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Training Course Summary:

Participants will learn firstly to model an in-depth, sophisticated model of the major aspects of a merger of two public companies. They will then model a leveraged buy-out with several different layers of financing. Each participant will have his/her own PC and therefore the very latest valuation and modelling techniques in a hands-on, totally practical manner. The trainer will ensure that each participant will finish the case studies not only with a full understanding of the concepts involved but also with fully working, sophisticated models which can be used as the basis for future transactions.
Delegates will be required to bring a laptop with CD-Rom to the seminar.

Training Course Overview/Content:

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
Pooling and purchase accounting
Synergies
Merger modelling techniques

Model Building for a Merger
(participants are provided with an Excel skeleton)
Part A: the inputting of historic and forecast data
Part B: developing comparisons of target and bidder financials
Part C: analysis of EPS, interest cover and other key ratios
Part D: adjustments for synergies and sensitivity tables

Background Issues for Modelling Buy-outs
Case study of Porterbrook - a classic MBO
Different types of transaction - LBOs, MBOs, MBIs
Financing and structuring issues (debt levels, equity options)
The golden rules for evaluating a buy-out candidate
Walk-through of a typical financing structure

Model Building for a Buy-out
(participants are provided with an Excel skeleton)
Part A: modelling the assumptions for the financing structure
Part B: modelling P/L accounts, cashflows and financing flows
Part C: the IRR, adjusting for management incentives and financial
covenants
Part D: changing assumptions and sensitivity tables for different
structures