Modelling for Mergers & Acquisitions

M&A Analysis and Modelling

• Participants attending this M&A Modelling course will 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 in M&A modelling 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

Sessions cover 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, as covered in our M&A financial modelling course

• Modelling fees (advisory, debt-issuance and equity-issuance)

• Consolidating the financial statements of the acquirer and the target

• Synergies

• 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

Training Objectives

At Redcliffe Training, our M&A modelling course equips participants with the skills to analyse transactions from both strategic and technical perspectives. Sessions cover key modelling techniques essential for real-world M&A execution.

Gain the practical skills needed to build robust M&A financial models used to evaluate acquisition opportunities and support transaction decision-making. Training progresses from standard acquisition models to fully integrated three-statement models, providing a solid foundation in transaction analysis and M&A modelling.

• 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

Training Course Summary

Redcliffe’s M&A modelling course offers participants a comprehensive, hands-on introduction to the mechanics of modelling for mergers and acquisitions. Professionals learn how to construct and interpret valuation models, enabling the assessment of deal structures, evaluation of synergies and analysis of 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.