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Modelling for Divestitures

Master the Modelling of Integrated Financial Statements

Modelling for Divestitures Training Course

A one-day course

  • This course is hands-on with practical examples and illustrations in excel exercises and case studies
  • The trainer has qualified as a Chartered Accountant and well qualified to understand both the accounting and financial aspects of the workshop
  • He has spent time working on building models to incorporate the financial effects of various types of transactions

Learn how to analyse and model the proforma financial effects of different types of disposal and the different uses of proceeds

Divestiture Analysis and Modelling

This course examines the main divestiture structures available to a firm. The advantages and drawbacks of each structure are explained and their balance sheet impact is analysed in detail. Excel exercises and cases are used throughout the course. Our main case study will be the hypothetical divestiture of Primark from Associated British Foods plc. We will consider the impact on the group’s accounts under the various alternative divestment structures. Individual exercises will be a performance to demonstrate the income statement and balance sheet impact of each structure. Key topics:
  • Overview of divestiture alternatives available to firms
    • Divestiture (private sale and IPO)
    • Spin-off/ De-merger
    • Split off
    • Equity carve-out
  • Creating the balance sheet post-deal
    • Deconsolidation process
    • Calculating the gain on disposal, including tax
    • Tax basis vs. book basis of investment sold
    • Dealing with non-controlling interests
    • Adjusting the capital structure of the business to be divested/restructured
    • Proforma leverage ratios
  • Use of sale proceeds and scenario analysis
    • Operating investments (Capex or business acquisitions)
    • Investments in financial assets
    • Repayment of debt
    • Repurchase of shares
    • Special dividend
    • Proforma EPS analysis, including using relative P / Es

After graduating from Cambridge University in 1993, the trainer worked as an auditor with Arthur Andersen, gaining a comprehensive knowledge of corporate accounting and financial statements. He qualified as a chartered accountant (ACA) and then worked in investment banking in the City of London, initially with HSBC and subsequently at Merrill Lynch. Throughout his time in the City he was in a front-office role, advising companies on valuation, financing, acquisitions, foreign exchange and derivatives. This breadth of practical experience together with his passion for sharing and communicating knowledge, naturally then led him towards a career in financial training.

He has worked in financial training for the last ten years and delivered training courses on accounting, financial modelling, corporate finance, valuation and capital markets at investment banks, private equity and corporate finance firms throughout the world.

This one-day workshop will guide participants through the mechanics of modelling divestiture transactions with the end results which can be used to evaluate deals, both from a sell-side perspective.

Have this course presented In-House

  • On a date, time and in a location of your choice
  • Topics expanded or deleted to your bespoke requirements

Have this course pre-recorded

  • Full course recording edited exclusively for your company
  • Files converted to enable housing on your LMS

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