Mergers and Acquisitions Week - Mergers and Acquisitions Financial Modeling (San Francisco)

Course details

Financial modeling is one of the most important aspects in any mergers and acquisitions. It is often thecentrepiece of the entire M&A process that drives the overall valuation and sets the financial expectations in your acquisitions. Recent M&A research by Harvard suggest that 70% to 90% of acquisitions fail to meet the financial expectations of the acquirer because too often, company pay the wrong price in their acquisitions.

In this three-day intensive program on Mergers and Acquisitions Financial Modeling, you will learn how toconstruct a full merger model that incorporates sophisticated M&A concepts. With hands-on and interactive exercises, you will learn how to establish the right valuation benchmark for your acquisition, model the financial impact of your transaction – including earnings, synergies and cash flow analysis and review how to handle different acquisition financing features. In addition to equipping you with financial modeling skills, this program will explore the concepts on deal structuring, deal structures and sophisticated concepts on synergies by using largely successful synergies templates used by MNCs

Led by a faculty director who has successfully led over of deal transaction, Thomas Kessler’s M&A transactions has been featured by Harvard Business School as HBS case study. You will also be exposed to group discussions and engage in live case studies with other financial leaders and you will have the opportunity establish a network with other financial leaders like yourself across multiple industries and countries.

What You Can Expect

• Structuring the Deal -Understand how to structure an M&A deal and set up your financial model to take into account different deal structures
• Valuation -Model the value of your target utilizing different valuation methods and set the right purchase price for the acquisition
• Synergy Analysis -Value the synergies derived from the acquisition
• Financial Impact of Acquisition -Model the financial impact of your transaction, including EPS accretion/dilution, contribution analysis, pro-forma financial statements and other financial consequences
• Financing the Acquisition -Build a flexible funding structure and derive the cash flow required to finance the acquisition
• Financial Forecasting -Forecast the financials of the combined entity, understand credit issues and leverage ratios
• Strategic Planning -Perform sensitivity and scenario analysis

Who Will Benefit Most

This highly interactive program is designed for all C-level and senior level executives (SVP, VP, MD, Director, Head) who are involved in M&A or who are in these roles or related ones: CFO, Finance, Financial Controller, Banking, Treasury, Accounting, Strategic Planning / Management, Corporate Planning / Strategy, Group Strategy, Business Planning / Analysis / Development, Private Equity / Venture Capital, Investor / Investing, Valuation

Program Outline

Day 1 - Morning

• RATIONALE FOR MERGERS & ACQUISITIONS
• MERGERS & ACQUISITION VS. STRATEGIC ALLIANCES
• CURRENT TRENDS IN M&A
• INTRODUCTION OF THE M&A LIFE-CYCLE

DEAL STRUCTURE

• THE DEAL STRUCTURING PROCESS
• DEAL STRUCTURES: ACQUISITIONS, MERGERS, JOINT VENTURES, SPIN-OFFS, SPLIT-OFFS, CARVE-OUTS AND DIVESTITURES, TARGET STOCK
• MERGERS & ACQUISITIONS MODELING – P&L, Initial valuation, synergies
• INTRODUCTION
• COMPLETING CORE FINANCIAL AND OPERATIONAL ANALYSIS ON A TARGET BUSINESS

Day 1 - Afternoon

• IDENTIFY THE KEY COMPONENTS OF THE PURCHASE PRICE FORMULA
• THE DIFFERENT APPROACHES USED FOR VALUATION AND THEIR DIFFERENCES
• MODELING THE INITIAL VALUE OF THE TARGET VALUATION

SYNERGIES

• ANALYZING TRANSACTION SYNERGIES AND RISKS
• APPLY THE SYNERGY CONCEPT IN OUR CASE

Day 2 - Morning

MERGERS & ACQUISITIONS MODELING – CASH FLOW AND B/S STEPS

• COMPLETING CORE WORKING CAPITAL ANALYSIS ON A TARGET BUSINESS
• COMPLETING CORE FINANCIAL AND OPERATIONAL ANALYSIS ON THE BALANCE SHEET OF A TARGET BUSINESS

​MERGERS & ACQUISITIONS MODELING – CASH FLOW AND B/S STEPS

• COMPLETING CORE CASH FLOW ANALYSIS ON A TARGET BUSINESS

MERGERS & ACQUISITIONS MODELING – PRICING, FINANCING

Day 2 - Afternoon

MERGERS & ACQUISITIONS MODELING – PRICING, FINANCING

• DELEGATES WILL REVIEW THE MOST IMPORTANT CONCEPTS THAT INFLUENCE PRICING AND FINANCING OF A TRANSACTION
• FUNDAMENTALS OF CAPITAL STRUCTURE
• FINANCING VEHICLES / ALTERNATIVES
• LINKING DEAL STRUCTURES TO FINANCING STRUCTURES

MERGERS & ACQUISITIONS MODELING – PRICING, FINANCING

Day 3 - Morning

• MERGERS & ACQUISITIONS MODELING – PPA
• TAX CONSIDERATIONS
• MERGERS & ACQUISITIONS MODELING – PPA

Day 3 - Afternoon

• MERGERS & ACQUISITIONS MODELING – TRANSACTION FINANCIALS
• TRANSACTION FINANCIALS
• MERGERS & ACQUISITIONS MODELING – TRANSACTION FINANCIALS