FINANCE OF MERGERS ACQUISITIONS: AN M&A DEAL DESIGN

In financial transaction, Professionals, who work in either investment banking or corporate development, will need to develop an M&A deal process to guide them. This course majors on the theory and practice of mergers and acquisitions (M&A), which centers on the Finance. The mergers and acquisitions (M&A) process has many steps and can take long period to complete.

This course, however, will outline the acquisition process, study the various types of acquisitions strategic M&A, restructuring deals such spinoffs and asset transfers, explore the importance of synergies, private equity leveraged buyouts, financial buys vs. strategic, and determine transaction costs.

Participants will understudy tools from different areas of Finance in view to design successful M&A deals as well as evaluate the value and price M&A deals and how to choose the optimal financing mix for an M&A deal.

Course Objective

At the end of this course, participants will be able to:

• Acquire good knowledge both in theory and practice of financial modeling and capital structure
• Develop good understanding and executing of M&A deals
• Effectively set up all the assumptions and drivers required to build out the M&A model
• Analyze and create a post-transaction balance sheet
• Accomplish sensitivity analysis on key assumptions
• Evaluate the overall effect of the transaction

COURSE OUTLINE

MODULE 1 – M&A MODELING

• Advanced financial models: Types
• Transaction details
• Forms of synergies and consideration
• Accretion and purchase price allocation
• M&A case study

MODULE 2 – M&A MODELING PROCESS

• Overview of M&A process steps
• M&A modeling process
• M&A resources and templates
• Financial buyers vs. Strategic
• M&A model representation
• Model layout and structure Case study

MODULE 3 – ACQUIRER AND TARGET MODELS

• Structure of target and acquirer models
• Mapping
  • Financial statement
  • Income statement
  • Balance sheet
• Comparing acquirer and target statements
• Transaction stub period
  • Stub cash flow
  • Stub income statement
  • Stub balance sheet
  • Stub supporting schedules

MODULE 4 – ASSUMPTIONS IN TRANSACTION

• Overview of assumptions in transaction
• M&A transaction inputs
• Purchase price
• Goodwill and purchase price allocation (PPA)
• Uses and Sources of cash
• Shares outstanding and issued

MODULE 5 – CLOSING BALANCE SHEET

• Introduction to Closing balance sheet
• Target and Acquirer balance sheets
• The Fair value adjustments
• The Other adjustments
• Consolidated pro forma balance sheet

MODULE 6 – PRO FORMA FINANCIAL MODEL

• Pro forma model overview
• Merger integration revenue and expenses
• Combined income statement and balance sheet
• Working capital Changes
• Depreciation schedule
• Debt schedule
• Interest schedule
• Target and acquirer debt
• Completing the cash flow statement
  • Pro forma DCF model setup
  • Pro forma DCF free cash flow
  • Pro forma DCF model NPV

MODULE 7 – ACCRETION & DILUTION ANALYSIS

• The Accretion dilution analysis
• Impact of Earnings per share (EPS)
• The Cash flow per share (CFPS) impact
• Testing scenarios

MODULE 8 – SENSITIVITY ANALYSIS &

• Sensitivity Analysis Overview
• Share Price Impact
• Impact On Capital Structure
• Data Tables For M&A Sensitivity
• Sensitivity Analysis Testing

Who Should Attend?

Financial officers, controllers, accountants, analysts, investors, business development professionals, strategists, bankers, consultants, marketers and corporate managers

Delivery Method: This will include combine lectures, discussions, group exercises, case studies and illustrations. Participants will also understand the theoretical and practical knowledge of the topic.

Venue: Dubai

Duration: 2 week

Course Date: April 1st – 5th 2024