Corp Finance #17 Merger, Acquisition & Foreign Currency

Name: Corp Finance #17 Merger, Acquisition & Foreign Currency
Rating: 4.5 (45 reviews)

Learn about mergers, acquisitions, & foreign currency transactions from a certified public accountant (CPA)

Created byRobert (Bob) Steele

Last updated 4/2024

English

What you'll learn

Explain what mergers & acquisitions are
Contrast cash acquisition vs stock acquisition
Discuss business combination methods
Explain the concept of goodwill and how it relates to acquisitions
Describe how a tender offer works
Discuss how a tax loss carryover can impact an acquisition
Calculate the impact on earnings per share of an acquisition
Describe common foreign currency transactions
Explain what a forward exchange contract is
Record transactions for purchases and sales involving foreign currency
Describe how a forward contract can be used as a hedge against currency exchange risk

Course content

5 sections • 29 lectures • 7h 24m total length

2005 Mergers & Acquisitions Overview16:31
Explore mergers and acquisitions overview, detailing acquisition versus consolidation, and how friendly and hostile, horizontal and vertical mergers enable benefits like tax loss carry over and antitrust considerations.
2010 Cash Acquisition & Stock for Stock Acquisition6:59
Explore cash versus stock-for-stock acquisitions in mergers, detailing initial cash outflows, EPS impact, dilution risk, and how risk and growth affect the price-earnings ratio.
2015 Business Combinations Methods13:08
Explore the shift from pooling of interest to acquisition method in business combinations, and how fair value revaluations and goodwill shape modern accounting.
2020 Acquisition Accounting Goodwill9:36
Explain how goodwill arises in acquisitions when purchase price exceeds net identifiable assets' fair value, how it is capitalized, allocated to reporting units, and tested annually for impairment.
2025 Tender Offer12:52
Learn how tender offers target stockholders with a premium to gain a controlling interest, and explore two-step mergers and defenses like white knights, staggered boards, and poison pills.

2010 Acquisition & Tax Carryover with Even Inflows7:18
Evaluate an acquisition with a tax loss carryover and even cash inflows of 310000 per year, using a 12% discount to assess net present value and tax benefits.
2012 Acquisition & Tax Carryover Spread Over Multiple Years11:49
Explore how an acquisition leverages a 700,000 tax loss carryover across three years. Use Excel and if-then logic to allocate income under a 30% tax rate.
2013 Acquisition Uneven Returns Prob. 115:29
Analyze acquisition cash flows in Excel, including synergistic benefits, and compute present value and net present value at 11 percent across a 20-year horizon.
2014 Acquisition Uneven Returns Prob. 215:37
Analyze an acquisition with uneven cash inflows and synergistic benefits using Excel, comparing annuity and net present value methods at a 14 percent discount rate.
2015 Merger & Earnings Per Share6:58
Explore mergers by performing a share-for-share exchange to calculate combined earnings and post-merger earnings per share through Excel practice problems.
2017 Acquisition & Earnings Per Share8:10
Compute acquisition price per share by applying a 53 percent premium to market value and determine shares to issue. Evaluate post merger earnings per share and the price earnings ratio.
2018 Acquisition in Two Steps6:14
Analyze a two-step acquisition in Excel: buy 57% of 2.3 million shares at $71, then issue 753k convertible preferred stock at 40% over $43, comparing with a $64 straight offer.
2019 Owner Sells Interest & Tax Obligations11:52
analyze cash versus stock options in a merger scenario, comparing capital gains tax implications at 10% versus ordinary income, and applying time value of money through discounting.
2020 Offer of Acquisition & Impact on Stock Price9:51
Analyze an acquisition offer using Excel to compute per-share value, stock price reactions, and potential gain or loss under merger success or failure, then estimate expected return with probability.
2022 Acquisition, Expected Value, Standard Deviation, & Coefficient of Variation14:38
Explore merger decisions using Excel to compare two acquisition options by calculating expected value, standard deviation, and coefficient of variation, highlighting diversification benefits when choosing a negatively correlated partner.

