Please chose a recent business combination (not earlier than 3 years).
Your chosen combination may not have data or information for all the questions below.
You can make reasonable and intelligent assumptions, if the information is not available.
Please provide page number of your document if you are using the information from the business combination.
To receive full credit, you have to provide 7 quality responses out of the 10 questions.
You can work in a group as you have made or individually. If in a group, please email me your group’s name (such as "Dolphin" and the team members’ names in the project paper when you submit). I will email you a confidential survey for the contribution made by the team members. Any member who did not contribute, will get zero credit. Be fair!
The project paper should be submitted by 11:59 pm on the day of final exam.
Requirements:
Provide a synopsis of your choses combination [i.e., briefly describe the industry of the acquirer and acquired companies, reason for combination, synergies expected, impact on the people, process, and technology of either companies].
Define what type of combination it is.
Determine Consideration given including contingent consideration, if any.
Did/would the combination create goodwill or bargain purchase gain (BPG)? Describe how the goodwill or BPG was or would be calculated.
Was there a non-controlling interest, if so, what is the value of non-controlling interest?
If there was goodwill and non-controlling interest, allocate the goodwill to non-controlling interest.
Determine the amount in "Investment in the Subsidiary" account acquired at the acquisition date, and one year after the acquisitions date [assume consolidated net income, dividend paid by the acquired company during the next year, if not available]
Determine the impact on consolidated net income of the depreciable assets acquired after one year of the acquisition date.
Assume there was a downstream transfer of land with a value of $2.5 million at the date of acquisition. What would be the impact of this transaction on the consolidated financial statements (B/S and I/S) during the next two years (Assume the land was sold to a third party at 3.0 million the at the end of the second year of transfer.