I was hoping for some help to record an acquisition for cash and stock - WSFS/Beneficial.

qmoco

I was hoping for some help to record an acquisition for cash and stock.  In Quicken, I see an option to record a stock for stock acquisition, but not where cash is also provided.  Specifically, this is related to WSFS Financial Corp acquisition of Beneficial Bancorp.  WSFS provided .301 WSFS shares and $2.93 for each Beneficial share.  Thank you!

q_lurker

The form 8937 for this transaction is available here:  http://investors.wsfsbank.com/index.php/financial-information
That make a pretty good presentation.

For Quicken, these types of transactions (cash-to-boot mergers or acquisitions) are too complicated to process with a "Wizard" popup form.  

As presented in the 8937, the two key values are the $13.04 value of stock received and the $15.97 total value received.  They determined that value of stock received as 43.28 x 0.3013 where the $43.28 was the fair market value of one share of WSFS upon closing the deal.

My procedure in these cases is as follows considering each lot of Beneficial shares separately -- 
Step one:  Sell shares of Beneficial

1. If your basis for any lot of your Beneficial holding was less than 13.04 / share, you sell the Beneficial shares for that basis + 2.93 / share. (gain = $2.93/share)
2. If your basis for any lot was between 13.04 and 15.97 / share, you sell that lot of shares for $15.97 / share (gain is between $0 and $2.93 / share)
3. If your basis for any lot was over $15.97 / share, you sell the shares for their basis (gain = $0/share)

Step two:  Buy shares of WSFS == 0.3013 times the number of shares sold.  If you sold 30 shares of Beneficial for this lot you buy 9.039 shares of WSFS.  You are buying these shares for a price that leaves the $2.93 / share actual cash received in the account.   

1. Example:  If your basis for this lot of your Beneficial holding was $7/ share, you sold that for $9.93 / share and now buy 0.3013 shares of WFSF shares for $7  leading to a per-share price of $23.233 ($7 / 0.3013)
2. Example:  If your basis was $14/share, you sold for $15.97/share of Beneficial and you buy WSFS shares at $43.28/share ($13.04 / 0.3013)
3. Example:  If your basis was $17 / share, you sold for $17 / share of Beneficial and you buy WSFS shares at ($17 - $2.93) / 0.3013 = $46.698 / share

Step 3:  Remove the shares just bought and the enter an Add Shares to add them back in but specify the proper acquisition date as when the Beneficial shares of that lot had been acquired.

When those steps are completed for all lots, sell any resulting fractional shares for the cash-in-lieu (CIL) amount you received as part of the deal.  That is a cash amount separate from the $2.93/share.

Post back with other questions and details if needed.

HTH

q_lurker

The form 8937 for this transaction is available here:  http://investors.wsfsbank.com/index.php/financial-information
That make a pretty good presentation.

For Quicken, these types of transactions (cash-to-boot mergers or acquisitions) are too complicated to process with a "Wizard" popup form.  

As presented in the 8937, the two key values are the $13.04 value of stock received and the $15.97 total value received.  They determined that value of stock received as 43.28 x 0.3013 where the $43.28 was the fair market value of one share of WSFS upon closing the deal.

My procedure in these cases is as follows considering each lot of Beneficial shares separately -- 
Step one:  Sell shares of Beneficial

1. If your basis for any lot of your Beneficial holding was less than 13.04 / share, you sell the Beneficial shares for that basis + 2.93 / share. (gain = $2.93/share)
2. If your basis for any lot was between 13.04 and 15.97 / share, you sell that lot of shares for $15.97 / share (gain is between $0 and $2.93 / share)
3. If your basis for any lot was over $15.97 / share, you sell the shares for their basis (gain = $0/share)

Step two:  Buy shares of WSFS == 0.3013 times the number of shares sold.  If you sold 30 shares of Beneficial for this lot you buy 9.039 shares of WSFS.  You are buying these shares for a price that leaves the $2.93 / share actual cash received in the account.   

1. Example:  If your basis for this lot of your Beneficial holding was $7/ share, you sold that for $9.93 / share and now buy 0.3013 shares of WFSF shares for $7  leading to a per-share price of $23.233 ($7 / 0.3013)
2. Example:  If your basis was $14/share, you sold for $15.97/share of Beneficial and you buy WSFS shares at $43.28/share ($13.04 / 0.3013)
3. Example:  If your basis was $17 / share, you sold for $17 / share of Beneficial and you buy WSFS shares at ($17 - $2.93) / 0.3013 = $46.698 / share

Step 3:  Remove the shares just bought and the enter an Add Shares to add them back in but specify the proper acquisition date as when the Beneficial shares of that lot had been acquired.

When those steps are completed for all lots, sell any resulting fractional shares for the cash-in-lieu (CIL) amount you received as part of the deal.  That is a cash amount separate from the $2.93/share.

Post back with other questions and details if needed.

HTH

qmoco

q_lurker,  Thank you for the very detailed answer!  That is exactly what I needed, and I appreciate you taking the time to walk through the scenario.  I followed the steps, and I am all set now!