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.


Monday 4th March 2024

Digital, Asia-Pacific

Monday 11th March 2024

Sydney, Asia-Pacific

Monday 15th April 2024

London, Europe, Middle East, Africa

Wednesday 15th May 2024

Singapore, Asia-Pacific

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 our Financial Modelling Methodology
  • Discuss and identify good vs. bad modelling techniques using real-life examples
  • Reinforce consistency in calculation technique and presentation

Discuss the lifecycle of a model, from screening and structuring to exit strategies

  • 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

  • Review the case study and discuss the approach to develop the target companies operational cashflows
  • 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 the acquisition capital structure with the appropriate adjustments for the target companies balance sheet
  • Integrate acquisition debt facility and size the debt based on flexible gearing input
  • Build in schedule of forecast interest margins
  • Calculate key debt metrics, including DSCR and Senior Debt / EBITDA and built in signal checks of test against covenant ratios

Learn a structured approach to PP&E forecasts and deprecation 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

  • Put together three-way financial statements and understand the core accounting concepts that ensure we have a balancing balance sheet
  • Learn how to continuously test and debug the integrated statements
  • Understand how a well-built cashflow waterfall will avoid circularities when creating complex financial models

Build and analyse returns and exit strategies through the powerful scenario manager

  • Save critical time and deliver rapid analysis using our approach to scenario management
  • Integrate internal rate of returns and NPV, understand the role of the discount rate
  • Learn differences between NPV and XNPV functions and common errors in their application
  • Review exit strategies through flexing key variables, such as exit date and exit multiple
  • Produce data tables to provide meaningful analysis to present to key stakeholders

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