merger vs LBO model

Which of the following statements are TRUE regarding the DIFFERENCES in the pro-forma Balance Sheet
adjustments in an lbo model vs. the adjustments in a merger model?
a. Under Long-Term Liabilities, there are likely to be more debt tranches in an LBO model than there are in
a merger model.
b. The formula for calculating newly created Goodwill is different in an LBO model, because with an LBO a
shell corporation created by the PE firm purchases the company.
c. In a merger model, the target company’s existing Shareholder’s Equity balance is reset to $0, whereas in
an LBO model the company’s existing Shareholders’ Equity is added to the “Common Equity
Contribution from Financial Sponsor” line item.
d. In a merger model, you’re likely to modify the Cash & Cash-Equivalents number on the Balance Sheet,
but in an LBO model this is uncommon since cash does not change in the transaction.
e. In a merger model, you may adjust for items like inter-company Accounts Receivable and inter-company
Accounts Payable to eliminate redundant entries, but in an LBO model you would not make these
adjustments since the company is not being acquired by another “real” company.