Cash Flow Statement in M&A
I know how purchase accounting affects the balance sheet and the income statement in M&A accounting, but how is the cash flow statement of the buyer affected in mergers/acquisitions?
bump
when you adjust the IS, you'll add the two income statements together, adjusting for addtional interest expenses, lost interest income, synergies, additional depreciation from writeup etc. Additionaly, you'll make changes to financing and investing sections based upon how you paid for the company. From here you'd build the cash flow statement how you normally would in a model
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