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M&A Modelling
Week 1
Design Research
4 videos, 1 reading
Video: The Interaction Design Specialization
20 m
Video: Introducing Elizabeth Gerber
40 m
Video: Who, What, Where, When and How People Work
35 m
Video: Michael Chapman of IDEO on Interviewing
20 m
Reading: Slides
30 m
Graded: Final Quiz: Design Research
5 Questions
Week 2
Ideation
2 videos
Video: The Interaction Design Specialization
20 m
Video: Introducing Elizabeth Gerber
40 m
Graded: Cumulative Quiz
4 Questions
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M&A Modelling

  /  Finance and financial management  /  M&A Modelling

M&A Modelling

About this course

Introduction

Do you want to know how experts at investment banks, private equity firms and other financial institutions analyze the impact of mergers & acquisitions? In this course, you’ll learn how to build a real M&A (accretion/dilution) model in Excel from scratch. In addition, you will build a contribution, synergy and exchange ratio analysis, and learn key M&A accounting concepts.

Build an Accretion/Dilution (M&A) Model to reflect the pro forma impact of various Merger & Acquisition scenarios. Using a real case study, you will model out the acquisition of one company by another company, correctly incorporating pro forma balance sheet and income statement adjustments.

Key outlines

  • Introduction to the M&A landscape
  • Typical buy side and sell side processes and deal timelines
  • A review of common deal structures
  • Understanding acquisition accounting & purchase price allocation
  • Understanding deferred taxes created and lost in M&A
  • Dealing with convertible securities and options in M&A
  • Performing a back-of-the-envelope accretion-dilution analysis


Accretion/Dilution and M&A modeling

  • Building a complete accretion dilution model
  • Forecasting pro forma financial statements, and learning to make correct adjusting entries for goodwill and fair market value write ups, advisory fees and financing fees and debt refinancing
  • Calculating pre-tax synergies to break-even
  • Sensitivity analysis using data tables to determine accretion/dilution to target shareholders in various stock/cash scenarios
  • Error-check a merger model
  • Sales, EBITDA, and ownership contribution analysis