Modelling for Mergers & Acquisitions

M&A Analysis and Modelling

Participants attending this M&A Modelling course 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.

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

Individual exercises 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

Redcliffe's M&A Financial Modelling course covers the following key points:

• M&A Accounting for Deal Goodwill
• Preparing the stand-alone data for the acquirer and the target
• Preparing key deal data
• Building a flexible funding structure using the 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
• This M&A modelling course allows participants to assess 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

This M&A Financial Modelling course is delivered at Redcliffe Training 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 to financial training, particularly in 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 globally.

At Redcliffe Training, our M&A modelling course will equip you with the skills required to analyse transactions from both a strategic and technical perspective. Sessions cover key modelling techniques essential for real-world M&A execution.

• Learn how to build a standard M&A model to analyse all 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 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 M&A financial modelling skills. It also provides a deeper understanding of how acquisitions impact a client’s financial statements and the related accounting implications.

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

You will learn how to construct and interpret valuation models, enabling you to assess deal structures, evaluate synergies, and analyse the financial impact of a proposed transaction from the buy-side perspective. Sessions are designed to build confidence in applying these models in real-world deal scenarios.