What accounting changes does an analyst account for in working out accretion/dilution analysis?

Accounting changes adjustments include:

• Non-cash related items which include incremental D&A, asset write ups, write down: Targets Fixed and intangible assets are written up to fair value

• This typically leads to higher amortisation and depreciation expense in the future for the acquiring company.

• Reduces Proforma (combined) NI and Proforma EPS.

• Creation of goodwill can be the most significant adjustment. May not have an immediate impact on the Income Statement in the short-term.

We have an 88% placement rate for our 4 to 8 weeks training programs conducted in 2017/18 with students going on to secure jobs at marquee investment banks such as Goldman Sachs, Credit Suisse, Morgan Stanley, Citi Bank and Deutsche Bank among others. Please send your CV to info@cityinvestmenttraining.com to check your eligibility for the course.

54 views0 comments