The objective of this program is to equip participants with knowledge and tools to develop financial models with the aim to efficiently analyze a merger and acquisition, private equity and LBO transaction.
Learning objectives
Understand and develop a merger model
Prepare proforma group financial statements
Perform financing mix and accretion dilution analysis
Understand and develop an LBO deal analysis model
Prepare flexible debt schedules for different sources of debt
Understand and prepare a source of value creation in private equity transactions
Who should attend
Professionals and graduate students working or aspiring to work in the field of investment banking, private equity, sovereign wealth funds, corporate finance consulting, asset management and equity research.
Agenda
Day 1
Introduction to the real life M&A transaction
Setting up a M&A Model – Calculating Sources &i; Uses of funds
Preparing Pro forma Financial Statements
Introduction to M&A accounting
Goodwill
Accounting for sources and uses of funds
Forecasting acquirer & targets key financials
Consolidating financial statements
M&A Model output:
EPS Accretion-Dilution Analysis
Contribution Analysis
Post transaction P/E requirement for breakeven
Sensitivity Analysis using data tables
Case Study: Large global or regional public M&A transaction
Introducing the case study company
Model design and structure for the case study company
Know the key model outputs and their drivers
Understand the requisite inputs
Developing cell styles for model transparency and review
Day 2
Introduction to Private Equity and LBO modeling
Understanding characteristics of a good LBO candidate
Forecasting the operating cash flows of the LBO target
Target’s enterprise value and uses of funds
Various sources of funds
Senior Debt (Term Loan A, B, etc.)
High yield , Mezzanine, PIK and Shareholder loan
Revolving line of credit
Preparing flexible debt and interest repayment schedules for different sources of funding
Incorporating cash sweep in debt schedules and avoiding circularity
Calculating exit IRR and MOIC for the GP and analyzing the sources of value creation
Scenario and Sensitivity Analysis for analyzing LBO
Case Study: Large global or regional LBO transaction