1110 Foreign Currency Exchange Rates20:47
Learn how foreign currency transactions are recorded and translated into dollars using direct and indirect exchange rates, spot and forward rates, and the factors shaping currency values for consolidation.
1120 Foreign Currency Transactions32:20
Explore how foreign currency transactions are translated into U.S. dollars, using spot rates, balance sheet revaluations, and recognizing gains or losses on payables and receivables.
1125 Forward Exchange Financial Instruments16:08
Explore forward exchange financial instruments and hedging strategies for foreign currency risks, including cash flow and fair value hedges, and the accounting implications for derivatives.
1130 Forward Exchange Contracts7:46
Explore forward exchange contracts, hedges and speculative setups, and learn how banks structure receivables and payables in foreign currencies with fair value accounting.

OneNote Resource0:01
1133 Purchases & Sales Involving Foreign Currency36:35
Learn how to handle purchases and sales in foreign currencies using spot and forward rates, revalue receivables and payables, and recognize gains or losses in journal entries.
1138 P2 Forward Contract to Hedge Commitment Agreement to Purchase24:29
Explore how a 120-day forward contract hedges a firm commitment to purchase Australian dollars for furniture, using a fair value hedge and detailed journal entries.
1138 P3 Forward Contract as a Cash Flow Hedge20:21
Use a forward contract as a cash flow hedge for a US company’s Australian dollar payable. See how journal entries and other comprehensive income capture hedge gains and losses.
1138 P4 Forward Contract for Speculative Purposes Only12:44
Analyze a forward contract for speculative purposes using a 100,000 Australian dollar example, detailing journal entries, initial recording, spot and forward rates, year-end revaluation, and gains and losses.

1133 Purchases & Sales Involving Foreign Currency27:13
Explore practical foreign currency accounting with Excel, recording US purchases and sales in CAD, GBP, and yen, applying spot and forward rates, and calculating gains and losses.
1138 P1 Forward Contract to Manage Foreign Currency Risk from Purchase19:24
Explore how a 120-day forward contract manages foreign currency risk in a 100,000 australian dollar furniture purchase, with journal entries and year-end revaluations.
1138 P2 Forward Contract to Hedge Commitment Agreement to Purchase24:08
Explore how a 120-day forward contract hedges a firm commitment to purchase furniture in Australian dollars, with fair value adjustments and gains or losses capitalized into the depreciable asset.
1138 P3 Forward Contract as a Cash Flow Hedge20:33
Use a forward contract as a cash flow hedge for a US company purchasing Australian furniture. Learn to record journal entries, revalue receivables, and report other comprehensive income year one.
1138 P4 Forward Contract for Speculative Purposes Only15:12
Examine a speculative forward contract on 100,000 Australian dollars, recording journal entries, revaluations, and gains or losses using spot and forward rates in Excel practice.

Requirements

An understanding of corporate finance fundamentals

Description

This course will cover mergers, acquisitions & foreign currency.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

We will discuss what acquisitions and mergers are and how they may be structured, including cash acquisitions and stock for stock acquisitions.

The course will discuss different business combination methods, including the concept of a tender offer.

Learners will also understand some tax implications related to acquisitions, including those that can be created from a tax loss carryover.

We will calculate the impact of a merger on earnings per share.

The course will cover foreign currency exchange rates and foreign currency transactions.

We will learn how to calculate purchases and sales involving foreign currency. Learners will also understand how to use forward contracts as a hedge to reduce risk.

Learners will understand how forward contracts are calculate. We will learn how use forward contracts for speculative purposes. We will also discuss how forward contracts can be used as a hedge to medicate risk related to foreign currency fluctuations.

Who this course is for:

Business students
Business professionals

Corp Finance #17 Merger, Acquisition & Foreign Currency

What you'll learn

Explore related topics

Course content

Presentations - Mergers and Acquisitions5 lectures • 59min

Excel Probs. - Mergers and Acquisitions10 lectures • 1hr 48min

Presentations - Foreign Currency & Exchange Rates4 lectures • 1hr 17min

Presentations - Foreign Currency & Exchange Rates5 lectures • 1hr 34min

Excel Probs. - Foreign Currency & Exchange Rates5 lectures • 1hr 47min

Requirements

Description

Who this course is for: