I should make a T-shirt. One that says, "When I was your age, I could use pooling accounting on my merger."
Pooling was disallowed, of course, in 2001. It allowed companies to avoid goodwill and thus save a temporary hit to EPS. Strange, huh? Accounting choice did not affect future cash flows. The investors shouldn't care. But management did. EPS mattered dearly.
Most of you understand the heart of the matter here, and if so, skip to the next paragraph. If not, the gist is as follows: In merger waves, acquirers tend to pay higher than book value for target firms.