The Mergers & Acquisition (M&A) Model provides a
projection for a company looking to potential merger or acquire another
company. This model runs through different scenarios and synergies to forecast
future value after the transaction. Included in the template you will find:


A Deal Assumptions Section with key drivers for
the Acquirer and Target company and a 5-scenario analysis

Accretion/Dilution with a Sensitivity Analysis

Proforma Model merging the two companies with
alternative synergy assumptions

Debt & Interest section highlighting the
different debt schedules and repayment

Assumption section for each company with a 3
Scenario analysis

The Income Statement, Balance Sheet and Cash
Flow Statement for the Acquirer and Target companies

Supporting Schedules Section for PPE and Working

Discounted Cash Flows Valuation for each company

On the first tab is the Deal Assumptions sections where the
details of the deal structure are input. There is another section for a
5-scenario analysis for the assumptions of the synergy and financing of the
merger/acquisition. Below this is the calculation of Goodwill for the Closing
Balance sheet at the time of the deal. This is followed by the
Dilution/Accretion analysis regarding stock prices and a sensitivity analysis
using Takeover Premium, Revenue Enhancement and Target Share Price to impact
the change in Share Price and Earnings per Share.

The Proforma for the Merger/Acquisition is on the next tab.
This consists of an Assumptions section that will tie to the debt schedule
below along with a few assumptions for the Income Statement and Balance Sheet.
After the 3 Statement section, there is the debt schedule that outlines each
form of debt and their interest/repayment schedule. At the bottom, there is a
DCF Valuation after the deal and a Merger Integration section, which is
highlighted in green to show that every cell is linked to another tab in the

The next two tabs are for the Acquirer and Target companies
and their financial projections. All assumptions can be modified to fit
specific key drivers of the business to see their impact on the Mergers &
Acquisition Model. Up to years of historical data can be entered into the
income statement, balance sheet, and cash flow statement; the following
projected years are driven by formulas from the Assumptions section according
to the selected scenario in cell I9. The projection period in the Supporting
Schedules section consists of all formulas that are tied to the Assumptions and
3 Statement sections so no editing is necessary. The DCF Valuation section
displays the Terminal Value for each company using the Discounted Cash Flows
Method. This section offers an Intrinsic and Market value and the respective
share price.

All cells in blue font are input cells where custom
information can be entered. All cells in black font are formulas set to
streamline the model. All cells in green font represent a link to another tab
in the model. Sections are grouped to condense the model to view sections

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