Why is pro forma information presented in merger proxy statements (DEF 14A) and registration statements (S-4)?...
Why is pro forma information presented in merger proxy statements (DEF 14A) and registration statements (S-4)?
NOTE: this question related to the merger of Shire & Baxalta
Homework Answers
A pro forma financial statement is one based on certain assumptions and projections.
Proforma adjustments are added to the Unadjusted financial statements and the resulting statements is known as pro forma financial statement, to show the impact of a significant event or transaction to illustrate as if such transacton or event has occured during past.
Under Shire and Baxalta merger, Unadjusted financial statements ie Financial Statement of Shire before merger are adjusted with Performa adjustments (ie to show the impact of significant event of merger) resulting in pro forma financial statements which show the effect of merger on Shire inc. or Post merger financial statements.
such information is also included in registraton statements and prospectus so that Regulators as well as investors can see the the
1.Shire inc before merger and
2. impact of merger on shire inc and
3. projected post merger Financial statements of Shire Inc.
Pro forma Financial statements may be found at: https://www.sec.gov/Archives/edgar/data/936402/000095010316016069/dp68027_ex9903.htm
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Why is pro forma information presented in merger proxy
statements (DEF 14A) and registration statements (S-4)?...
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(Show a negative free cash flow with either a - sign
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$Enter the amount in
thousands of dollars
$Enter the amount in...
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Columbia Sportswear Company’s financial
statements are presented in Appendix B.
Financial statements of VF Corporation are
presented in Appendix C.
(a) Based on the information contained in these
financial statements, compute free cash flow for each company.
(Show a negative free cash flow with either a - sign
e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in
thousands.)
Columbia Sportswear Company
VF Corporation
Free cash flow (in thousands)
$Enter the amount in
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$Enter the amount in...
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