You are modeling a potential M\&A transaction. Which of the following would NOT be a positive adjustment to the Acquirer's Pro forma Assets? 1. Cash used to acquire the target 2. PPE write-up of target 3. Intangibles write-up of target 4. Goodwill write-up of target 5. Newly-created Deferred Tax Liabilities 1 and 2 only 2 and 3 only 1 and 5 only 1,2 and 5 only 2,3 and 4 only 2, 3 and 4 only Which of the following is FALSE in a potential Acquisition transaction? 1. PPE and Intangible write-ups lead to additional future D\&A expense, thus lower future cash flow 2. Using Equity as consideration will lead to more Acquirer outstanding shares, and potentially more Earnings dilution 3. Revenue synergies could lead to higher Pro forma EPS, in contrast to Cost synergies, which typically lead to higher future D\&A and lower future EPS 4. Additional Goodwill created in an Acquisition transaction typically creates more future cash flow, because its future annual amortization leads to lower cash taxes 5. Deal Fees (advisory, legal, etc.) are expensed immediately, while Financing fees are amortized over the term of the new debt 1 and 2 3 and 4 4 and 5 1,3 , and 4 1,3 , and 5