Eli Lilly Q3 2026 Earnings: Revenue Up 39%, EPS Up 16% After a $4.2B Acquired R&D Charge
Eli Lilly's Q3 2026 revenue rose 39% to $24.4B but EPS only 16%: a $4.2B acquired IPR&D charge, bigger than any full year since 2021, absorbed the gain.
#mergers-and-acquisitions
Mergers and Acquisitions
Accounting guidance for business acquisitions, goodwill, purchase price allocation, and deal structuring
Starbucks FY2026 Earnings: Profit Up 36% as China Licensing Shrinks the Balance Sheet 11%
Starbucks FY2026 net income rose 36% to $2.5B on 2% revenue growth, while licensing out China stores cut total assets 11% and goodwill by $2.1B.
Filing a Consolidated Federal Tax Return: The 80% Affiliated-Group Test, the Form 1122 Election, and Why Netting Profits Against Losses Isn't Always Worth It
An 80%-owned corporate group can net losses against profits on one federal Form 1120 — but joint liability and a binding election come with it.
Section 304, Explained: Why Selling Stock in One of Your Corporations to Another Gets Recast as a Dividend, Not a Capital Gain
Section 304 recasts stock sales between your own corporations as redemptions — proceeds come back as dividends to the extent of either company's earnings.
Control Premiums, Explained: Why 51% of a Company Is Worth More Than 51% of Its Value
A 51% stake commands a 20–40% control premium over pro-rata value, pricing the power to set dividends, strategy, and sale timing.
No-Shop vs. Go-Shop, Explained: How Merger Agreements Control the Search for a Better Offer — Solicitation Bans, the Go-Shop Window, Fiduciary Outs, and Two-Tier Breakup Fees
A no-shop bars soliciting rival bids after signing; a go-shop allows a 30-to-60-day market check with a reduced breakup fee if a better offer wins.
Locked Box vs. Closing Accounts: How Buyers and Sellers Fix the Purchase Price
A locked box freezes the price on an old balance sheet, so interim profit goes to the buyer; closing accounts true it up at closing. Which side each favors.
Common-Control Transactions, Explained: Moving Assets Between Sister Companies at Carryover Basis Under ASC 805-50
Under ASC 805-50, sister-company transfers book at the parent's carrying amount — no step-up, no goodwill — with prior periods restated.
Liquidation Preference, Explained: Who Gets Paid First When Your Startup Exits
A 1x non-participating liquidation preference pays investors back before common sees a dollar — participating preferred double-dips on top.
Appraisal Rights, Explained: How Dissenting Shareholders Force a Court to Price Their Shares
Appraisal rights let a dissenting shareholder refuse the deal price and take court-determined fair value instead — with no minority discount.
The Excess Earnings Method, Explained: How Appraisers Split Your Business Value Between Tangible Assets and Goodwill
The excess earnings method prices goodwill as profit above a fair return on tangible assets, capitalized at 15-20% — then adds tangibles for total value.
Guideline Public Company vs. Guideline Transaction Method: How Appraisers Value a Private Business
Appraisers value private companies off public trading multiples and past deals, then add a 20–40% control premium and subtract marketability discounts.