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      "text": "342. Why do Goodwill get created in M&A transactions? \"Goodwill gets created in M&A because the acquirers often pay a price greater than the fair market value of the target's identifiable net assets. We know there must be something else that the company owns to warrant this extra price. We just can't pinpoint exactly what that is. Therefore, we record Goodwill as a catch-all number to represent the value of these unidentifiable assets.\"",
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      "text": "340. How do you calculate accretion or dilution in the M&A model? \"We can calculate the accretion dilution in the M&A model by comparing acquirer's EPS before and after the transaction. If the acquirer's EPS after the transaction is higher than the EPS before the transaction, the deal is accretive. If the EPS after the transaction is lower than the EPS before the transaction, the deal is dilutive.\" Financial Modeling Course References: Course 17, Lessons 11 (Accretion Dilution) Course 17, Lessons 34 (Modeling Accretion Dilution)",
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      "text": "343. When you value the target in a DCF in the context of an M&A transaction, should you use the acquirer's WACC or the target's WACC? \"It depends on the purpose of the DCF. If the purpose is to determine what target is worth to the sellers, we should use the target's WACC. However, if the purpose is to determine what the acquirer is worth after buying the target, we should consider the size of the acquirer and target. If the acquirer is significantly larger than the target, the we should use the acquirer's WACC. If the acquirer and target are relatively similar in size, we may consider a blended WACC.\"",
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      "text": "339. What are the main drivers of accretion / dilution in the M&A model? \"The main drivers of accretion dilution in the M&A model are i) Purchase Price, ii) Acquisition Currencies, and iii) Synergies.\" Financial Modeling Course References: Course 17, Lessons 35 (Drivers of Accretion Dilution)",
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      "text": "341. Why do Deferred Tax Assets and Deferred Tax Liabilities get created in M&A transactions? \"DTAs and DTLs often get created in M&A transactions due to write-downs and write-ups that may be tax-deductible on a financial accounting basis but not deductible on a tax accounting basis.\"",
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      "text": "The main drivers of accretion dilution in the M&A model are i) Purchase Price, ii) Acquisition Currencies, and iii) Synergies. — Financial Modeling Course References",
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      "text": "VI. Mergers & Acquisitions (M&A) D. Financial Model",
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