PLEASE CIRCULATE TO: EUROMONEY TRAINING
Financial Modeling for Mergers & Acquisitions
COURSE SUMMARY
Financial modeling for mergers and acquisitions is an intensive
hands-on course in which attendees receive comprehensive
instruction on modeling economic, financial and strategic
issues associated with mergers and acquisitions. After
describing general issues in mergers and acquisitions, the
course covers programming and model structuring where
attendees follow the lead of the instructor in building their
own model. As the course progresses, attendees perform
more work on an independent basis using two comprehensive
case studies.
Attendees will build a complete financial model in the context
of M&A. To demonstrate various financial and modeling
concepts, participants will also complete focused computer
exercises. In addition to building their own models, the
course will cover how to use fully developed models that
incorporate sophisticated M&A concepts. By the end of the
course, participants will be able to program and apply
simulation, real options and tornado diagrams in the
models they have developed on their own.
In the process of learning how to develop models for M&A
analysis, the course addresses a wide variety of programming,
financial, statistical and economic issues. Financial issues
include valuation analysis, the theory of synergies, the currency
used in a transaction and accounting for transactions and
credit analysis of leveraged buyouts. Statistical concepts
addressed in the course include measurement of volatility,
mean reversion and boundary conditions associated with
economic time series. The programming issues include
designing macros relevant for project finance models, auditing
financial models, circularity associated with interest during
construction, modeling of debt service reserves and organizing
financial models for effective presentations.
RESOURCES RECEIVED BY PARTICIPANTS
Other than the most important item – knowledge of how to
build, use and analyze financial models in an M&A context –
participants in the course will receive many other resources.
Participants will be provided with the following software:
• Basic corporate model with macros and instructions to
create comprehensive analysis;
• Fully developed financial models with debt structuring,
debt sizing, contract pricing and sensitivity analysis;
• Time series software that incorporates volatility, mean
reversion and other parameters into models;
• Monte Carlo simulation software that combines times
series analysis with financial modeling;
• Software that computes implied volatility and option
pricing using the Black Scholes model;
• Yield spread models that compute required yield spreads
on project finance debt form time series analysis;
• Corporate modeling software that extends project finance
models to evaluate valuation of entire corporations;
@ www.euromoneytraining.com/americas
Visit our website
Financial Modeling for Mergers & Acquisitions Analysts
Strategic M&A departments
......................................................................................................
Focused Financial Training for Professionals by Professionals
M&A Consultants
Investment Bankers
• Forward pricing software that projects prices from Finance Directors
marginal cost analysis;
FINANCIAL
CFO’s
• A variety of macro exercises that compute debt capacity, Training Managers
resolve circularity, develop tornado diagrams and Please send me information on:
construct vintage depreciation. Financial Modeling in Excel
MODELING FOR
Participants will also be provided with extensive data bases Structured Finance Modeling
on actual projects, commodity price history and case studies.
Private Equity & LBO Modeling
Finally, participants will receive a manuscript from the book
Valuation and Forward Pricing of Capital Intensive Investments. Mergers & Acquisitions
MERGERS &
COURSE OUTLINE
Financial modeling for M&A is designed as a four day
course. For purposes of the outline, each of the four days
is divided into two modules, resulting in a total of eight
modules for the entire course. ACQUISITIONS
The outline below presents teaching objectives, lectures and
case work in each of the different modules.
COURSE DIRECTOR November 4-7, 2008
Edward Bodmer has created innovative forward pricing,
productivity measurement and investment valuation software May 12-15, 2009
for consulting clients throughout the United States, taught
energy economics and finance throughout the world, and
New York City
Return the registration form below
formulated significant government policy and corporate
strategy in the U.S. Mr. Bodmer’s consulting clients include Registration Form REGISTRATION INFORMATION:
investment banks, commercial banks, research institutions MAIL: Course Administrator
PLEASE USE BLOCK PRINT-PHOTOCOPY FOR MULTIPLE BOOKINGS Euromoney Training
and government agencies on a wide variety of complex
Mr. Mrs. Ms. Dr. Prof. 225 Park Avenue South, 8th Floor
valuation and advisory matters. New York, NY 10003-1604 USA
He has constructed a unique framework for electricity price (Surname) (Given Name) Call: (212) 361-3299 A 4-day computer based program with case studies and
Fax: (212) 361-3499
forecasting and valuation using production cost modeling Job Title E-mail: registration@euromoneyny.com workshop sessions featuring:
techniques combined with option price theory and Monte Web: www.euromoneytraining.com/americas
Carlo simulation. Mr. Bodmer is also an adjunct professor at Department Course Venue and Accommodation: M&A and Structure of Financial Models
Lewis University where he teaches courses in microeconomics. For details of course venue, please contact Euromoney at 1-212-361-3299
Company/Organization Fee: The registration fee covers seminar materials, refreshments, and
Along with his practical experience that covers a multitude lunch. Fee must be paid 21 working days in advance by cash, company Standalone Valuation in a Merger Transaction
check (U.S. dollars), VISA, MasterCard, or American Express. Seat is
of major advisory projects, he has taught specialized courses E-Mail (Required) confirmed only upon receipt of payment
in financial modeling, electricity pricing, option valuation, Team Discounts: When two people from the same organization register, Risk Assessment and Cost of Capital
Address Mail Stop/Floor each gets a discount of 5%. Registrations must be made at the same time
mergers and acquisitions and contracting to investment and paid for together and may not be combined with any other discount.
