M&A Accounting and Purchase Price Allocation ON DEMAND

Overview

An analyst must understand mergers and acquisition accounting, as it’s crucial when properly building an M&A model and evaluating whether the deal makes financial sense. In this course, we cover the M&A accounting process, including fair value adjustments, calculating goodwill, deferred taxes, and various related fees and expenses. We also cover how a deal can be structured as either a stock purchase or an asset purchase and the resulting accounting implications. We will practice adding transaction adjustments to calculate a pro forma balance sheet, but we will also look at the impact of a transaction on the income statement and cash flow statement.

Highlights

Learn the difference between mergers and acquisitions, as well as the reasons to engage in M&A. Understand how an acquisition changes some of the core accounting principles. Incorporate fair value adjustments and the impact on deferred taxes. Calculate goodwill and what it represents. Recognize how the deal structure may change the accounting for certain items. Identify the treatment of debt issuance fees and transaction expenses.

Prerequisites

None.

Designed For

CPAs and executives.

Objectives

Understand the M&A accounting process, including purchase price allocation and the creation of Goodwill. Learn how fair value adjustments, as well as the transaction’s structure, impacts deferred taxes. Create a pro forma balance sheet with appropriate transaction adjustments.

Preparation

None.

Notice

None.