Purchase Price - Net Tangible Book Value
In the context of an accretion/dilution analysis, got a quick question for you: is it valid to calculate amortization of [purchase price in excess of net tangible book value] as: = [ [ [Equity purchase price in an M&A transaction ] – [book value of equity – goodwill – intangible assets]... In the context of an accretion/dilution analysis, got a quick question for you: is it valid to calculate amortization of [purchase price in excess of net tangible book value] as:
= [ [ [Equity purchase price in an M&A transaction ] – [book value of equity – goodwill – intangible assets] ] * % of the excess that is allocated to intangibles ] / [number of amortization years]
Just want to make sure I’m looking at it the right way. Read More

PV of Synergies in an M&A Deal
Let’s say you’re calculating the PV of synergies per share in an M&A deal. and let’s say Target expects to have $250mm in SG&A savings during years 1-5, as well as into forever (ie terminal value). And let’s say that we are using a 10x terminal multiple approach to calculate terminal... Let’s say you’re calculating the PV of synergies per share in an M&A deal. and let’s say Target expects to have $250mm in SG&A savings during years 1-5, as well as into forever (ie terminal value). And let’s say that we are using a 10x terminal multiple approach to calculate terminal value.

Question: am I correct to calculate terminal value of the SG&A savings as = [$250mm pretax SG&A savings] * (1- tax rate) * (10x terminal multiple)?

Rationale for tax-effecting the SG&A synergies: I want to take the Total Present Value of Synergies (which = Present Value of Year 1 through 5 Synergies + Terminal Value of Synergies), and divide that by Target shares outstanding, to show Synergies Per Share. Then I’m going to add that Synergies per share number to the Target’s Standalone Equity Value per share to show “Maximum Value of Target Per Share.”

Is this correct? Read More

Adv Merger model error
Pls confirm whether this is an error or not in your model: - you have not dollared the formula in cells I54 and I55 meaning you are taking forward zero values in rows 54 and 55 for book/tax depreciation - this makes a minor difference to the tax charge of c7k which is then carried forward through t... Pls confirm whether this is an error or not in your model:

- you have not dollared the formula in cells I54 and I55 meaning you are taking forward zero values in rows 54 and 55 for book/tax depreciation
- this makes a minor difference to the tax charge of c7k which is then carried forward through the model
- i noticed it in the cash flow

thanks
Bart Read More

Copy and Paste Exact Formula
I seem to remember a WST macro or shortcut that would copy and paste formulas absolutely. As in, if I have =A1+B2 and I copy that to another cell it’ll end up being A1+B2 rather than something like C1+D2 without the use of F4 to lock cells. Is there such a thing?

M&A Purchase Price Allocation - intangibles calculation
I found another point which i woul like to discuss with you. on your merger model (from the c0omplex M&A module), the adjustment with regards to the intangibles must be wrong. The reason being that when i used to model any merger, i did not substrct the target's intangibles. If i did so, then th... I found another point which i woul like to discuss with you. on your merger model (from the c0omplex M&A module), the adjustment with regards to the intangibles must be wrong. The reason being that when i used to model any merger, i did not substrct the target's intangibles. If i did so, then the model would be always off by that amount. If you replace in you model the target's intangibles by an amount instead of being zero. (and balance it on the Liabilities side as well in order to balance) you will see that according to you adjustment the model will not balance by that amount.

The rationale is that during a merger there is no point in blowing out the target's intangibles assets.

Let me know what your opinion is on that matter. Read More