Financial Modelling for Mergers & Acquisitions Training Course

This advanced training equips participants with the technical and analytical skills to build robust financial models for Mergers and Acquisitions (M&A). The course covers valuation techniques, deal structuring, synergies assessment, and scenario analysis, with a focus on real-world applications. Participants will learn how to evaluate target companies, forecast combined financial performance, and assess the impact of different financing and deal structures on shareholder value.

Target Groups

• Corporate finance professionals and investment bankers.
• Equity analysts and financial consultants.
• Private equity and venture capital professionals.
• CFOs, finance managers, and accountants involved in M&A.
• Professionals seeking careers in investment banking, valuation, or corporate strategy.

Course Objectives

By the end of this training, participants will be able to:

1. Understand the M&A transaction lifecycle and its financial implications.
2. Build dynamic and fully integrated financial models for M&A.
3. Perform valuation using DCF, comparable company, and precedent transactions analysis.
4. Evaluate deal structures and financing alternatives (cash, stock, debt).
5. Analyze and model synergies and their impact on valuation.
6. Conduct accretion/dilution analysis to assess deal impact on EPS.
7. Run sensitivity and scenario analysis for decision-making.
8. Prepare outputs and presentations to support deal negotiations.

Course Modules

Module 1: Introduction to M&A & Financial Modelling

• Overview of M&A landscape and deal types.
• Objectives of M&A transactions.
• Modelling frameworks and Excel best practices.

Module 2: Review of Core Financial Modelling Concepts

• Three-statement model integration (income statement, balance sheet, cash flow).
• Forecasting techniques.
• Key assumptions and drivers in M&A models.

Module 3: Valuation Fundamentals in M&A

• Discounted Cash Flow (DCF) method.
• Trading comparables and precedent transaction analysis.
• Enterprise value vs. equity value.

Module 4: Building a Standalone Model for Target & Acquirer

• Forecasting financials for standalone entities.
• Normalizing earnings and adjustments.
• Establishing key assumptions.

Module 5: Deal Structuring & Financing Options

• Cash, stock, debt, and hybrid financing.
• Impact of leverage on transaction value.
• Consideration of taxes and transaction costs.

Module 6: Synergies & Adjustments

• Revenue synergies vs. cost synergies.
• Incorporating synergies into pro forma models.
• Risks of overestimating synergies.

Module 7: Accretion/Dilution Analysis

• EPS impact of M&A transactions.
• Key metrics and valuation multiples.
• Practical modelling exercises.

Module 8: Sensitivity & Scenario Analysis

• Testing assumptions and stress scenarios.
• Sensitivity tables and tornado charts.
• Assessing downside risk vs. upside potential.

Module 9: Integration & Output Presentation

• Building the combined entity model.
• Preparing pro forma financial statements.
• Creating clear charts and dashboards for presentations.

Module 10: Case Studies & Best Practices

• Real-world M&A financial models.
• Common pitfalls in M&A modelling.
• Best practices for professional deal modelling.