Intermediate / Advanced Merger Modeling

Last 10 posts

DTL creation
Hi there, Does anyone there can help me understanding why we have deferred tax liability (DTL) creation in M&A/purchase price allocation? What is the rationale to create DTLs in this circumstance? I appreciate your help on this matter. Cheers.
Go to post added 8 years ago
Cash Flow and Balance Sheets for M&A Models
I just wanted to confirm that when building full-blown M&A models (like the PEP-TAP Intermediate Model in Module 5) that it is not common practice to build out the entire B/S and C/F statements, such as we did for the advanced financial model in Module 3.
Go to post added 8 years ago
Intermed-Adv merger model
Where do you get the 2006A tax rate, and interest rate on cash, and interest rate on debt from? (2007-2010E projections use the 2006A metrics/data) The model/module simply uses stated hardcoded/assumptions/manual inputs.
Go to post added 8 years ago
Stock issued: calculated off Equity Value or EV?
I noticed that the calculation for stock issued in an M&A deal differs in your Simple Merger Model vs the Int-Adv Model. Why in the simple merger model do you calculate stock issued based on EV whereas in the Int-Adv Merger Model with PEP and TAP you calculate it based off the equity value?
Go to post added 8 years ago
Dividend payment for Debt Paydown
In the int-Adv model (and this is the case for the AdvFM Model as well, why do we build the Cash Available Before Debt calculation to include a dividend payout when, in theory, dividends have the last priority to payouts. Shouldn't the debt sweep sweep through first and then we decide if dividends a... Read More
Go to post added 8 years ago
Identifiable Intangible Assets
My video for the M&A package has expired so I'm just going off of what I have in my notes and in the Pepsi/Molson M&A excel model. It seems the differentiating factor between Tax Deductible and Non-Tax Deductible Intangibles is whether the asset has a finite or infinite life. Separately, I w... Read More
Go to post added 8 years ago