What does the modeling program cover?
The objective of this program is to equip delegates with the expertise and insight required to develop a fully integrated M&A and LBO model and perform financial debt analysis.
Watch our expert financial modeler, Rahul Sonthalia, CFA, CMA provides a keen insight into how you can build a financial model on excel, starting from a blank spreadsheet through our 3-day program.
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
Program Agenda
M&A Modeling
Introduction to M&A Modeling
- Overview of a real life M&A transaction
- Setting up a M&A Model: Calculating Sources and 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
Analysis
- 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
LBO Modeling
Introduction to 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
Analysis
- 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
