Accounting for the acquirer
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What a deal does to the buyer's balance sheet, income statement, and tax bill, from the day it closes to the impairment test three years later.
BBasic3 lessons
- 1How a deal lands on the buyer's statementsOn closing day the buyer's balance sheet absorbs the target's assets and liabilities, the target's equity disappears, and whatever the buyer paid shows up as cash out, new debt, or new shares.9 min
- 2Purchase price allocation and goodwillProThe buyer marks the target's assets and liabilities to fair value, recognizes intangibles the target never booked, and calls whatever is left goodwill.10 min
- 3From headline price to cash at closingProDeals are agreed on an enterprise value, but the seller is paid an equity value that moves with debt, cash, and working capital on the closing date.8 min
- QBasic quizPro9 questions, 80% passes