banks, commercial banks, industrial corporations and Cancellations: A full refund less an administration fee of $150 will be Synergy Analysis
City State/Province Zip + 4/Mail Code given for cancellations up to 21 days before the event. Cancellations must
electric utility companies. be made in writing (letter or fax) and reach this office before the 21 day
Phone Fax
deadline. Delegates who cancel less than 21 days before the event, or who Leveraged Buy-outs
don’t attend, are liable to pay the full course fee and no refunds can be
Mr. Bodmer was formerly Vice President at the First National given. However, if you wish to attend the next course, and you have paid
Bank of Chicago where he directed analysis of energy loans Approving Manager Job Title your course fee in full, you will only be invoiced for 25% of that course Accounting and Financing Structures in M&A
fee. Please note that the next course must take place within 6 months of
and also created financial modeling techniques used in Please register me for the following seminar: the initial application. Of course, a replacement is always welcome. For
advisory projects. He has used the models in providing November 4-7, 2008, New York City (UF1860)
more information regarding administrative policies, please contact our
office at (212) 361-3299.
Technical Project Finance Modeling Issues
expert testimony on subjects ranging from capital structure May 12-15, 2009, New York City (UF1944) Schedule Changes: Euromoney may occasionally find it necessary to
to investments in multi-billion dollar nuclear plants to reschedule or cancel sessions and will give registrants advance notice of
Fee: $5,225 such changes. Euromoney Training will not accept liability for costs
complex valuation of new investments. Check enclosed: Payable to: Euromoney Training, Inc. Checks must be drawn on a incurred by participants or their organizations for the cancellation of
US bank. Please write attendee(s) name on the face and reference UF1860 or UF1944. travel arrangements and/or accommodation reservations as a result of
the course being cancelled or postponed. We therefore recommend that
Mr. Bodmer received an MBA degree specializing in Charge to my: VISA MasterCard AMEX Wire Transfer delegates take out travel insurance.
econometrics from the University of Chicago and a BS Confidentiality: The information you provide will be safeguarded by INFORMATION HOTLINE:
degree in finance from the University of Illinois. He has the Euromoney Institutional Investor PLC group, whose subsidiaries may
use it to keep you informed of relevant products and services. As an Tel: (212) 361-3299
written many articles and is in the process of completing Account # Expiration Date international group, we may transfer your data on a global basis for the
purposes indicated above.
a textbook on valuation of electricity assets. If you object to contact by: telephone fax email please tick the Fax: (212) 361-3499
Signature Cardholder ’s Name
appropriate box. We occasionally allow reputable companies outside the
email: info@euromoneyny.com
A confirmation will be sent to you promptly upon receipt of your registration. If you do not receive Euromoney Institutional Investor PLC group to contact you with details
confirmation from us within 3 business days of sending your registration, please contact us directly of products that may be of interest to you.
Web: www.euromoneytraining.com/americas
at (212) 361-3299 or registration@euromoneyny.com. If you do not want us to share your information with other reputable
Please make corrections to my mailing label. companies, please tick this box.
Contents of this brochure copyright © 2008 Euromoney Training, Inc. All rights reserved. Printed in U.S.A. www.euromoneytraining.com/americas

Financial Modeling for Mergers & Acquisitions
COURSE SUMMARY
Financial modeling for mergers and acquisitions is an intensive
hands-on course in which attendees receive comprehensive
instruction on modeling economic, financial and strategic
issues associated with mergers and acquisitions. After
describing general issues in mergers and acquisitions, the
course covers programming and model structuring where
attendees follow the lead of the instructor in building their
own model. As the course progresses, attendees perform
more work on an independent basis using two comprehensive
case studies.
Attendees will build a complete financial model in the context
of M&A. To demonstrate various financial and modeling
concepts, participants will also complete focused computer
exercises. In addition to building their own models, the
course will cover how to use fully developed models that
incorporate sophisticated M&A concepts. By the end of the
course, participants will be able to program and apply
simulation, real options and tornado diagrams in the
models they have developed on their own.
In the process of learning how to develop models for M&A
analysis, the course addresses a wide variety of programming,
financial, statistical and economic issues. Financial issues
include valuation analysis, the theory of synergies, the currency
used in a transaction and accounting for transactions and
credit analysis of leveraged buyouts. Statistical concepts
addressed in the course include measurement of volatility,
mean reversion and boundary conditions associated with
economic time series. The programming issues include
designing macros relevant for project finance models, auditing
financial models, circularity associated with interest during
construction, modeling of debt service reserves and organizing
financial models for effective presentations.
RESOURCES RECEIVED BY PARTICIPANTS
Other than the most important item – knowledge of how to
build, use and analyze financial models in an M&A context –
participants in the course will receive many other resources.
