Overview

A complete Mergers and Acquisitions (M&A) model that includes: (1) stand-alone target DCF model, (2) stand-alone acquirer DCF model, (3) pro forma model, (4) synergies, (5) accretion/dilution, (6) sensitivity analysis, (6) transaction structure, (7) form of consideration, (8) sources and uses of cash, (9) operating scenarios, (10) 3 statement models for the target and acquirer, and much more! This merger model was designed by professionals with first-hand experience in investment banking, private equity, and corporate development while working on large-scale M&A transactions.

What this Merger Model includes:
  • Clean and efficient structure for an M&A model
  • All drivers and assumptions required for the M&A model
  • All adjusting accounting entries for a post-transaction balance sheet
  • Integration of acquirer and target models into one pro forma
  • Accretion and dilution analysis of per share numbers
  • Sensitivity analysis of main assumptions and share price
  [caption id="attachment_350" align="alignnone" width="980"]Merger Model M&A Template Excel Example Screenshot of the Balance Sheet from the M&A Model template.[/caption]  

How to Use the Merger Model Template

In order to effectively use this merger model template, you may want to spend some time auditing the formulas and functions to see how all the numbers connect. You can reverse engineer the model by working backward through all the calculations and trying to build sections on your own. Broadly speaking, the steps to build this model are:
  • Building the target and acquirer stand-alone models
  • Re-mapping the models so they are identical and add together
  • Setting out the transactions assumptions
  • Developing operating scenarios
  • Building a "Closing" Balance Sheet with all the adjustments for the transaction
  • Combining the target and acquirer into a pro forma merger model
  • Performing accretion and dilution analysis (of key per share metrics such as EPS)
  • Sensitivity analysis
This model can be useful for beginners who are looking to teach themselves based on an example and also for advanced users who are looking to add more dynamic calculations and enhanced functionality into their models. To learn how to build this merger model from scratch, check out CFI's Mergers and Acquisitions (M&A) Modeling Course.
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Jarinder
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Gerald

Good m&a model, it’s easy to follow and understand how it works compared to most

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