Advanced Merger Modeling

Description

This hands-on advanced course focuses on the skills required to design and create a powerful model to analyze the impact of a merger or acquisition. Participants will be asked to incorporate several additional components into an existing merger model, including various break-even points, cash flow impact and forecasted summary balance sheets.

Prerequisites

This course builds on the modeling skills already discussed in "Merger Modeling", so participants may want to complete that course prior to taking the "Advanced Merger Modeling" session.

Time

8 hours

Learning Topics

Build a Merger Model

Review the various assumptions required to prepare a merger model
Identify potential synergies and incorporate them into the model
Use various forms of consideration in an acquisition
Calculate the impact of mergers and acquisitions on a buyer’s financial statements
Review and incorporate various checks to make sure the model is working properly
Incorporate powerful Excel tools to sensitize the outputs
Create summary analysis to synthesize and display important information

Determine the Impact on an Acquirer’s Financial Statements

Understand various break-even points in the merger model
Analyze the accretion / dilution using a “like-for-like” capital structure to identify the cause of the accretion / dilution
Modify the merger model to incorporate a target capital structure on the closing date of the transaction
Analyze the impact of an acquisition on the acquirer’s cash flows, including whether the acquirer can maintain its dividend following the acquisition
Incorporate forecasted pro forma balance sheets into the model
Understand the tax implications of buying shares vs. buying assets, including how this impacts the buyer’s financial statements over time