Participants will be provided with the following software:
• Basic corporate model with macros and instructions to
create comprehensive analysis;
• Fully developed financial models with debt structuring,
debt sizing, contract pricing and sensitivity analysis;
• Time series software that incorporates volatility, mean
reversion and other parameters into models;
• Monte Carlo simulation software that combines times
series analysis with financial modeling;
• Software that computes implied volatility and option
pricing using the Black Scholes model;
• Yield spread models that compute required yield spreads
on project finance debt form time series analysis;
• Corporate modeling software that extends project finance
models to evaluate valuation of entire corporations;
@ www.euromoneytraining.com/americas
Visit our website
PLEASE CIRCULATE TO: EUROMONEY TRAINING
Financial Modeling for Mergers & Acquisitions Analysts
Strategic M&A departments
......................................................................................................
Focused Financial Training for Professionals by Professionals
M&A Consultants
Investment Bankers
• Forward pricing software that projects prices from Finance Directors
marginal cost analysis;
FINANCIAL
CFO’s
• A variety of macro exercises that compute debt capacity, Training Managers
resolve circularity, develop tornado diagrams and Please send me information on:
construct vintage depreciation. Financial Modeling in Excel
MODELING FOR
Participants will also be provided with extensive data bases Structured Finance Modeling
on actual projects, commodity price history and case studies.
Private Equity & LBO Modeling
Finally, participants will receive a manuscript from the book
Valuation and Forward Pricing of Capital Intensive Investments. Mergers & Acquisitions
MERGERS &
COURSE OUTLINE
Financial modeling for M&A is designed as a four day
course. For purposes of the outline, each of the four days
is divided into two modules, resulting in a total of eight
modules for the entire course. ACQUISITIONS
The outline below presents teaching objectives, lectures and
case work in each of the different modules.
COURSE DIRECTOR November 4-7, 2008
Edward Bodmer has created innovative forward pricing,
productivity measurement and investment valuation software May 12-15, 2009
for consulting clients throughout the United States, taught
energy economics and finance throughout the world, and
New York City
Return the registration form below
formulated significant government policy and corporate
strategy in the U.S. Mr. Bodmer’s consulting clients include Registration Form REGISTRATION INFORMATION:
investment banks, commercial banks, research institutions MAIL: Course Administrator
PLEASE USE BLOCK PRINT-PHOTOCOPY FOR MULTIPLE BOOKINGS Euromoney Training
and government agencies on a wide variety of complex
Mr. Mrs. Ms. Dr. Prof. 225 Park Avenue South, 8th Floor
valuation and advisory matters. New York, NY 10003-1604 USA
He has constructed a unique framework for electricity price (Surname) (Given Name) Call: (212) 361-3299 A 4-day computer based program with case studies and
Fax: (212) 361-3499
forecasting and valuation using production cost modeling Job Title E-mail: registration@euromoneyny.com workshop sessions featuring:
techniques combined with option price theory and Monte Web: www.euromoneytraining.com/americas
Carlo simulation. Mr. Bodmer is also an adjunct professor at Department Course Venue and Accommodation: M&A and Structure of Financial Models
Lewis University where he teaches courses in microeconomics. For details of course venue, please contact Euromoney at 1-212-361-3299
Company/Organization Fee: The registration fee covers seminar materials, refreshments, and
Along with his practical experience that covers a multitude lunch. Fee must be paid 21 working days in advance by cash, company Standalone Valuation in a Merger Transaction
check (U.S. dollars), VISA, MasterCard, or American Express. Seat is
of major advisory projects, he has taught specialized courses E-Mail (Required) confirmed only upon receipt of payment
in financial modeling, electricity pricing, option valuation, Team Discounts: When two people from the same organization register, Risk Assessment and Cost of Capital
Address Mail Stop/Floor each gets a discount of 5%. Registrations must be made at the same time
mergers and acquisitions and contracting to investment and paid for together and may not be combined with any other discount.
banks, commercial banks, industrial corporations and Cancellations: A full refund less an administration fee of $150 will be Synergy Analysis
City State/Province Zip + 4/Mail Code given for cancellations up to 21 days before the event. Cancellations must
electric utility companies. be made in writing (letter or fax) and reach this office before the 21 day
Phone Fax
deadline. Delegates who cancel less than 21 days before the event, or who Leveraged Buy-outs
don’t attend, are liable to pay the full course fee and no refunds can be
Mr. Bodmer was formerly Vice President at the First National given. However, if you wish to attend the next course, and you have paid
Bank of Chicago where he directed analysis of energy loans Approving Manager Job Title your course fee in full, you will only be invoiced for 25% of that course Accounting and Financing Structures in M&A
fee. Please note that the next course must take place within 6 months of
and also created financial modeling techniques used in Please register me for the following seminar: the initial application. Of course, a replacement is always welcome. For
advisory projects. He has used the models in providing November 4-7, 2008, New York City (UF1860)
more information regarding administrative policies, please contact our
office at (212) 361-3299.
