Merger & Acquisition (M&A) Modelling Course

Location: London (Central)

Dates: Open date - Open date

Duration: -

Price: GBP

This course equips participants for analysing, valuing and modelling a complicated transaction such as a merger or LBO (leveraged buyout). It improves participants’ understanding of the attractions and risks of mergers, acquisitions and levered structures, as used by corporates and private equity firms. By the end of this course, participants will understand: Drivers on merger & acquisition (M&A) activity How to model integrated financial statements How to clean and adjust source data How to use financial statements to value a business How to model the balance sheet impact of acquisitions, spin-offs and demergers and prepare pro-forma acquisition accounts How to analyse and differentiate between financing and operating synergies How to model and present the impact of changes in deal structure, financing mix and capital structure, together with the impact on value How acquisition debt facilities can be structured and modelled Drivers on debt capacity and the interests of debt holders The impact of the choice of financial instrument such as equity, debt or hybrid Risks and rewards to different parties. Much of the course work involves Excel modelling and analysis, equipping participants with the tools to analyse leveraged acquisitions: Building up from partially-complete models Working with integrated financial statements Developing the acquisition structure and modelling instruments Running scenarios, iterating and optimising. This course is run in an interactive, participative format, where participants learn by doing. The key concepts covered in the main teaching sessions are punctuated and illustrated by detailed case and modelling work. Detailed case study work. As part of their work on this course delegates model transactions based on real-life companies and scenarios. The approach has been designed to equip participants to put key concepts into practical use immediately. Delegates will be led through a comprehensive review of analysis practices, from initial principles through to more advanced techniques that are used in transaction analysis. Each participant should have a lap top with USB port to facilitate modelling work on the course. Course categories:Corporate Finance Inhouse, Investment Banking / M & A Inhouse
COVERED TOPICS

Day one - the modelling starting point Merger model build up: the starting point Modelling integrated financial statements Model structure Key forecast ratios Sourcing and cleaning historic data What makes a good model? Do we really need integrated financial statements in M&A modelling? Modelling - integrating financial statements: participants complete a partially-developed financial model for the case study which integrates P&L, balance sheet and cash flow. This model is used to analyse an acquisition by the business Modelling stand-alone valuation Overview of valuation methodologies What do investment banks do? What methodologies could we use? How should we define firm value? Equity vs. enterprise value Calculating free cash flow before financing Understanding and calculating WACC Discussion – calculating WACC Conducting a DCF valuation Modelling - valuation: participants calculate the cost of capital and complete a DCF valuation for the acquirer Financing acquisitions: debt structuring Clear, simple and concise explanation of different debt instruments Senior debt High-yield debt Mezzanine Payment-in-Kind Understanding the nature of different financial instruments and risk profiles Modelling waterfall structures Estimating and optimising debt capacity Modelling – debt structure: participants develop a debt structure for the case study and start to flex the structure within given constraints. How much debt could the business support? How big a target could it contemplate acquiring? What impact does changing the debt structure have on debt capacity? Day two - modelling a new deal; merger modelling case study Developing a new deal structure – sources & uses of funds Developing a “first cut” debt structure Calculating refinancing needs The role of working capital and extra cap ex requirements Typical financing and transaction fees Determining the equity gap Modelling - delegates develop their own deal structure for a transaction conducted by the case business Acquisition modelling – consolidating accounts Key adjustments Working from the post-acquisition balance sheet How to model and consolidate accounts Modelling pro-forma accounts post acquisition Modelling – consolidated accounts: participants incorporate the new deal structure into their model and analyse its impact Merger modelling case study Completing a merger model Getting to DCF valuation for the combined business Valuing operating synergies Valuing financing synergies Analysing the results Sense-checking the output Drawing the right conclusion Modelling – post acquisition valuation: participants complete a merger model for a case business after it has completed its acquisition		Day three - LBO modelling Making money in private equity How private equity works How investors make money Drivers on gains The rationale for leveraged finance Review of the market for private equity Private equity fundamentals How private equity players make their money Private equity life cycle Jargon-busting Financing alternatives: equity The nature of equity instruments The different risks and rewards accruing to different parties The impact of loan stock & preference shares Iterating to optimise rewards to key participants Key drivers for equity investors Exits: the good, the bad & the ugly Exercise - the choices for exit – a real case study: you are a private equity firm’s representative on the board of an investee company. The business has grown to the point where exit is a possibility and management are still ambitious for the business. Which exit route are you going to recommend to the board? Completing the analysis: repaying debt and building value This session will take much of the third day and will also allow some time to catch up or cover in more detail issues arising out of other parts of the course Iterating around value Rewards to the various parties (institutional equity, management, debt) Modelling - finalising a buy out model: participants modify their model, providing an opportunity to understand the likely impact of key adjustments to assumptions and analyse the risks and opportunities the transaction will face. Participants model returns to the various parties and iterate to optimise returns. At the end of this session participants will have a simple and working buy out model that is structured clearly Course conclusion: best practice in transaction analysis Participants who have improved their understanding of and have had experience of modelling a merger and leveraged acquisition/ LBO Simple and clear reference Excel models - providing participants with a platform for future internal modelling efforts and aiding decision making Participants who, at the end of the course, understand the drivers on transactions and how transactions can be modified to suit the various parties.

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Price: GBP
Location: London (Central)
Event date: Open date - Open date
Event duration: -
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ADDITIONAL DATES

Email: info@financialveritas.com

Phone: +44 208 133 5917

Merger & Acquisition (M&A) Modelling Course

Detailed case study work. As part of their work on this course delegates model transactions based on real-life companies and scenarios.

Day one - the modelling starting point

Modelling - integrating financial statements: participants complete a partially-developed financial model for the case study which integrates P&L, balance sheet and cash flow. This model is used to analyse an acquisition by the business

Modelling - valuation: participants calculate the cost of capital and complete a DCF valuation for the acquirer

Day two - modelling a new deal; merger modelling case study

Modelling - delegates develop their own deal structure for a transaction conducted by the case business

Modelling – consolidated accounts: participants incorporate the new deal structure into their model and analyse its impact

Modelling – post acquisition valuation: participants complete a merger model for a case business after it has completed its acquisition

Day three - LBO modelling

TRAINING

CONFERENCES

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