Training the Street - M&A (Accretion/Dilution) Modeling

Presenter:  Darren Gortz

ATTENDANCE TO BOTH WORKSHOPS (M&A and LBO Financial Modeling) IS MANDATORY AND WILL GIVE YOU 0.5 CREDIT HOURS.  THERE IS NO CREDIT GIVEN FOR ATTENDANCE AT ONE WORKSHOP.

Overview – The first day of this intensive workshop is designed to develop an advanced understanding of merger consequences analyses through actual hands-on construction of an M&A model.  Each participant will build their own interactive M&A model from "scratch" to better understand the dynamics of merger consequences.

The completed products allow for a dynamic evaluation of whether or not a company should acquire a competitor or sell itself (merger consequences analysis).  Specifically, participants will construct and analyze the following:

• Transaction summary detailing sources and uses of funds
• Purchase accounting overview
• Creation of goodwill and write-ups, including possible incremental D&A
• Opening balance sheet and purchase accounting adjustments
• Concept of affordability analysis
• Synergies analysis, including phase-in of projected synergies
• Earning impact, including accretion/(dilution) analysis and synergies required to breakeven
• Credit rating considerations
• M&A transaction consideration (stock vs. cash social issues, etc.)
• Sensitivity analysis (summary pages and data tables)
• Analysis at Various Prices
• Relative PE multiples analyses
• Asset vs. stock purchase (time permitting)