Advanced Merger Modeling


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.


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.


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
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