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 a 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.