Day 6 - M&A Modeling

Day 6 - 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. 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