Dates                                                                
 
13-15 October 2008
16-18 March 2009
27-29 July 2009
12-14 October 2009  

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