兼并收购分析-Workshop-1206.ppt

e,CorporateAccountingMReducedByNetLosses/Dividends)Inter-companyProfitsEliminatedExcessofShareofTargetEquityOverInvestmentTreatedLikeGoodwill,VotingShares50%Control(BoardandDay-to-DayManagement)PartnerLimitedtoProtectiveRights,FinancialStatementsareCombined100%ofIncomeRecognizedandCombinedBalanceSheetReported,butThenAdjustedforOneLineMinorityInterestInter-companyTransactionsandProfitsEliminated,Over50%,20-50%,LessThan20%,*ExcludesaccountingforVariableInterestEntities(VIE)/SpecialPurposeEntities(SPE)fallingunderFIN46R,CurrentRules*,RequiredForConsolidationOwnershipPercentage(GreaterThan50%Voting)Control(BoardandDay-to-DayManagement):AbilitytoMakeSignificantFinancialandOperatingDecisionsinOrdinaryCourseofBusinessVeryLimitedVetoPowerstoMinorityPartner(ProtectiveRightsOnly-NotParticipatingRights):PartnerMayVeto:UnusualDividends,AffiliateTransactions,LiquidationofEnterprise,Charter/Bylaws/CertificateAmendments,Acquisitions/DispositionsofAssetsOutsidethe“OrdinaryCourseofBusiness”PartnerMayNotVeto:BusinessPlans(ShortTerm),OperatingandCapitalBudgets(OrdinaryCourse),Dividends,Selection/Dismissal/CompensationofManagement,Acquisitions/DispositionsofAssetsinthe“OrdinaryCourseofBusiness”-OtherwiseViewedasParticipatingandMajorityShouldNotConsolidate,“OwnershipAndDegreeOfControl”DetermineAbilityToConsolidate;GovernanceTermsCriticaltoAccountingforInvestments,ConsolidationRules,*ExcludesVIEs/SPEscoveredbyFIN46RJointFASB/IASBProjectWillChangeCurrentRules.OtherThanPages21and22,ThisPitchReflectsCurrentRules.,CurrentRules(Contd)*,“OwnershipAndDegreeOfControl”DetermineAbilityToConsolidate;GovernanceTermsCriticaltoAccountingforInvestments,ConsolidationRules,*ExcludesVIEs/SPEsCoveredbyFIN46RJointFASB/IASBProjectWillChangeCurrentRules.OtherThanPages21and22,ThisPitchReflectsCurrentRules.,InterpretiveGuidance(AssumesGEDesiresConsolidation)MinorityPartnerCanHaveVetoOverLong-TermStrategicPlan;GEMustControlCurrentOperatingPlanRightsofPartnertoBlockTechnologyTransferAreUsuallyProtectiveMostMinorityRightsCanBeMadeProtectivebyLimitingThemtoEventsOccurringOutsidetheOrdinaryCourseofBusinessMinorityRighttoApproveSettlementofLitigationIsAlwaysProtectiveGeneralPartnerShouldAlwaysConsolidateLimitedPartnershipUnlessGPCanBeRemovedbyLPsMinorityRightsMayBeConsideredProtectivebyDefinitionIftheMinorityHasaSmallInterest(e.g.365Days,BusinessCombinations:PurchaseMethodProceduresProjectWillBringChanges,TheFASBandIASBArePartneringaJointProjecttoBroadlyReconsiderAspectsofPurchaseAccountingIncluding:MeasurementoftheValueofaBusinessCombinationRecognitionandMeasurementofIdentifiableAssetsandLiabilities(IncludingIPRFacilityClosedat$5.0MM;Terminated100AcquiredCompanyEmployeesat$10.0MMandTrainedRemainingAcquiredEmployeesat$1.0MMAdjustmentRequiredtoRecordInventoryatFairValue,lessCoststoSell=$10.0MM;InventoryTurns3xperYearPPUsefulLife=5yrsFairValueofIn-ProcessR&DProjectsatDealClosure=$5.0MM,DealBackground,Historical,Purchase,Opening,BalSheet,Acctg,BalSheet,Year1,Year2,Assets,Receivables,15,000,Inventory,25,000,Property&Equipment,10,000,Liabilities,AccountsPayable,(10,000),AccruedLiabilities,(5,000),Netassetsacquired,35,000,PurchaseAccounting-Example,(InThousands),Historical,Purchase,Opening,BalSheet,Acctg,BalSheet,Year1,Year2,Assets,Receivables,15,000,Inventory,25,000,Property&Equipment,10,000,Liabilities,AccountsPayable,(10,000),AccruedLiabilities,(5,000),Netassetsacquired,3