Financial Modelling for Acquisition Transactions

2 Day Duration

A comprehensive financial model for acquisitions provides deep insights for investors and financiers that need to assess the risk and opportunities relating to the proposed transaction. This course is designed to enable you to master financial modelling for Acquisition transactions, allowing you to effectively assess risk. By mastering these skills, you will be prepared for the most challenging situations with flexible techniques using a range of examples and a sound understanding of the theory.

Training course with practical financial modelling solutions for acquisitions

In a combined seminar and practical workshop environment, you will learn hands-on solutions to practical modelling challenges. You will learn how to work with subordinated debt and private equity, in real life acquisition scenarios. This course will allow you to build a comprehensive model with powerful analytical outputs tailored for investment banks, private equity and corporate finance executives.

The course will enable you to:

  • Adopt a systematic approach to debt modelling in an acquisition transaction environment
  • Develop an evaluation framework of how commercial negotiation drive valuation and investment ratios
  • Build flexible modules in your financial model which allow deep analysis of how key drivers impact the decision criteria of an acquisition transaction
  • Effectively analyse investment returns for management, sponsors and debt financiers in various operating scenarios

Do you work with acquisition transaction financial models?

If your work involves developing, amending or reviewing financial models for acquisition transactions, this course is for you. This hands-on course is tailored to private equity, corporate finance professionals and investment analysts.


Wednesday 28th of October 2020

Asia Pacific, Digital classroom - APAC

Monday 23rd of November 2020

Asia Pacific, Digital classroom - APAC

Tuesday 8th of December 2020

EMEA, Digital classroom - EMEA

Course Agenda

Master proven techniques for best practice modelling resulting in better models built faster

  • Learn to work with the powerful and easy to follow Corality Modelling Methodology
  • Discuss and identify good vs. bad modelling techniques using real-life examples
  • Greatly increase consistency amongst your team in calculation technique and presentation

Discuss the life-cycle of a model, from screening and structuring to financial close

  • Set flexible timing architecture
  • Learn how to use binary flags to simplify model structure and formulae
  • Set design flow of the model

Develop high level operations forecasts in a best practice way

  • Demand calculations with multi-path optionality on time-series schedules
  • Revenue build up with detailed pricing controls
  • Operational expenditure including fixed and variable items
  • Capital expenditure breakdown

Build working capital forecast and integrate it into a developed model

  • Model debtor and creditor accounts
  • Discuss common errors and pitfalls

Integrate acquisition debt facility

  • Build in an acquisition debt facility sized based on the maximum net leverage ratio test and EBITDA forecast
  • Build in a ratchet control schedule of forecast interest margins
  • Model different ways to repay principal including a cash sweep
  • Calculate key debt metrics, including DSCR, ICR, Senior Debt / EBITDA and built in signal checks of test against covenant ratios

Learn a structured approach to PP&E forecasts and depreciation calculations

  • Remove the need for cumbersome tables
  • Incorporate switches for multiple depreciation methods
  • Easily replicate calculations for accounting and tax depreciation

Understand how financial statements are constructed and how to identify common problems

  • Model income tax and integrate an accumulated losses account
  • Focus on how to calculate Cash Flow Available for Debt Service
  • Put together three-way financial statements (including a cashflow waterfall)
  • Learn how to continuously test and debug the integrated statements

Build a powerful scenario manager

  • Save critical time and deliver rapid analysis using our approach to scenario management
  • Transform scenarios into yet another way to test the model in all scenarios all of the time
  • Build confidence in your analysis through pre-programmed combinations of model inputs

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