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.

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?

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... 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 was under the impression that for book accounting, the acquirer does not amortize the infinite life intangibles, but instead test them for impairment (this includes goodwill, and also perpetual rights and licenses). However, the model contradicts my understanding and I would like to confirm which way is correct. Which FASB rule supports this? Secondly, I was taught that for tax accounting, under a stock deal, the acquirer does not amortize any type of intangible unless there is a Section 338 election. However, in the model, you amortize intangibles with finite lives. Which is correct? Which IRS code supports this? Thanks Read More