Technical Project Finance Modeling Issues
expert testimony on subjects ranging from capital structure May 12-15, 2009, New York City (UF1944) Schedule Changes: Euromoney may occasionally find it necessary to
to investments in multi-billion dollar nuclear plants to reschedule or cancel sessions and will give registrants advance notice of
Fee: $5,225 such changes. Euromoney Training will not accept liability for costs
complex valuation of new investments. Check enclosed: Payable to: Euromoney Training, Inc. Checks must be drawn on a incurred by participants or their organizations for the cancellation of
US bank. Please write attendee(s) name on the face and reference UF1860 or UF1944. travel arrangements and/or accommodation reservations as a result of
the course being cancelled or postponed. We therefore recommend that
Mr. Bodmer received an MBA degree specializing in Charge to my: VISA MasterCard AMEX Wire Transfer delegates take out travel insurance.
econometrics from the University of Chicago and a BS Confidentiality: The information you provide will be safeguarded by INFORMATION HOTLINE:
degree in finance from the University of Illinois. He has the Euromoney Institutional Investor PLC group, whose subsidiaries may
use it to keep you informed of relevant products and services. As an Tel: (212) 361-3299
written many articles and is in the process of completing Account # Expiration Date international group, we may transfer your data on a global basis for the
purposes indicated above.
a textbook on valuation of electricity assets. If you object to contact by: telephone fax email please tick the Fax: (212) 361-3499
Signature Cardholder ’s Name
appropriate box. We occasionally allow reputable companies outside the
email: info@euromoneyny.com
A confirmation will be sent to you promptly upon receipt of your registration. If you do not receive Euromoney Institutional Investor PLC group to contact you with details
confirmation from us within 3 business days of sending your registration, please contact us directly of products that may be of interest to you.
Web: www.euromoneytraining.com/americas
at (212) 361-3299 or registration@euromoneyny.com. If you do not want us to share your information with other reputable
Please make corrections to my mailing label. companies, please tick this box.
Contents of this brochure copyright © 2008 Euromoney Training, Inc. All rights reserved. Printed in U.S.A. www.euromoneytraining.com/americas
 4-Day Agenda
MODULE I: Day 1
Morning: Introduction to M&A and Structure
of Financial Models
The course begins with introductory comments about
the skills for effective modeling and general objectives
in financial modeling for M&A transactions. After the
introductory discussion, the course covers the empirical
evidence on the performance of M&A endeavors. Issues
include: Is there and economic rational for mergers?
After an acquisition has been completed, how should
we determine whether it has been a success or a failure?
Can we find any successful mergers? Not with-standing
the media hype, have what is the empirical evidence on the
success of mergers? What does a real-world M&A model
look like? What are the real incentives of investment
bankers with respect to M&A transactions? How should
modeling of a merger be structured?
LECTURES
• Review of Basic Terminology in M&A
• History of M&A
• Studies on M&A Effectiveness
• Event studies
• LBO’s
• Recent history
• Selected Examples
• Financial Statement Review for M&A
• Stock price and financial returns
• Price to earnings ratios and EV/EBITDA
• Return on equity and return on capital employed
• Value/Book and Value to Replacement Cost
• Debt/Capital, EBIT/Interest, Debt/EBITDAX
• Model Layout for M&A
• Financial model overview
• Transaction structure in M&A models
• Organization of M&A models
CLASS EXERCISES
• Exercise 1a: Review of Modeling in Actual M&A
Transaction
• Exercise 1b: Simple Financial Model of an Acquisition
MODULE II: DAY 1
Afternoon: Construction of Basic Financial Model
Participants in the course will learn how to build a model
from a blank slate. The first modeling session covers
development of a basic model, given capital expenditures,
revenues and expenses. Issues addressed include: How
can we make the models flexible enough to use historic
financial data, future projections and estimates of residual
value? What should the financial statements look like in
our models? What are some of the excel rules that guide
accurate and efficient development of models? How can
financial models be audited to check errors that we will
make? What should we do to incorporate alternative debt
structures and interest during construction into the model?
LECTURES
• Comments on spreadsheet style and conventions
• Building block approach to modeling
• Basic Mechanics of Financial Models
• Separation of historical period from projection period
• Sources and uses of funds statement in transaction
• Cash flow, net income, equity balance, construction
financing and income taxes
• Construction of a balance sheet and use as an
auditing tool
• Conversion of Investment to Corporate Model
• Historical financial statements and reconciliation
• On-going capital expenditures and depreciation
• Mechanics of modeling outstanding shares
• Modeling of short-term debt and temporary securities
• Working Capital
• Balance sheet approach
• Use of revenue and expense ratios
• Cash flow effects
• Mechanics of Adding Debt to Financial Models
• Debt balance tables
• Inclusion of interest expense, debt repayment
and debt balance
• Credit quality measures
CLASS EXERCISES
• Exercise 2a: Base Model Layout and Financial
Statements without Debt
• Exercise 2b: Addition of Debt to the Basic Model
MODULE III: DAY 2
Morning: Standalone Valuation in a Merger
Transaction
The second day begins with the valuation discussion by
introducing the concept of free cash flow in decision
making. Participants will learn the mechanics of computing
free cash flow from financial statements and will consider
how free cash flow can be practically applied in valuation of
stocks. Issues addressed include: How do investment banks
come up with valuation of acquisition candidates? What are
the pros and cons of various valuation methods (other than
getting the answer that we want)? How do investment
banks present results of their valuation analysis? How can
we get our hands around the residual value? What multiple
method is best in various industries? What does the price
to earnings really mean in terms of value generated by a
company? How do the mechanics of alternative valuation
techniques work?
