Mergers and Acquisitions Model - Step 2

This step of the merger and acquisition (M&A) model layers the financing structure and purchase accounting on top of the standalone forecasts built in Step 1. The video walks through modeling the mix of cash, stock, and new debt used to fund the deal, calculating goodwill created on the balance sheet, and building in transaction-related adjustments like new interest expense, foregone interest income on cash used, and incremental share issuance. These mechanics set up the pro-forma combined entity so you can measure accretion or dilution to earnings per share in the next step.