Mergers and Acquisitions (M&A) - Modeling

Overview:

This course is perfect for anyone who wants to learn how to build a financial model for mergers and acquisitions from the bottom up.  The video-based lessons will teach you all the formulas and functions to calculate stub periods, outline sources and uses of cash, perform a purchase price allocation and determine goodwill, create multiple scenarios for synergies and other key assumptions, and integrate all of the above into a well laid out pro forma model.

In addition to learning the detailed mechanics of how to build the model, you will also learn how to assess the impact of the transaction through accretion/dilution analysis and the impact on the implied share price (intrinsic value per share).  By performing sensitivity analysis, users will understand how a change in assumptions impacts future outcomes of the merger or acquisition.

Course Content:

In this course, you will gain knowledge about the following topics:

• Learn how to structure an M&A model in the most efficient way
• Set up all the assumptions and drivers required to build out the M&A model
• Calculate all the necessary adjusting entries required to create a post-transaction balance sheet
• Integrate the acquirer and the target into a pro forma model
• Calculate the accretion or dilution of key per-share metrics post-transaction
• Perform sensitivity analysis on key assumptions and assess the overall impact of the transaction

Learning Objectives:

This course is built on a case study of Online Company Inc acquiring Brick ‘n’ Mortar Co.

Through the course of the transaction, you will learn about:

• The construction of a detailed Pro Forma model
• Analysis of synergies, revenue enhancements, cost structures
• Integration considerations
• Accretion / dilution analysis
• Deal terms and structuring
• The strategic impact of combining the businesses
• Share price impact

Who Will Benefit: 

This course is designed for professionals working in investment banking, corporate development, private equity, and other areas of corporate finance that deal with analyzing M&A transactions.