M&A accounting · 3 questions

M&A accounting 1

Put two balance sheets together after a deal: goodwill, minority interests, fair-value write-ups.

Start from question 1 → Go through them in order, or pick one below.
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  1. 1 A buys 100% of BA buys 100% of B. Fair values equal book values. AnalystAssociate Build the statements
  2. 2 A buys 80% of BA buys 80% of B for £96 in cash. Fair values equal book values, and goodwill is measured on A’s share only. Associate Build the statements Plus
  3. 3 A buys B, with a write-upA buys 100% of B for £120 in cash. B’s PP&E is on its books at £80 but is worth £100. Ignore deferred taxes. Associate Build the statements Plus