Excel
Deferred SBC Expense
In this step we add a section to our accounting adjustments called "Deferred Stock-Based Compensation Expense" that calculates the annual after-tax compensation...
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Deferred Revenue
In this step, we write off the target's deferred revenue, recorded on TargetCo's pre-transaction balance sheet as a liability, over a period of 1 year...
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Write-Up Adjustments
In this step we make adjustments to the combined company's balance sheet based on purchase accounting adjustments previously modeled in the "GAAP" tab....
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Incremental D&A
When we allocate the purchase price to the acquired net assets, we usually write-up the value of the tangible and intangible assets acquired. This results...
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Accretion/Dilution: All-Cash Deal
Let's now determine whether the transaction is accretive or dilutive for various transaction prices per TargetCo share assuming an all-cash transactio...
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DCF: Unlevered Free Cash Flow
We begin the DCF analaysis by computing unlevered free cash flow. See the discussion of unlevered free cash flow in the valuation section for more detail...
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