Merger Model, Part 2: Projecting the Buyer and Seller

What You’ll Learn In This Video

In this lesson, you’ll learn how to pull relevant information from equity research to project the income statements for the buyer and seller, once again using United Technologies’ $16 billion acquisition of Goodrich as our case study.

In this lesson, you’re going to learn how to make income statement projections for the buyer (United) and seller (Goodrich).

You’ll also learn what exactly an income statement is, some of the most common items, why we need this statement to complete our merger model, and how to pull the relevant information from equity research.

You can follow along using the “Before” Excel file above and then check your work with the “After” Excel file.

Coming up next, we’ll conclude the model by tying everything together, combining the buyer and seller, and calculating accretion / dilution.


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