Merger And Acquisition Modelling
 

What you'll learn
Learn how to construct a flexible, integrated merger model for 2 businesses
Analyse the pro-forma credit ratios and combined profit metrics post-merger
Construct sensible financing assumptions for the deal (combining debt and equity)
Apply best-practice modelling techniques to perform the modellinga and analysis
Create a model that can be used as a template for other deals to be analysed
Requirements
This course assumes a sound grasp of core financial modelling (in excel) techniques and an awareness of some of the accounting issues - such as goodwill and fair values, but this will be illustrated in the course.
Description
This intensive video-based course assumes a sound grasp of financial modelling techniques and awareness of the current accounting implications of M&A transactions.During the course, delegates will construct a flexible integrated merger model capable of analysing the pro-forma credit ratios and combined profit metrics of a proposed transaction whilst also building the functionality to identify the optimal capital structure to be used to finance an acquisition. Best practice financial modelling and accounting techniques will be applied throughout.Merger modelling presents a completely different accounting and technical challenge to preparing an integrated forecast for a single business. This course and the model built is relevant to both equity, debt and credit analysts and corporate financiers who are potentially involved in the origination of or financing of acquisitions.In the programme we will produce a complete forecast for the recent acquisition of Shire Pharmaceuticals by Takeda of Japan and see the huge impact of the fair value adjustments in this transaction.At the end of the programme delegates will:Be able to model a merger from scratch and more effectively populate and interrogate template merger models;Model all aspects of a merger including goodwill and fair value adjustments,refinancingfees and correctly accounting for the different types consolidation adjustmentssynergies, nil-dilution synergies and control premiadeal sensitivity and establishing an optimal financing mix based on target pro-forma credit metrics
Overview
Section 1: Introduction to Merger Modelling
Lecture 1 Introduction
Lecture 2 Merger model recipe
Lecture 3 Sources and Uses
Section 2: Goodwill and Consolidation of the BS
Lecture 4 Goodwill - have a go!
Lecture 5 Goodwill work-through
Lecture 6 Preparing for Consolidation
Lecture 7 BS Consolidation work-through
Section 3: P&L Consolidation, P/E's and Earnings accretion
Lecture 8 P&L Consolidation and calculating earnings accretion
Lecture 9 Analysing earnings accretion
Lecture 10 An all-share solution
Lecture 11 Optimising for capital structure
Section 4: Practical Deal Structuring - a new model to work through
Lecture 12 Q&D model - intro and first steps
Lecture 13 Goodwill - recap and further points
Lecture 14 Q&D model - goodwill and consolidation
Lecture 15 Q&D model - accretion
Lecture 16 Capital Structuring
Lecture 17 Practical deal structuring
This course is ideal for finance graduates or new hires in the investment banking / corporate finance world, or those looking to venture into that area. The model you create is a realistic template of how these deals are analysed in the real world!
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