Merger Summary

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Pref stock included in debt for target M&A?
Hello, I was wondering why on the merger summary type of the advanced financial model, particularly cell F20 where we are calculating the total existing debt for the target company, why is that we are adding preferred stock? Is this b/c preferred stock is a hybrid of debt and equity? Can someone ... Read More
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added 10 years ago
Super-advanced merger modeling
Hi there, Could you please explain me in more detail what is the rationale behind those percentages on cells F42:F44 used to allocate the purchase price in the Super-advanced merger modeling? (2). To be more specific, why is it a percentage of Equity and not a percentage of the purchase price??? (... Read More
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added 10 years ago
Merger modeling - Purchase price allocation
Hi there, a couple of doubts here: 1. In the purchase price allocation, why do we allocate the excess (Purchase price of equity – Tangible Book value) without the transaction costs? Any specific rule here? 2. In the same purchase price allocation, shouldn’t we have to add a line in that purcha... Read More
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added 10 years ago