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Business Combinations Exercise

Table of Contents
Business Combinations

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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Business Combinations Exercise

Company XYZ acquires all of the equity of Company ABC in a business combination and assumes control at the closing d

A summary of the key assumptions at the acquisition date include:


Cash Consideration Paid By Company XYZ
Value of Stock Issued by Company XYZ to Company ABC Shareholders
Transaction Costs Incurred by Company XYZ
Fair Value of Company ABC's Identifiable Tangible Assets
Fair Value of Company ABC's Assumed Liabilities
Fair Value of Company ABC's Identifiable Intangible Assets

Show the amount of goodwill recognized by Company XYZ from the acquisition of Company ABC

Acquisition Consideration

Cash Consideration
Value of Stock Issued by Company XYZ to Company ABC Shareholders
Total Consideration Transferred

Net Assets Acquired

Fair Value of Identifiable Tangible Assets


Fair Value of Identifiable Intangible Assets
Fair Value of Assumed Liabilities
Fair Value of Acquired Net Assets

Goodwill

Total Consideration
Fair Value of Acquired Net Assets
Goodwill
d assumes control at the closing date

$75,000,000
$25,000,000
$2,000,000
$85,000,000
$25,000,000
$15,000,000

$75,000,000
$25,000,000
$100,000,000

$85,000,000
$15,000,000
-$25,000,000
$75,000,000

$25,000,000

$0

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