OVERVIEW

This is a two-part course focusing on M&A Analysis Fundamentals and M&A Modeling.
 
8.5 hours of video content.
Estimated 17 hours to complete.

PREREQUISITES

This course is open to all. To maximize the benefit of this course we recommend an understanding of financial statements and Microsoft Excel.

 

M&A Anlaysis Fundamentals:

This course covers the basic steps of analyzing an acquisition - covering the impact of a deal on the financial statements with a particular focus on EPS, PE and contribution analysis. By the end of the course, you will build an accretion / dilution model using EPS forecasts and acquisition assumptions, proforma leverage ratios and a proforma balance sheet.

M&A Modeling:

Learn to build a comprehensive, three-statement merger model. All key assumptions required, and outputs of such an analysis will be explored with an emphasis on the impact on the financials of the buyer in a strategic acquisition.

KEY FEATURES

  • Build a detailed Sources & Uses table, including impact of dilutive instruments in the target, operating cash requirement, and equity issuance, debt issuance and advisory fees
  • How to consolidate the two balance sheets at deal dates, including the impact of fees, asset step-ups and related deferred tax liabilities, and related Goodwill adjustments
  • How to build a fully integrated three-statement model including funding, synergy and tax implications
  • How to generate a variety of outputs to analyse the deal including: EPS accretion / dilution, ROIC, premium vs. synergy analysis, analysis at various prices (AVP), and contribution analysis

TOPICS COVERED

Complete topics step by step or jump to any of the below at any time.

M&A Analysis Fundamentals:

  • Big picture: what is the transaction impact on acquirer and target shareholders?
  • Preparing key acquisition data
  • Building a flexible funding structure
  • Modeling acquisition adjustments
  • Calculating the accretion / dilution effects of the deal
  • Calculating and understanding contribution analysis
  • Ownership issues
  • Income statement contribution
  • Credit issues and leverage ratios
  • The strategic implication of different financing alternatives
  • Synergies and synergies needed to break even
  • Proforma balance sheet
  • Sensitivity and scenario analysis

M&A Modeling:

  • 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 vs. control premium
  • Identifying the maximum offer price and a suitable financing mix
  • Building data tables to sensitize outputs to key input assumptions

**Training The Street acquired AMT Training in 2021. We have merged AMT's products into one store, to increase our content offering.**

Save money with this course by purchasing our bundle!

This course is available in the:
Essentials 10 Courses Bundle - Valuation, Modeling and Origination.

Save up to 57% on all courses with this bundle!
The bundle includes the following courses:

  • Financial Statement Analysis
  • Excel Best Practices for PC: Become an Excel Expert
  • Financial Modeling: Building a Complete Model in Excel
  • Corporate Valuation: How to Value Companies and Mergers
  • Merger Modeling: How to build an M&A Model in Excel
  • LBO Modeling: Building an LBO Model in Excel
  • Capital Markets and Corporate Funding
  • Debt Captial Markets
  • Equity Capital Markets
  • Applied Excel: Working with Data Sets and Scenario Analysis

Group Orders

We offer discounts for group orders on our self-study products. Group orders are an attractive option for companies or teams looking to upskill together.

Contact us at selfstudy@trainingthestreet.com to learn more about how to save money on group orders.

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