Mergers & Acquisitions Modeling

This course is designed to show attendees how to build a flexible mergers and acquisition model which provides sensitivity and reporting to improve analysis.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
14
This is relevant for all practitioners involved in developing and using M&A models.
No advance preparation required.
Students will be able to:
  • Implement spreadsheet best practice using the Systematic Design Method
  • Build a structured M&A model
  • Understand how to avoid modelling mistakes
  • Add sensitivity and other features
  • Produce comprehensive reporting
Attendees must have a working knowledge of Excel and basic corporate finance knowledge.
Computers
Attendees must bring their laptops.
Initial Model
M&A Theory
  • Overview of the course
  • Case study outline
  • Model structure and planning
  • Financing considerations
  • Optimum capital structure - balancing operational and financial risk
  • Exercise: model planning

Modelling Stand Alone Accounts

  • Setting out financial accounts
  • Modelling issues
  • Forecasts
  • Integrated income statement, balance sheet and cash flows
  • Calculate key ratios
  • Case: adding accounting schedules

Valuation

  • Review of valuation methods
  • Cost of capital and terminal value
  • Initial DCF valuation
  • Peer groups
  • Case: calculating values on template

Consolidated Accounts

  • Adjustments and eliminations
  • Pro-forma accounts
  • Source and use of funds
  • Case: producing consolidated accounts
  • Questions and answers

Model Completion
Ratio Analysis
  • Key ratios (EPS, ROCE)
  • EPS accretion/dilution
  • Impact of capital structure
  • Synergies and benefits
  • Exercise: calculating EPS effects

Consolidated Valuation

  • Pro-forma WACC
  • DCF valuation of combined business
  • Valuation of synergies
  • Comparison to standalone business
  • Review of main assumptions
  • Case: producing combined valuation

Synergy and Sensitivity

  • Tools for sensitivity analysis
  • Key forecast, valuation and financing inputs
  • Checking outputs
  • Exercise: adding sensitivity methods

Final Considerations

  • Achieving target outputs
  • Optimisation methods
  • Testing different structures
  • Case: targetng the case to improve outputs
  • Questions and Answers

Lunch is included for all students taking day classes.