Day 1 - Fully Integrated M&A Modeling

During this session, participants learn how to build a full-blown merger model which combines two fully-integrated financial statement forecasts. Practical consolidation issues are addressed, and the analysis undertaken is greatly expanded. The deal analysis focuses on the financing structure, pricing, earnings and credit impact and value creation.

Key topics:

• The advantages of a full-blown merger model
• Preparing the stand-alone data for acquirer and target
• Preparing key deal data
• Building a flexible funding structure using a sources and uses of funds table
• Calculating goodwill
• Dealing with fair value adjustments to the target's net assets
• Dealing with refinancing of target's debt
• Modeling fees (advisory, debt-issuance and equity-issuance)
• Consolidating the financial statements of acquirer and target
• Synergies
• Earnings accretion / dilution and relative P/E analysis
• Assessing the value creation potential of the deal using return on invested capital (ROIC) analysis
• Contribution analysis
• Analysis at various prices (AVP)
• Net present value of synergies versus control premium
• Identifying the maximum offer price and a suitable financing mix