How to track merger resulting in one company with 2 share classes?

HCC2

In one IRA account, I have holdings in two private equity companies. They are going to merge. In the new company, I shall have holdings in 2 share classes, each with its own share value...very different amounts. This account is hand entry, so no download. Does Quicken even handle 1> in a "security", or do I need to create two new "securities", each with its own share value?

Frankx

Hi @HCC2,

So, it sounds like you currently own shares in each of  2 PE companies that are merging.  Presumably your "Quicken IRA account" has shares of each PE company in it currently.  Since the merger will result in one company that has two different share classes AND since you will receive shares of both share classes as a result of the merger, then yes - you will need to establish 2 share classes for the new company in your Quicken "Security list".  If we assume the name of the new company is "Acme Company" you can call them "Acme Company - Class A shares" and  "Acme Company - Class B shares".

As far as entering the actual merger transaction details, that will depend on the specific details of the transaction.  I am guessing that perhaps each of the two original PE companies will constitute one of the two share classes.  If that is the case, the transaction that you will need to enter into Quicken will be much easier.  That's because you could simply do a "security name change" for each of the old companies and then follow that with an adjustment to the number of shares via a "shared added" or "shares removed" transaction for each new entity.

So let me know whether what I have described is close to what will happen in the "merger transaction" and/or where I have guessed wrong.  And then, If you provide some specific details I may be able to clarify or adjust what I've said above so that you'll be able to properly record the transactions.

Frankx