LECTURES
• Discounted Free Cash Flow
• Theory and economic value analysis (EVA)
• Free cash flow without leverage
• Cost of capital applied to free cash flow
• Residual value
• DCF Compared to payback rule and accounting
earnings criteria
• Use of Multiples in Valuing Acquisition Candidates
• Alternative Multiples (P/E, EBITDA/ Value, M/B)
• Rational behind alternative multiples
• Multiples in transactions versus ongoing companies
• Multiples and valuation by business segments
• Valuation multiples in case study
CLASS EXERCISES
• Exercise 3a: Analysis of Valuation in Merger
Transactions
• Exercise 3b: Derivation of Implied Cost of
Capital from Price Earnings Analysis
• Exercise 3c: Application of Alternative Valuation
Techniques in the Financial Model
MODULE IV: DAY 2
Afternoon: Risk Assessment and Cost of Capital
After covering valuation, we move to risk assessment in the
valuation models. Risks are evaluated through application
of the cost of capital, sensitivity analysis and simulation
using volatility of cash flows. Issues addressed in this section
include: What basis should be used for evaluating cost of
capital given how badly the CAPM has been discredited?
How do investment banks compute cost of capital in M&A
analysis? What fundamental value drivers create risks in
M&A modeling? Given all of the difficulties in measuring
cost of capital and residual value, what alternative
approaches to free cash flow should be used? What are
the pros and cons of using alternative multiples in valuing
acquisition candidates? How can tornado diagrams be
applied in M&A applications? How useful are option
pricing concepts related to creating time series equations
with volatility and using Monte Carlo Simulation is
assessment of risk?
LECTURES
• Cost of Capital and Decision Making Investment
decisions and cost of capital
• Cost of capital and valuation
• Cost of capital applied to free cash flow
• CAPM and its limitations
• Computation of Cost of Capital using Alternative
Methods
• Dividend growth model
• Debt capacity model
• Risk premium method
• Implied cost of capital in financial ratios
• Merton model in valuation of equity
• Implied cost of capital from reverse engineering
financial models of similar companies
• Adjustments to cost of capital for taxes and leverage
• Adjustments to beta for leverage
• Computation of all-equity beta
• Adjustments for interest expense
• Risk analysis of economic assumptions
• Commodity price risk
• Technology risk
• Input and supply availability risk
• Foreign currency and political risk
CLASS EXERCISES
• Exercise 4a: Time Series Model of Copper Prices
• Exercise 4b: Break-even case using Southport
Minerals
• Exercise 4c: Inclusion of Sensitivity Analysis
and Tornado Diagram in Southport Case
MODULE V: DAY 3
Morning: Synergy Analysis
A merger or acquisition involves a change in management
control of assets. If management can achieve cost savings,
marketing benefits or price increases through synergies,
shareholder value is enhanced. Valuation of synergies
depends on specific circumstances, but some common
principles apply. Issues in the synergy part of the course
included: Where to companies involved in acquisitions
say that synergies come from? How should the value of
synergies be related to the amount of money paid for an
acquisition? How are synergies estimated in transactions
given the short time frame for completing transactions and
the confidential nature of much data? What statistical methods
can be used to compute synergies?
LECTURES
• Theory of Synergies
• Optimization of asset management
• Alternative types of synergies
• Receipt of synergy valuation by target company
or acquiring company
• The synergy trap
• Negative synergies
• Identifying synergies
• Unique synergies to acquiring company, industry
or general
• Economies of scale
• Marketing improvements
• Productivity enhancements
• Negative synergies
• Case studies in identifying synergies
• Valuation of Synergies
• Available information
• Level of detail
• Examples of synergy valuation
• Alternative ways to achieve savings
• Synergy valuation in case studies
CLASS EXERCISES
• Exercise 5a: Macro Exercises
• Exercise 5b: Addition of Anthema assumptions
to financial model
• Exercise 5c: Computation of bid price with alternative
cost of capital and country risk assumptions
Information
Hotline
MODULE VI: DAY 3
Afternoon: Leveraged Buy-outs
A controversial form of acquisition is leveraged buyouts.
This form of acquisition often involves complex capital
structures with many trenches of debt and the debt has
many covenants that adds difficulty to the modeling process.
Issues addressed in this section include: Have leveraged
buyouts been good for the economy? What type of financial
ratios and cash flow analysis is required to complete a lever-
aged buyout? What amounts of senior debt, subordinated
debt and mezzanine financing should be used in raising
money for a leveraged buyout? How can cash flow water-
falls, asset sales, covenants and other aspects of leveraged
buyouts be modeled?
LECTURES
• Review of Leveraged Buyouts
• Definition of Leveraged Buyouts
• Theory behind Leveraged Buyouts
• Studies of efficiency from Leveraged Buyouts
• Debt Structure in Leveraged Buyouts
• Senior and subordinated debt
• Covenants
• Rating Agencies
• Financial Ratios
• Modeling of Leveraged Buyouts
• Cash flow waterfall
• Modeling the impact of covenants
• Project finance model outputs
CLASS EXERCISES
• Exercise 6a: Review of Leveraged Buyout Case
• Exercise 6b: Modeling a Complex Debt
Structure in the Context of a Leveraged Buyout
MODULE VII: DAY 4
Morning: Accounting and Financing Structures
in M&A
A key question for management is how an acquisition will
affect earnings per share and the general financial condition
of the company after the acquisition. This section reviews
issues associated with dilution and accretion effects of
acquisitions. Actual financial data from companies is used
in the class exercises. Issues addressed in this section include:
What are the benefits and costs of using multilateral
agencies? What are the various multilateral agencies that
can be used? How do rating agencies assess project finance
debt? How can you use project finance models to assign a
risk rating?
