Excel
PPR – Premiums Analysis
The next step in the purchase price ratio analysis is to calculate the premium (or discount) each transaction price represents relative to various historical...
Read more
PPR – Multiples Analysis
The last step in the purchase price ratio analysis is to calculate the valuation multiples at the various transaction prices. Doing so allows us to refine...
Read more
Black-Scholes Option Value
In our model we will assume that TargetCo's stock options held by employees of TargetCo are replaced upon consummation of the transaction with new BuyerCo...
Read more
Replacement Options
Now that we have calculated the fair values of TargetCo's vested and unvested employee stock options ("ESOs"), we need only to multiply by the number of...
Read more
FIN 44: Unearned Compensation
A portion of the intrinsic value (if any) of the unvested replacement awards is allocated to unearned compensation under FIN 44. The amount allocated to...
Read more
FIN 44: Compensation Expense
The portion of the intrinsic value (if any) of the unvested replacement awards allocated to unearned compensation is recorded as an asset on the balance...
Read more
Incremental Depreciation & Amortization
In this step we add to our "Amortization of Identifiable Intangibles" section on our "GAAP" tab and add a section called "Depreciation of Fixed Asset Write-Up"....
Read more