Excel Modelling for Corporate Finance Transactions

Course Overview

This course is designed to develop Excel skills and best practice and then apply these techniques to mergers and buyout models.

Firstly, participants will develop and complete an in-depth model of the major aspects of a merger of two companies.

Secondly, they will then model a leveraged buy-out with several different layers of financing. The model will be optimised to ensure that the results meet a number of management tests.

The trainer will ensure that each participant finishes the case studies not only with a understanding of the concepts involved but also with fully working comprehensive models which can be used as the basis for future transactions.

Participants will also acquire a clear understanding of a structured methodology providing a framework for all analytical modelling and have the ability to construct other models using a range of methods for including risk, what-if analysis, optimisation and reporting.

Each participant will be required to bring a laptop running Microsoft Office with CD-Rom to the seminar.

Course Content

Model Design

• Spreadsheet ‘best practice’ design principles
• Advanced Excel methods and techniques
• Common mistakes
• Practical audit principle
• Applied spreadsheet design and key audit principles

Background Issues for Modelling Mergers and Acquisitions

• Introduction to M&A
• Rationale for takeovers
• Options for structuring the consideration
• Financing the cash part of the consideration
• Accounting method
• Inclusion of synergies
• Merger modelling techniques

Model Building for a Merger
(participants are provided with a range of Excel templates)

• Part A: merger financial statements
• Part B: developing sources and uses of finds
• Part C: analysis of EPS, interest cover and other key ratios
• Part D: adjustments for synergies and sensitivities

Background Issues for Modelling Buy-outs

• Model objectives and required outputs
• Different types of transaction – LBOs, MBOs, MBIs
• Financing and structuring issues (debt levels, equity options)
• Typical financing structure
• Key modelling techniques and issues

Model Building for a Buy-out
(participants are provided with a range of Excel templates)

• Part A: setting out the assumptions for the financing structure
• Part B: modelling cash flows and financing flows
• Part C: cost of capital and terminal value
• Part D: initial results (NPV, IRR, gearing, exit values)
• Part E: changing assumptions and optimising the outputs using management tests
• Part F: producing management reports and charts

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.