LECTURES
• Currency in an M&A Transaction
• Cash payment and debt financing of M&A transactions
• Share exchange in M&A transactions
(212) 361-3299
(212) 361-3499
• Accounting with pooling of interests and
purchase accounting
• Mechanics of computing earnings accretion
and dilution
• Translation of exchange ratios into implicit prices
• Combined and standalone earnings per share
with different growth estimates
• Modeling from alternative perspectives
• Effects of financing on acquisitions
• Actual cases
• Relevance for valuation
• Tax effects
CLASS EXERCISES
• Exercise 7a: Exercise on Accretion and Dilution
using Relative P/E Ratios
• Exercise 7b: Comprehensive M&A Simulation
with Goodwill Accounting, Acquisition Premiums,
Debt and Equity Financing and Assumption of
Existing Debt
MODULE VIII: DAY 4
Afternoon: Technical Project Finance
Modeling Issues
The afternoon module deals with miscellaneous technical
issues that arise in project finance modeling. Subjects include
working capital, formatting, use of data tables, depreciation,
leases, and resolving circularity. The module will cover
further use of macros in modeling as well as financial issues
associated with the topics. Issues include: Does it matter
that circularity arises in our models? Are data tables worth
the hassle in model building? What should be done to
include movements of working capital in the model? Can
we demonstrate the basic cost and benefits of leases with a
relatively simple model?
LECTURES
• Circularity Macros
• Alternative methods to resolve circularity
• Working with range names
• Alternative ways to enter data
• Use of range names
• Theory and Analysis of Leases
• Tax depreciation versus debt repayment
• Tax reasons for using leases
• Formulas for computing lease payments
• Accelerated Depreciation
• Tax depreciation conventions
• Formulas for computing tax depreciation
• Vintage computations of tax depreciation
CLASS EXERCISES
• Exercise 8a: Computation of Lease Rates
• Exercise 8b: Working Capital, Data Tables and
Resolving Circularity
@ info@euromoneyny.com
www.euromoneytraining.com/americas
 4-Day Agenda
MODULE I: Day 1
Morning: Introduction to M&A and Structure
of Financial Models
The course begins with introductory comments about
the skills for effective modeling and general objectives
in financial modeling for M&A transactions. After the
introductory discussion, the course covers the empirical
evidence on the performance of M&A endeavors. Issues
include: Is there and economic rational for mergers?
After an acquisition has been completed, how should
we determine whether it has been a success or a failure?
Can we find any successful mergers? Not with-standing
the media hype, have what is the empirical evidence on the
success of mergers? What does a real-world M&A model
look like? What are the real incentives of investment
bankers with respect to M&A transactions? How should
modeling of a merger be structured?
LECTURES
• Review of Basic Terminology in M&A
• History of M&A
• Studies on M&A Effectiveness
• Event studies
• LBO’s
• Recent history
• Selected Examples
• Financial Statement Review for M&A
• Stock price and financial returns
• Price to earnings ratios and EV/EBITDA
• Return on equity and return on capital employed
• Value/Book and Value to Replacement Cost
• Debt/Capital, EBIT/Interest, Debt/EBITDAX
• Model Layout for M&A
• Financial model overview
• Transaction structure in M&A models
• Organization of M&A models
CLASS EXERCISES
• Exercise 1a: Review of Modeling in Actual M&A
Transaction
• Exercise 1b: Simple Financial Model of an Acquisition
MODULE II: DAY 1
Afternoon: Construction of Basic Financial Model
Participants in the course will learn how to build a model
from a blank slate. The first modeling session covers
development of a basic model, given capital expenditures,
revenues and expenses. Issues addressed include: How
can we make the models flexible enough to use historic
financial data, future projections and estimates of residual
value? What should the financial statements look like in
our models? What are some of the excel rules that guide
accurate and efficient development of models? How can
financial models be audited to check errors that we will
make? What should we do to incorporate alternative debt
structures and interest during construction into the model?
