Once a company has merged or been acquired there are a number of key processes that can help ensure the deal is successful. On this course, you will explore some of these processes and learn how to apply accounting and federal income tax principles to project earnings and cash flows, specifically of the post-combination entity.
What topics will you cover?
Week 1 - Consolidation
Equity methods of consideration and the cost method, its sub-categories, and consolidation
Week 2 - Purchase Accounting and Special Topics
Explore purchase accounting in detail and other areas like Internal Revenue Code Section 338, tax deductible goodwill and intangibles
What will you achieve?
By the end of the course, you'll be able to...
- Investigate how the Aggregate Deemed Sales Price and Adjusted Grossed-Up Basis are determined
- Discuss the conditions that make a 338(h)(10) transaction economically feasible
- Identify the mechanism of an IRC 338(h)(10) transaction
- Interpret the conditions that make a 338(g) transaction economically feasible
- Identify the mechanism of an IRC 338(g) transaction
- Calculate the accretion and dilution of future earnings resulting from business combinations
- Explain how to estimate the impact of target's unrecognized intangible assets on goodwill and the combined company's future earnings
- Calculate the acquisition purchase price and transaction goodwill
- Explore how net operating loss limitations may impact the combined company's future cash flows
- Identify a targets' net identifiable assets by adjusting for existing goodwill, long-term asset write-ups and write-downs, LIFO inventories, deferred tax items, and fees
- Describe the fundamental concepts for accounting for business combinations using the purchase model
- Summarise the impact of phantom goodwill or phantom depreciation
- Investigate the tax considerations for equity method investments
- Describe the equity method of consolidation
Who is the course for?
This course is ideal for financial analysts and associates. It is also suitable for directors and managers who have transitioned or hope to transition, to mergers and acquisitions from other areas, such as equities or fixed income.
To get the most from this course you will need solid MS Excel skills and an understanding of financial accounting and of mergers and acquisitions concepts and structures.
This school offers programs in:
Last updated February 17, 2018