RE: Merger Modeling Basics: Questions on Merger model
Good follow-up questions! You can issue stock direct to the target shareholders which doesn't necessarily preclude you from issuing more stock to the market in a secondary market. Perfect example is today's (9/9/2008) news that Commerzbank is issuing stock to fund its acquistion of Dresdner and w... Good follow-up questions!

You can issue stock direct to the target shareholders which doesn't necessarily preclude you from issuing more stock to the market in a secondary market. Perfect example is today's (9/9/2008) news that Commerzbank is issuing stock to fund its acquistion of Dresdner and was 5x oversubscribed.

So in short, it is the physical currency paid that the acquiror uses to pay. Cash consideration paid to target shareholders usually comes in the form of debt raised in the market (and of course any excess cash, if any, on the balance sheet). Read More

Re: Identifiable Intangible Assets
No worries, and that's what we're here for. Keep in mind that you want to focus on what's material. It's more important to get your projection model and valuation correct than this very fine specific nuance on purchase price allocation. That doesn't mean we don't want to be correct, but sometimes i... No worries, and that's what we're here for.

Keep in mind that you want to focus on what's material.
It's more important to get your projection model and valuation correct than this very fine specific nuance on purchase price allocation. That doesn't mean we don't want to be correct, but sometimes it's not worth the brain damage. Now of course, for deals involving pharmaceuticals with a lot of intangibles, it IS material, etc. Read More

Re: CFA certification
Stalla

Re: Advanced bank financial modeling question
This inconsistency is unavoidable because we do not have full information so we can only proxy it as best as we can. In our full blown Bank model, we do a more detailed build-up of our Gross Loans balance which we make the assumption that those are "origination volume" pre-charge-offs. And... This inconsistency is unavoidable because we do not have full information so we can only proxy it as best as we can.
In our full blown Bank model, we do a more detailed build-up of our Gross Loans balance which we make the assumption that those are "origination volume" pre-charge-offs. And in the future projected years, we do a cumulative charge off amount to get each project year's updated figures. Read More

Re: Excel related question
When a worksheet is inserted, since it is blank, there cannot possibly be blue and black formatting (again since everything is blank). Our macros, in our WST Macros, under Auditing submenu (download and install our macros at http://... When a worksheet is inserted, since it is blank, there cannot possibly be blue and black formatting (again since everything is blank).
Our macros, in our WST Macros, under Auditing submenu (download and install our macros at http://www.wallst-training.com FREE RESOURCES), we have a macro that automatically formats constants as blue and formulas as black:

Ctrl+H select Hardwired constants
Ctrl+B change selection to blue font
Ctrl+I select Formula cells
Ctrl+K change selection to black font
Notes:
1) When hitting the first macro, do not put your active cell as A1
2) Make sure there aren't any other macros that conflict with these shortcuts; if there are, go thru our menus instead of keystrokes
3) You would have to do this for each worksheet; we recommend doing this as you build each worksheet

Other macros can be written that automatically change your cells to blue or black as you create your spreadsheet, but we discourage the use of this for two important reasons:
1) slows down Excel considerably and causes Excel to crash as it needs to constantly evaluate in the background
2) reduces the user's flexibility if you wanted to change a font color as an exception (such as red, green or white) Read More