Modelling for Mergers & Acquisitions

M&A Analysis and Modelling

M&A modelling participants build a fully integrated merger financial model combining financial statement forecasts for the acquirer and target company. Practical consolidation issues are addressed. Deal synergy analysis focuses on the financing structure, pricing, earnings and credit impact of the deal. The three main ways of determining value creation for acquirer shareholders are emphasised, namely EPS (Earnings per share) accretion/ (dilution), Return on Invested Capital and PV of M&A Synergies vs. Bid Premium paid.

As an M&A case study, we will consider the hypothetical acquisition model of Adidas by Nike, building both ‘short-form’ and long-form’ models.

Individual exercises will be undertaken to highlight the 3 key measures of value creation:

• EPS accretion/ (dilution)
• Return on Invested Capital
• Present Value of deal synergies vs. premium acquisition model paid to target shareholders 

 Key Topics:

• M&A Accounting for Deal Goodwill
• Preparing the stand-alone data for the acquirer and the target
• Preparing key deal data is a focus in this M&A financial modelling course
• Building a flexible funding structure using sources and uses of funds table
• Calculating deal goodwill
• Accounting for a Non-Controlling Interest
• Enterprise Value to Equity Value bridge and deal adjustments in private M&A
• Dealing with fair value adjustments to the target's net assets
• Dealing with the refinancing of the target's debt
• Modelling fees (advisory, debt-issuance and equity-issuance)
• Consolidating the financial statements of the acquirer and the target
• Synergies
• Assessing the M&A valuation creation potential of the deal using: 
  • Earnings accretion/dilution and relative P / E analysis
  • Return on invested capital (ROIC) analysis
  • Net present value of synergies vs. control premium
• Contribution analysis M&A
• Impact on credit ratios and ratings
• Analysis at various prices (AVP)
• Apply valuation models for mergers and acquisitions to identify the maximum offer price and determine an appropriate mix within a project finance model

M&A Modelling is delivered by a 1993 Cambridge University graduate. He began his career as an auditor at Arthur Andersen, where he gained 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, our specialist worked a front-office role, advising companies on valuation, financing, acquisitions, foreign exchange and derivatives. His broad practical experience, combined with a passion for sharing knowledge, led him into financial training, particularly in the application of valuation models for mergers and acquisitions.

For the past decade, he has specialised in financial training, delivering a wide range of courses to global audiences. His programmes have covered accounting, financial modelling, corporate finance, valuation, and capital markets. They have been delivered to professionals at investment banks, private equity firms, and corporate finance institutions around the world.

Redcliffe’s M&A modeling course will equip you with the skills required to analyse transactions from both a strategic and technical perspective. The course covers key modelling techniques essential for real-world M&A execution.

• Learn how to build a standard M&A model, which analyses all the key financial issues on an M&A transaction (sufficient for pitch purposes).
• Determine how to build a fully integrated M&A model, combining acquirer and target financials into a 3-statement consolidation.

• This M&A modelling course offers hands-on experience via the use of practical examples and illustrations in Excel exercises and case studies.
• Redcliffe’s expert trainer has qualified as a Chartered Accountant and is well qualified to understand both the accounting and financial aspects of the workshop.
• The trainer has spent time developing financial models that capture the impact of a wide range of transaction types on financial performance and structure.

This M&A financial modelling course is a ‘must know’ for:

• Corporate Financial professionals at all levels, with limited experience in M&A modelling.
• M&A professionals who seek to identify and quantify value creation for their clients through the use of an M&A model.
• This course is ideal for financial analysts seeking to refresh and enhance their skills in merger and acquisition financial modelling. It also provides a deeper understanding of how acquisitions impact a client’s financial statements and the related accounting implications.

Our one-day Modelling for M&A course provides a comprehensive, hands-on introduction to the mechanics of modelling mergers and acquisitions.

Participants will learn how to construct and interpret valuation models for mergers and acquisitions, enabling them to assess deal structures, evaluate synergies, and analyse the financial impact of a proposed transaction from the buy-side perspective. The course is designed to build confidence in applying these models in real-world deal scenarios.