LECTURES
• Comments on spreadsheet style and conventions
• Building block approach to modeling
• Basic Mechanics of Financial Models
• Separation of historical period from projection period
• Sources and uses of funds statement in transaction
• Cash flow, net income, equity balance, construction
financing and income taxes
• Construction of a balance sheet and use as an
auditing tool
• Conversion of Investment to Corporate Model
• Historical financial statements and reconciliation
• On-going capital expenditures and depreciation
• Mechanics of modeling outstanding shares
• Modeling of short-term debt and temporary securities
• Working Capital
• Balance sheet approach
• Use of revenue and expense ratios
• Cash flow effects
• Mechanics of Adding Debt to Financial Models
• Debt balance tables
• Inclusion of interest expense, debt repayment
and debt balance
• Credit quality measures
CLASS EXERCISES
• Exercise 2a: Base Model Layout and Financial
Statements without Debt
• Exercise 2b: Addition of Debt to the Basic Model
MODULE III: DAY 2
Morning: Standalone Valuation in a Merger
Transaction
The second day begins with the valuation discussion by
introducing the concept of free cash flow in decision
making. Participants will learn the mechanics of computing
free cash flow from financial statements and will consider
how free cash flow can be practically applied in valuation of
stocks. Issues addressed include: How do investment banks
come up with valuation of acquisition candidates? What are
the pros and cons of various valuation methods (other than
getting the answer that we want)? How do investment
banks present results of their valuation analysis? How can
we get our hands around the residual value? What multiple
method is best in various industries? What does the price
to earnings really mean in terms of value generated by a
company? How do the mechanics of alternative valuation
techniques work?
LECTURES
• Discounted Free Cash Flow
• Theory and economic value analysis (EVA)
• Free cash flow without leverage
• Cost of capital applied to free cash flow
• Residual value
• DCF Compared to payback rule and accounting
earnings criteria
• Use of Multiples in Valuing Acquisition Candidates
• Alternative Multiples (P/E, EBITDA/ Value, M/B)
• Rational behind alternative multiples
• Multiples in transactions versus ongoing companies
• Multiples and valuation by business segments
• Valuation multiples in case study
CLASS EXERCISES
• Exercise 3a: Analysis of Valuation in Merger
Transactions
• Exercise 3b: Derivation of Implied Cost of
Capital from Price Earnings Analysis
• Exercise 3c: Application of Alternative Valuation
Techniques in the Financial Model
MODULE IV: DAY 2
Afternoon: Risk Assessment and Cost of Capital
After covering valuation, we move to risk assessment in the
valuation models. Risks are evaluated through application
of the cost of capital, sensitivity analysis and simulation
using volatility of cash flows. Issues addressed in this section
include: What basis should be used for evaluating cost of
capital given how badly the CAPM has been discredited?
How do investment banks compute cost of capital in M&A
analysis? What fundamental value drivers create risks in
M&A modeling? Given all of the difficulties in measuring
cost of capital and residual value, what alternative
approaches to free cash flow should be used? What are
the pros and cons of using alternative multiples in valuing
acquisition candidates? How can tornado diagrams be
applied in M&A applications? How useful are option
pricing concepts related to creating time series equations
with volatility and using Monte Carlo Simulation is
assessment of risk?
LECTURES
• Cost of Capital and Decision Making Investment
decisions and cost of capital
• Cost of capital and valuation
• Cost of capital applied to free cash flow
• CAPM and its limitations
• Computation of Cost of Capital using Alternative
Methods
• Dividend growth model
• Debt capacity model
• Risk premium method
• Implied cost of capital in financial ratios
• Merton model in valuation of equity
• Implied cost of capital from reverse engineering
financial models of similar companies
• Adjustments to cost of capital for taxes and leverage
• Adjustments to beta for leverage
• Computation of all-equity beta
• Adjustments for interest expense
• Risk analysis of economic assumptions
• Commodity price risk
• Technology risk
• Input and supply availability risk
• Foreign currency and political risk
CLASS EXERCISES
• Exercise 4a: Time Series Model of Copper Prices
• Exercise 4b: Break-even case using Southport
Minerals
• Exercise 4c: Inclusion of Sensitivity Analysis
and Tornado Diagram in Southport Case
MODULE V: DAY 3
Morning: Synergy Analysis
A merger or acquisition involves a change in management
control of assets. If management can achieve cost savings,
marketing benefits or price increases through synergies,
shareholder value is enhanced. Valuation of synergies
depends on specific circumstances, but some common
principles apply. Issues in the synergy part of the course
included: Where to companies involved in acquisitions
say that synergies come from? How should the value of
synergies be related to the amount of money paid for an
acquisition? How are synergies estimated in transactions
given the short time frame for completing transactions and
the confidential nature of much data? What statistical methods
can be used to compute synergies?
LECTURES
• Theory of Synergies
• Optimization of asset management
• Alternative types of synergies
• Receipt of synergy valuation by target company
or acquiring company
• The synergy trap
• Negative synergies
• Identifying synergies
• Unique synergies to acquiring company, industry
or general
• Economies of scale
• Marketing improvements
• Productivity enhancements
• Negative synergies
• Case studies in identifying synergies
• Valuation of Synergies
• Available information
• Level of detail
• Examples of synergy valuation
• Alternative ways to achieve savings
• Synergy valuation in case studies
CLASS EXERCISES
• Exercise 5a: Macro Exercises
• Exercise 5b: Addition of Anthema assumptions
to financial model
• Exercise 5c: Computation of bid price with alternative
cost of capital and country risk assumptions
Information
Hotline
MODULE VI: DAY 3
Afternoon: Leveraged Buy-outs
A controversial form of acquisition is leveraged buyouts.
This form of acquisition often involves complex capital
structures with many trenches of debt and the debt has
many covenants that adds difficulty to the modeling process.
