All in One Financial Model – DCF, M&A and LBO

About this All in one Financial Model - DCF, LBO and M&A

This all in one advanced valuation financial model analyzes a merger. The model integrates both DCF and LBO into the analysis.

This is an advanced model for experienced finance professionals who are looking for an extensive analysis of a merger. Each part of the deal will be first analyzed individually for granular and thorough analysis.

The template starts with an acquirer standalone model which contains the following:

• Model of Acquirer Income Statement – Breakdown of Historicals, Non-Recurring Items, EBITDA Reconciliation
• Model of Acquirer Balance Sheet – Breakdown of Historicals, Capitalization and Leverage Ratios
• Historical Working Capital Ratios
• Model of Cash Flow Statement
• Model of Working Capital
• Summary of Acquirer Financials
• Summary Historical and Projected Financial Performance and the Free Cash Flow Calculation
• Acquirer Capitalization Summary
• Discounted Cash Flow Analysis of the Acquirer

Following that is the target standalone model which contains the following:

• Model of Target Income Statement – Breakdown of Historicals, Non-Recurring Items, EBITDA Reconciliation
• Model of Target Balance Sheet – Breakdown of Historicals, Capitalization and Leverage Ratios
• Historical Working Capital Ratios
• Model of Cash Flow Statement
• Model of Working Capital
• Summary of Target Financials
• Summary Historical and Projected Financial Performance of the Target company and the Free Cash Flow Calculation
• Target Capitalization Summary
• Discounted Cash Flow Analysis of the Target

After completing the standalone models the next sections contain projections for both the acquirer and target companies. A Leveraged Buyout Model (LBO) with an IRR sensitivity analysis then follows.

Lastly, the template combines data from all the previous models to create a pro forma combined merger model.  Accretion/Dilution sensitivity analysis and synergy sensitivity are then performed to further support the analysis.

This is a very extensive and thorough analysis and should be used by senior finance professionals who have experience with M&A models.