Modeling and Valuing Acquisitions & Divestitures

Course details

In this course you learn about valuation models for acquisitions and divestitures, including the linkage between business plans and valuation. We start with the core determinant of value, the discounted cash flow (DCF) model, and related valuation techniques - Leveraged Buy-out (LBO), Accretion / Dilution Analysis, Return on Invested Capital and Internal Rate of Return, Payback Period - that leverage the tenets of the DCF. You triangulate the conclusions of the DCF-based models with other valuation techniques and financial projection metrics, including Comparable Transaction Analysis and Comparable Company Analysis. 

Further, we examine the critical linkage between the business plan and the valuation model and how your assumptions about the former drive the latter.  Within this section we employ tools used by Wall Street analysts to quickly build scenario analyses. We also explore emerging valuation techniques that will allow you to tailor your investment returns to the capital structure of your particular acquisition.