely up to you.

Don't have controls to unmute. Just type it in the chat then.

Oh, I'm not sure I can, actually. Because we've got people from lots of different companies, the problem is, I can't give control away. I'm really sorry. Really sorry.

I'll tell you what, do you want to put something in the chat? And while you're doing that, everyone else, we're going to have a look at workout 12, but once I've explained what we're going to be doing, consolidating the income statement. Okay? Now, consolidating the income statement, very similar process. We take A and B, C equals D.

Let's just have a quick introduction of that while a question's coming through in the chat.

So here's my income statement consolidation.

Income statement consolidation.

I've got the same formula here as before on the balance sheet.

We had company A, you add company B, plus or minus any Cs, equals D.

We take company A's IS, income statement, company B's IS, income statement, and it's the transaction effects where we earn our money. And I will answer that question in the chat in just a minute, I promise.

So the transaction effects, what are they? Transaction effects.

Firstly, you only consolidate from the deal date onwards.

If you buy the company halfway through the year, it's only the second half profits that you get to keep. Okay? So that's called a stub. So you might need to do a stub.

But what else happens on the income statement? You might have extra interest expense on deal debt, lost interest expense on retired debt.

You pay off the target's debt.

Lost interest income on balance sheet cash.

You might have some synergies. You might have some tax on all of this.

We'll ignore the extra depreciation for now.

So we need to do all of these things in an income statement.

But I see a question's come through in the chat, so let me just have a quick read.

What if A did not acquire company B fully but only acquired a majority stake? Would we still merge the complete balance sheet of B in A? That is an amazing question, Abdul Raman.

The answer is, you absolutely would.

Let's assume you only buy 90%.

You consolidate all 100, and then you go, "Oh, hang on.

We don't own all 100." So you have a new extra source of financing, which is NCI, non-controlling interest.

And basically what you're saying is you take all 100% of the assets and liabilities and everything, and then you go, "Oops, sorry. Sorry." And in the equity, you create this non-controlling interest to represent that 10% that's not yours.

We're going to very briefly look at that at the end, Abdul Raman.

So, great question. If you want to put your hand down now.

I hope that has answered your question.

So let's go back to the income statements.

On the income statements, we're in workout 12 now.

Excuse me.

Let's just have a quick read-through.

And it says, "Moderna is planning to offer to buy 100% of Genoa and wants to understand what the pro forma income statement might look like." Okay, so the first thing we're going to do is we're going to set up our answer.

It says, "Using the forecast information, build the pro forma income statement." So we can do that.

I'm going to label this up again, A, B, have three C items, and then a D, a consolidated income statement.

Okay.

Now again, I would encourage you to take your hands off the keyboards, just watch me do column D, watch me do all of it, and then start typing.

So, when we have these blue fonts, I sum horizontally to the left.

Keep watching. But when I get down to the black font, that's got a vertical sum or a minus or whatever, I'm going to cheat. I'm going to copy this cell right here over to the right, and I'm going to copy this black font here to the right, and this black font here to the right, and copy this black font here to the right. Where it's blue font, I'm going to paste, paste, paste. Sum to the left.

Cool. Guys, can you do that as quickly as you can? And my formulas are on screen in case that didn't work out.

Okay. So now I need to get on with my C items.

And we're going to have three. Let's have a read.

It says, "Current assumptions involve using 200 million of balance sheet cash." So it's strange. Got some cash being used.

Cash doesn't affect your income statement.

"An issuance of debt of 1,500." Doesn't affect your income statement.

"And an equity issuance of 1,000." Ah, the next line. Let's have a quick read.

"Forecast interest rates are 5.5% for deal debt." That is going to affect us. And 1% for cash, that's going to affect us, and then synergies.

So I want to have three columns for those three items, synergies to start with, then we'll have interest income, then we'll have interest expense.

Okay, so three items to get us working.

Let's start with the synergies.

The synergies, if I just go back, it says here, "SG&A," so selling, general and admin, "synergies are expected to be 20 million." So I'll go to the SG&A line, row 375.

And I definitely need to put a 20 in there, but is it a 20 positive or a 20 negative? Hmm.

Well, my SG&A figures here are positive, so that's a cost of 1,760, a cost of 607.

We're going to see those costs decrease.

So it's a negative 20 that we want here. Good.

