M&A Accounting & Purchase Price Allocation

Overview

An analyst must understand mergers and acquisition accounting, as it's crucial when properly building an M&A model and evaluating whether the deal makes financial sense. In this course, we cover the M&A accounting process, including fair value adjustments, calculating goodwill, deferred taxes and various related fees and expenses. We also cover how a deal can be structured as either a stock purchase or an asset purchase and the resulting accounting implications. We will practice adding transaction adjustments to calculate a pro forma balance sheet, but we will also look at the impact of a transaction on the income statement and cash flow statement.