Merger and Acquisition (M&A) Modelling

Training Introduction:

Mergers and Acquisitions (M&A) are high-stakes transactions that require deep financial insight and precise modelling to assess deal feasibility, structure, and value creation. This Merger and Acquisition Modelling course is designed to equip finance professionals, analysts, and corporate deal teams with the technical skills to build, analyze, and interpret complex M&A financial models used in real-world transactions.

The training focuses on both the theoretical foundations and hands-on applications of M&A modelling — including accretion/dilution analysis, pro forma financials, synergies modelling, sensitivity analysis, and deal structuring. Through real-life case studies, Excel-based modelling exercises, and scenario simulations, participants will learn how to build models that support smart, data-driven decision-making in the M&A lifecycle.

 

Course Objectives:

By the end of this training, participants will be able to:

• Build complete M&A models from scratch in Excel
• Evaluate acquisition targets using key financial metrics
• Perform accretion/dilution and synergy analysis
• Structure and finance deals using multiple payment mechanisms
• Model tax implications, goodwill, and purchase price allocations
• Perform scenario and sensitivity analysis for decision support
• Create deal dashboards and output sheets for stakeholders
• Understand the financial impact of different deal strategies

 

Target Audience:

• Investment Banking Analysts and Associates
• Corporate Finance and M&A Teams
• Equity Research Analysts
• Financial Planning and Analysis (FP&A) Professionals
• Valuation and Transaction Advisory Consultants
• Private Equity and Venture Capital Professionals
• MBA and Finance Students seeking technical M&A skills

 

Course Duration:

4 Weeks (Typically 10 full days or adapted for intensive bootcamps)

 

Course Content

Module 1: Introduction to M&A and Deal Types

• Overview of mergers, acquisitions, buyouts, and takeovers
• Types of deals: horizontal, vertical, conglomerate
• Friendly vs. hostile takeovers
• The M&A process and modelling in context

Module 2: M&A Deal Structure Fundamentals

• Cash, stock, and mixed deals
• Share purchase vs. asset purchase
• Deal terms, consideration mix, and transaction costs
• Payment structure impact on valuation

Module 3: Setting Up the M&A Model Framework

• Model design, structure and modular layout
• Input, calculation, and output sheets
• Key assumptions: timeline, purchase price, synergies
• Linking base financials

Module 4: Preparing Standalone Financials for Buyer and Target

• Cleaning and standardizing financial statements
• Normalizing non-recurring items
• Forecasting key line items
• Creating three-statement models for both companies

Module 5: Purchase Price Allocation (PPA)

• Calculating enterprise value and equity value
• Estimating goodwill and intangible assets
• Modelling fair value adjustments
• Accounting for transaction and financing fees

Module 6: Synergy Modelling

• Identifying cost and revenue synergies
• Timing and realization of synergies
• Net synergy impact after implementation costs
• Building synergies into pro forma financials

Module 7: Sources and Uses of Funds

• Creating the sources and uses table
• Equity, debt, and internal cash options
• Modelling financing fees and equity issuance dilution
• Visual representation for deal summary

Module 8: Pro Forma Balance Sheet Modelling

• Consolidating buyer and target balance sheets
• Adjustments for debt, cash, goodwill, and PPA
• Balance sheet post-acquisition structure
• Modelling goodwill impairment (intro level)

Module 9: Pro Forma Income Statement and Cash Flow Statement

• Building the combined pro forma income statement
• Impact of synergies, D&A, and interest expense
• Tax rate modelling and NOLs
• Building the pro forma cash flow statement

Module 10: Accretion/Dilution Analysis

• Understanding EPS impact of the deal
• Building accretion/dilution outputs
• Cash vs. stock deal scenarios
• EPS bridge and illustrative charts

Module 11: Leveraged Buyout (LBO) Considerations in M&A

• Introduction to LBO in M&A context
• Modelling financing structure and leverage ratios
• Exit assumptions and IRR sensitivity
• LBO model comparisons with strategic buyer model

Module 12: Tax and Accounting Considerations

• Effective tax rate modelling
• Deferred taxes and goodwill amortization
• Treatment of NOLs and tax shields
• International tax issues (introductory)

Module 13: Scenario and Sensitivity Analysis

• Modelling sensitivity for key drivers (price, cost, synergies, rates)
• Scenario analysis: base, best, worst case
• Data tables and tornado charts in Excel
• Risk-adjusted decision support

Module 14: Creating Executive Dashboards and Model Outputs

• Building summary outputs for stakeholders
• Key charts: EV breakdown, synergy waterfall, EPS impact
• Dashboarding in Excel for deal summary
• Formatting best practices for board-level presentations

Module 15: Modelling Cross-Border and Complex Deals

• FX modelling and foreign earnings
• Minority interests and non-controlling stakes
• Dual listings and cross-border regulatory issues
• Adjustments for political, legal, and economic risks

Module 16: Final Case Study: Full Deal Model Build

• Participants build a complete M&A model from scratch
• Real-life or simulated company financials
• Apply all modules: valuation, synergies, PPA, pro forma financials
• Present final deal model and recommendation

 

Assessment and Certification:

• Module quizzes and hands-on exercises
• Final exam or practical modelling project
• Peer-reviewed model output or group presentation
• Certificate of Completion for successful participants

 

Delivery Formats:

• Live instructor-led (on-site or virtual) with Excel templates
• Optional pre-recorded modules with hands-on labs
• Real-world case studies from live or historical deals
• Participants must have access to MS Excel (or Google Sheets equivalent)
• Optional post-training support or mentorship for first live deal

 

Pre-requisites:

• Strong working knowledge of financial accounting and Excel
• Basic financial modelling or three-statement model experience preferred