But next up is the cash. Cash, excuse me, is the tax. Beg your pardon.

Now, how are we going to do that? Well, I'm going to do a little backup calculation here. I want to ask what's going to happen to profits and what's going to happen to tax, and I'll do it in the synergies column here.

If we've had synergies, which are cost savings, that means profits will increase.

Great. Profits will increase.

And if your profits increase, your tax also needs to increase as well. So tax increase as well.

So why have I gone through this little calculation here? It's to help me get the signage right in this orange cell.

I'm definitely going to take the 20.

I'm going to multiply it by the tax rate.

Given to us in the question, tax rate's 25%.

It comes through as a negative five.

But hang on. We know that tax should increase, so 200 tax expense, 62 tax expense, both positive.

This needs to be a positive as well.

So let me change the sign, and there's my formula. In fact, I'll put my formula underneath.

Oh, what happened? I definitely put a negative sign there. Yep. There we go. Positive. Good.

So now we move on to the interest income.

Now, the interest income comes about because we used 200 million of balance sheet cash.

Ah. And we were earning 1% for cash.

So I go to my interest income line, row 377 Interest income, 200 cash multiplied by 1%.

Now, is that interest income going up or is that interest income going down? It's going down. We've spent the cash.

We don't have that interest income anymore. So that's going to be a negative.

But what then happens with the tax? Let's have a quick think about profits.

Profits.

That interest income is not being earned anymore.

We've spent the cash, interest income's not being earned.

That means my profits decrease, and if your profits decrease, your tax decreases.

Let's write that all in.

Decrease, decrease. Yeah. Profits go down, which means your tax goes down.

So my tax expense here, I'll take that 2, excuse me, multiply by the 25%.

I need this to be a negative number.

If I press Enter, I get a negative number. So I'm very happy with that formula appearing underneath.

Now, the last one in an income statement consolidation is the interest expense.

What's happening here? Well, we're told there was an issuance of debt of 1,500.

There's going to be interest on that of 5.5%.

We need that to come in here, row 378.

So I press equals.

How much was my debt? 1,500.

What was the interest on it? 5.5%.

82.5.

Let's check that that's the correct sign.

Interest expense, 150. Interest expense, 60.

I've now got new debt, which means my interest expense goes up. Yep, that's a positive. Very happy with that. Good.

But what about the tax? With the tax, let's have a quick think again. What happens to my profits? Interest expense goes up.

If expense goes up, means my profits go down, so profits decrease. And if your profits decrease, tax decreases as well.

So tax expense, 82.5, multiply by 25%.

I need it to be a decrease. I need my tax to go down. I need this to be a negative.

So just make sure that's a negative, and reveal your formula.

What now happens is we have consolidated the sales, consolidated COGS, and importantly, consolidated SG&A, including synergies.

We did the same with interest income, same with interest expense.

We included these C items, and then got ourselves down to a brand new net income, and that's our eventual kind of answer.

My consolidated net income is 989. Mm.

Guys, that's the end of that question, and there's one more thing I want to talk about with you. It's the NCI. Okay, what happens with NCI? But are there any questions on this question here? So if you've got a question for me, guys, jump on the chat. Now's the time.

I'm going to give you five seconds of complete silence.

Jump in the chat quick.

Five seconds of complete silence coming now.

Okay, I'll keep an eye on the chat, see if any questions come.

Now, the last concept is, one that Abdul Raman brought up earlier, is what if you don't buy 100%? Okay, so just to give you a brief idea, let me just go grab myself a bit of extra space here.

If we are an acquirer, we are massive, and we're buying a teeny tiny little target here, but we're only going to buy 99%.

Okay.

Then that means that someone else is still owning the last 1%.

They have provided some funding towards this company.

We're going to call that a non-controlling interest, or an NCI.

Sometimes called a minority interest, depending on which country you're in.

We need to recognize that NCI. We just need to work out what value to recognize it at.

So let's go have a look at some slides.

No workouts on this one, but there's a question in the slides.

Here's our goodwill calculation and an NCI calculation when NCI occurs.

Now, there are two methods for how to do this, guys. There are two.

Method one can be used under IFRS. IFRS have the choice to do this. Method two, US GAAP must use it. IFRS have the choice to do this.

We're going to start with method one only to begin with, and then we'll do method two only on its own. All right.

