How is the deal value estimated

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Questions -

Q1. What is the difference between the deal value and "consideration transferred"?

Q2. How is the deal value estimated if the target shareholders receive 100% payment in cash?

Q3. How is the deal value estimated if the target shareholders receive 100% payment in the stock of the acquiring company?

Q4. Suppose Firm A buys 100% of Firm B. What is the deal value if

Firm B has 1 million shares outstanding

Each share of Firm B is worth 0.75 shares of Firm A

Firm A's shares were trading at $16 in the two weeks preceding the effective date of the acquisition?

Q5. Are the costs of investment bank advisories to the acquirer reflected in the cost of acquisition? Why or why not?

Q6. Are the costs of investment bank advisories to the target reflected in the cost of acquisition? Why or why not?

Q7. Cite some examples of restructuring costs related to an acquisition.

Q8. How are the costs of the acquisition allocated the fair market value of the target's assets?

Q9. In cases when the target's liabilities are transferred to the acquirer in the transaction, how are the costs of the acquisition allocated to the fair market value of the target's assets and liabilities?

Q10. Which intangible assets qualify to be recorded at fair market value on the acquirer's balance sheet?

Reference no: EM133163906

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