Basic M&A Model Build

This problem practices the core logic behind an acquisition model, starting with how to map the deal economics and then carry those assumptions through the financial statements. Candidates need to understand uses and sources of funds, purchase accounting adjustments, balance sheet consolidation, goodwill creation, and the effect of financing choices on earnings per share. Interviewers ask this because it tests whether you can connect the transaction structure to the post deal financial impact and explain how a deal changes value for the acquirer.