Last Update: 1/2022
Duration: 3h 6m | Video: .MP4, 1280×720 30 fps | Audio: AAC, 48 kHz, 2ch | Size: 1.67 GB
Genre: eLearning | Language: English
Through these tutorials we are going to learn merger modeling concepts with the help of case studies.
What you’ll learn:
Analyze a live merger deal and how was the target valued (EV and EV / EBITDA multiples)
Prepare pro forma 3 statements for the acquirer in the year the deal was completed
Learn Valuation
Learn Pro forma adjustments
Requirements
Basic Accounting and MS Excel Knowledge
Passion to learn
Description
In this course, we will first understand about the various terminologies being used in merger modeling. Post which, we will go through with the detailed merger model, wherein we will learn, how to create assumption sheet, calculation of the purchase price. Further, we will also understand the how the merger deal would be funded. There are various expenses such as the financing expenses, advisory fees, purchase price allocation that would be calculated with specific to the deal. Next comes the main part of M& A modeling where we would be creating the proforma balance sheet and P&L, accretion/dilution analysis and preparing the sensitivity tables. Through these tutorials we are going to learn merger modeling concepts with the help of case studies. The training will include the following;
Analyze a live merger deal and how was the target valued (EV and EV / EBITDA multiples)
Prepare pro forma 3 statements for the acquirer in the year the deal was completed
Valuation
Pro forma adjustments
What is a Merger?
In legal terms, a merger is a consolidation of two business entities into one single entity. A merger may also have been placing one parties or organizations business under the ownership of the other party or organization. A merger of equals is when the CEOs of both the companies feel and agree that joining the organizations and the companies is in the interest of both the firms. A merger gives the organization the following advantages.
The merger makes the organization large with a various marketing resources increases financing capabilities more products to market and sell increasing their market value and competing for strength in the market.
Reduces cost by merging similar operational units such as HR, marketing administrative functions, and other functions that have a better value with low-cost post combination. If the companies have similar productions lines even their production areas can be combined for reducing operational cost.
Combining the entities reduces one of their competitors. Now that two entities have combined they have one less competitor in the market.
Synergy in operations is obtained where either low cost or higher profit ratios are expected by adding the financials of the companies.
What is an Acquisition?
The acquisition takes place when one organization or business entity takes the ownership of the assets, equity interest and equity stocks of the other entity or business unit. However, in both the cases the assets and liabilities of two entities are combined into one; and in the case of an accusation, each party’s partial equity ownership is given to the other along with the control of the entire enterprise. A merger is a deal which is friendlier than the acquisitions as it is in the interest of both the parties whereas an acquisition is more unfriendly especially when the management of the target company will oppose the deal.
An acquisition can be done in order to purchase a product that is less expensive to purchase than to manufacture or build. A number of software companies usually purchase products of smaller companies that offer an expansion to their product line. And when they become popular amongst the buyers then they increase the functionality of the product.
Acquisitions can increase the size of an organization. A company that is larger has more visibility in the market it has more access to credit and other resources.
This activity can also give you control over critical resources such as the acquisition of a gold mine by a jewelry company in order to get gold without market price fluctuations.
Who this course is for
Students who are pursuing CFA, MBA (finance), CA
Professionals in the field of investment banking/equity research
Homepage
https://www.udemy.com/course/mergers-acquisitions-ma-modeling/
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