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Mergers & Acquisitions
- Mergers & Acquisitions
- Leveraged Buyouts

Ask your merger related questions here, both concepts and modeling-specific.

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Carve-out Accounting

I'm curious as to how a Parent Company should account for a carve-out >50% of Sub, retains legal control). According to Macabacus, if the parent is selling secondary shares, the accounting should be as follows (i picked arbitrary numbers): dr. Cash 10 cr, Minority Interest 8 cr. Gain on C... Read More

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by Guest 1.

added 11 years ago

Re: Carve-out Accounting

If the Parent Company is selling greater than 50% control of the SUB, this is considered a change of control and thus the Parent no longer consolidates and instead, is now minority interest shareholder (assuming equity accounting in which Parent retains 20%-50% stake). If that is the case, there is ... Read More

by WST Expert 1.

added 11 years ago

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