Financial Analysis of Mergers and Acquisitions: Understanding Financial Statements and Accounting Rules with Case Studies

Mergers and acquisitions (M&As) are crucial for companies to expand market share and gain a strategic advantage. This textbook helps readers better analyze M&A transactions by providing information on accounting and reporting of consolidations, goodwill, non-controlling interests, step acquisitions, spin-offs, equity carve-outs, joint ventures, leveraged buyouts, disposal of subsidiaries, special purpose entities, and taxes. It focuses on the link between underlying economic events and the information in financial statements and how this link affects the assessment of corporate performance.

Format: Paperback / softback
Length: 298 pages
Publication date: 04 February 2022
Publisher: Springer Nature Switzerland AG

Mergers and acquisitions (M&As) play a pivotal role in reshaping the corporate landscape, enabling companies to expand their market share and secure a strategic advantage. Acquiring the ability to understand and analyze these transactions is of utmost importance. The first step towards developing this skill lies in gathering and analyzing information on M&As from public sources, such as financial statements. This textbook serves as a valuable resource in enhancing readers' ability to analyze M&A transactions by utilizing the information provided in financial statements. It comprehensively covers various aspects of accounting and reporting related to M&As, including consolidations, goodwill, non-controlling interests, step acquisitions, spin-offs, equity carve-outs, joint ventures, leveraged buyouts, disposal of subsidiaries, special purpose entities, and taxes. The primary focus of the textbook is on the connection between underlying economic events and the information conveyed in financial statements, and how this connection impacts the assessment of corporate performance.

The first part of the book provides a comprehensive description of the accounting rules governing M&A transactions. It delves into the principles and guidelines that govern the accounting treatment of these transactions, ensuring transparency and accuracy in financial reporting. The second part of the book presents real-life cases of M&A transactions. Each case focuses on a different element of an M&A transaction, providing a practical understanding of the complexities involved. Following each case, a detailed solution is provided, accompanied by a comprehensive analysis.

What sets this textbook apart from others in the field is its exclusive focus on accounting and financial analysis for graduate and upper undergraduate level courses in financial analysis, corporate finance, and financial accounting. It caters to the needs of students seeking to gain a deep understanding of the accounting and financial aspects of M&As, enabling them to apply their knowledge in real-world scenarios.

In conclusion, mergers and acquisitions are critical drivers of corporate growth and competitiveness. By acquiring the skills to understand and analyze these transactions, individuals and organizations can gain a strategic advantage and make informed decisions. This textbook provides a comprehensive and practical guide to analyzing M&A transactions using financial statements, making it an invaluable resource for students, professionals, and anyone interested in the field of financial analysis.

Weight: 492g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030617714
Edition number: 1st ed. 2020