Macabacus is a "how-to" guide to mergers and acquisitions accounting and modeling. Finance and law professionals and students with exposure to basic accounting will find this resource most useful. New topics are constantly being added, so check back regularly.

Finance Topics

Learn everything about M&A from structuring the transaction to valuation of a business.

Deal Mechanics

Sale Processes

Purchase and Sale Agreements

Private vs. Public Deals

M&A Accounting

Asset and Stock Deals

Subsidiary Accounting

Important Accounting Changes

Purchase Price Allocation I

Purchase Price Allocation II

The Equity Method

Noncontrolling (Minority) Interest

Treatment of Options (FIN 44)

Taxes

Tax Considerations

Tax Attributes of a Target

Section 338 Elections

Tax-Free Acquisitions

Dividends Received Deduction

Corporate Restructuring

Spin-Offs and Split-Offs

Equity Carve-Outs

Morris Trust Transactions

Valuation

Enterprise Value

Valuation Multiples

Valuation Methods

Comparable Companies Analysis

Precedent Transactions Analysis

Discounted Cash Flow (DCF) Analysis

Adjusted Present Value (APV) Analysis

Leveraged Buyout (LBO) Analysis

Premiums Paid Analysis

Sum-of-the-Parts Analysis

Tax-Efficient Sale Strategies

Overview

Leveraged Partnership

Like-Kind Exchange

Mixing Bowl Partnership

Monetizing Spin-Off

Sponsored Spin-Off

Morris Trust

Double Reverse Morris Trust

Supercharged IPO

JV IPO

Stock-for-Stock Monetization

Cash-Rich Split-Off

Prepaid Lease

Corporate Defense

Poison Pill

Venture Capital

APV Analysis

Probability-Adjusted APV

Rounds of Financing

Returns Analysis (IRR & CoC)

Debt Instruments

Original Issue Discount (OID)

Payment in Kind (PIK)

M&A Modeling

Put M&A theory and law to practice with our comprehensive Excel modeling tutorial.

Introduction

Inputs & Assumptions

Company Information

Enterprise Value

Deal Assumptions

Acquirer's Income Statement

Historical P&L

Cash-to-GAAP Reconciliation

Wall Street Projections

Making Our Own Estimates

Target's Income Statement

LTM Balance Sheets

Purchase Price Ratio Analysis

Enterprise Value

Premiums Analysis

Multiples Analysis

Target's Employee Stock Options

Black-Scholes Option Value

Replacement Options

FIN 44: Intrinsic Value

FIN 44: Unearned Compensation

FIN 44: Compensation Expense

Sources & Uses of Funds

Purchase (Acquisition) Accounting

Purchase Price Calculation

Purchase Price Allocation

Incremental D&A Expenses

Deferred Stock-Based Compensation

Deferred Revenue Write-Down

Pro Forma Balance Sheet

Write-Up Adjustments

Financing Adjustments

Pro Forma Income Statement

Modeling Synergies

Incremental Depreciation & Amortization

Accretion/Dilution

Accretion/Dilution Analysis

All-Stock Transaction

Cash-Stock Mix

All-Cash Transaction

Contribution Analysis

DCF Valuation

Unlevered Free Cash Flow

Terminal Multiple Method

Perpetuity Growth Method