Now, method one says you have to use something called the NCI percentage of identifiable net assets.

We'll see what that means in a second.

So let's read the question. Here it is.

Company A buys 80% of company B for 500.

Company B's identifiable net assets is 400. Now, all that means is company B's equity.

Company B's equity.

So if company B's equity is 400, we've spent 500, we know there's going to be some goodwill, but how do you calculate it? Let's have a look.

Method one.

Method one says you take your purchase price, 500, just like we did in workout 11, and you take away from that, so less the net assets, but we know that just means the target's equity, of 400.

But we didn't buy all of it. We only bought 80%.

Ah, so my goodwill now is the difference between the 500 and the 320, not the 400.

Great. That gets me to deal goodwill, 180.

Tick. We've got that calculated.

What about the NCI? The NCI is the 20% here that we did not buy.

So if we just have a quick look down here to the bottom, NCI value, 400 times 20%.

And this 80 goes on the consolidated balance sheet.

If you're wondering where it goes, it goes in the equity section.

So 80 on the consolidated balance sheet.

So I've worked out my deal goodwill, I've worked out my NCI, all when we bought less than 100%.

Now, that was method one.

US GAAP has to use method two.

IFRS can use method one or method two.

So let's go and have a look at method two. This will be the last thing we do.

Method two says we use something called the fair value of NCI.

It's a bit different than this.

We start off with the same question.

Company A buys 80% of B for 500.

Company B's identifiable net assets, we know that means just company B's equity, is 400, but we've got some extra information here.

The fair value of NCI is 90. It's not 80.

So the fair value of NCI is basically, it's not the book value on the balance sheet. It's something more approaching the market value.

Maybe the subsidiary has a share price and we're just able to take 20% of the share price.

Maybe we're able to independently value this.

Whatever the reason, we know the NCI is actually worth 90.

Okay. So what do we do in method two? We start here.

It's the same as method one to start with.

Purchase price, 500, less the net assets, we know that just means the equity of the target, of 400 times 80, 320.

Goodwill on the acquirer stake, 180.

Same as before.

But in method two, we have this new section on the right.

Okay.

And this asks us to calculate goodwill on the NCI stake.

The NCI, they haven't acquired anything at a premium. So this is a bit of a head-screwer.

It's a bit unusual. We're working out the difference between its market value, fair value, and the book value of NCI. There's a little difference.

So we start with the fair value of NCI.

That was the 90 up here. Got that.

You then say less the net assets. We know that's the equity.

400 times 20, that's 80.

There's goodwill on the NCI stake.

And again, that goes on the consolidated balance sheet.

Well, I beg your pardon. I'm going a little bit too quick here.

The 180 and the 10 both come together to create your deal goodwill on the consolidated balance sheet, and the fair value of NCI, that goes on the consolidated balance sheet as well.

Great.

So guys, we've consolidated the balance sheet.

We consolidated the income statement.

We've also worked out goodwill when there's NCI using methods one and method two. There's quite a lot going on there.

So I've got a question in the chat. Great question. Here we go.

What do you show on the balance sheet in method two? Is it the goodwill that you show on the balance sheet, or is it the goodwill that you show on the balance sheet or the deal goodwill? It's the deal goodwill.

Yeah.

Method two, you have to show the deal goodwill of 190, and you then show the fair value of NCI up here on the balance sheet.

Cool.

So guys, we consolidated the balance sheet and the income statement.

We introduced the concept of NCI, which is goodwill with NCI, under two different methods.

Guys, I hope you have found this useful. Thanks for all the questions.

Loads of you in here today, so it's great to see you.

You guys are looking really keen.

I hope to see you on another Felix Live really soon.

Enjoy the rest of your day. Have a good one, guys. Bye-bye.

How do we access this webinar and historical webinars? Great question.

Guys, you have to just go back to Felix.

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And here it says, "See more dates and recordings." Click on that.

Watch recording, watch recording, watch recording, watch recording.

But there are actually loads more.

If you just type in here, just type in Felix Live.

Absolutely loads. If I just press Enter, loads of Felix Lives that have been recorded.

M&A considerations, M&A fundamentals, 505 pages.

Cool. Does that help you out? Great. Have a good one, guys. See you later. See you on another Felix Live.

Bye-bye.