Issues addressed in this section include: Have leveraged
buyouts been good for the economy? What type of financial
ratios and cash flow analysis is required to complete a lever-
aged buyout? What amounts of senior debt, subordinated
debt and mezzanine financing should be used in raising
money for a leveraged buyout? How can cash flow water-
falls, asset sales, covenants and other aspects of leveraged
buyouts be modeled?
LECTURES
• Review of Leveraged Buyouts
• Definition of Leveraged Buyouts
• Theory behind Leveraged Buyouts
• Studies of efficiency from Leveraged Buyouts
• Debt Structure in Leveraged Buyouts
• Senior and subordinated debt
• Covenants
• Rating Agencies
• Financial Ratios
• Modeling of Leveraged Buyouts
• Cash flow waterfall
• Modeling the impact of covenants
• Project finance model outputs
CLASS EXERCISES
• Exercise 6a: Review of Leveraged Buyout Case
• Exercise 6b: Modeling a Complex Debt
Structure in the Context of a Leveraged Buyout
MODULE VII: DAY 4
Morning: Accounting and Financing Structures
in M&A
A key question for management is how an acquisition will
affect earnings per share and the general financial condition
of the company after the acquisition. This section reviews
issues associated with dilution and accretion effects of
acquisitions. Actual financial data from companies is used
in the class exercises. Issues addressed in this section include:
What are the benefits and costs of using multilateral
agencies? What are the various multilateral agencies that
can be used? How do rating agencies assess project finance
debt? How can you use project finance models to assign a
risk rating?
LECTURES
• Currency in an M&A Transaction
• Cash payment and debt financing of M&A transactions
• Share exchange in M&A transactions
(212) 361-3299
(212) 361-3499
• Accounting with pooling of interests and
purchase accounting
• Mechanics of computing earnings accretion
and dilution
• Translation of exchange ratios into implicit prices
• Combined and standalone earnings per share
with different growth estimates
• Modeling from alternative perspectives
• Effects of financing on acquisitions
• Actual cases
• Relevance for valuation
• Tax effects
CLASS EXERCISES
• Exercise 7a: Exercise on Accretion and Dilution
using Relative P/E Ratios
• Exercise 7b: Comprehensive M&A Simulation
with Goodwill Accounting, Acquisition Premiums,
Debt and Equity Financing and Assumption of
Existing Debt
MODULE VIII: DAY 4
Afternoon: Technical Project Finance
Modeling Issues
The afternoon module deals with miscellaneous technical
issues that arise in project finance modeling. Subjects include
working capital, formatting, use of data tables, depreciation,
leases, and resolving circularity. The module will cover
further use of macros in modeling as well as financial issues
associated with the topics. Issues include: Does it matter
that circularity arises in our models? Are data tables worth
the hassle in model building? What should be done to
include movements of working capital in the model? Can
we demonstrate the basic cost and benefits of leases with a
relatively simple model?
LECTURES
• Circularity Macros
• Alternative methods to resolve circularity
• Working with range names
• Alternative ways to enter data
• Use of range names
• Theory and Analysis of Leases
• Tax depreciation versus debt repayment
• Tax reasons for using leases
• Formulas for computing lease payments
• Accelerated Depreciation
• Tax depreciation conventions
• Formulas for computing tax depreciation
• Vintage computations of tax depreciation
CLASS EXERCISES
• Exercise 8a: Computation of Lease Rates
• Exercise 8b: Working Capital, Data Tables and
Resolving Circularity
@ info@euromoneyny.com
www.euromoneytraining.com/americas
 4-Day Agenda
MODULE I: Day 1
Morning: Introduction to M&A and Structure
of Financial Models
The course begins with introductory comments about
the skills for effective modeling and general objectives
in financial modeling for M&A transactions. After the
introductory discussion, the course covers the empirical
evidence on the performance of M&A endeavors. Issues
include: Is there and economic rational for mergers?
After an acquisition has been completed, how should
we determine whether it has been a success or a failure?
Can we find any successful mergers? Not with-standing
the media hype, have what is the empirical evidence on the
success of mergers? What does a real-world M&A model
look like? What are the real incentives of investment
bankers with respect to M&A transactions? How should
modeling of a merger be structured?
LECTURES
• Review of Basic Terminology in M&A
• History of M&A
• Studies on M&A Effectiveness
• Event studies
• LBO’s
• Recent history
• Selected Examples
• Financial Statement Review for M&A
• Stock price and financial returns
• Price to earnings ratios and EV/EBITDA
• Return on equity and return on capital employed
• Value/Book and Value to Replacement Cost
• Debt/Capital, EBIT/Interest, Debt/EBITDAX
• Model Layout for M&A
• Financial model overview
• Transaction structure in M&A models
• Organization of M&A models
CLASS EXERCISES
• Exercise 1a: Review of Modeling in Actual M&A
Transaction
• Exercise 1b: Simple Financial Model of an Acquisition
MODULE II: DAY 1
Afternoon: Construction of Basic Financial Model
Participants in the course will learn how to build a model
from a blank slate. The first modeling session covers
development of a basic model, given capital expenditures,
revenues and expenses. Issues addressed include: How
can we make the models flexible enough to use historic
financial data, future projections and estimates of residual
value? What should the financial statements look like in
our models? What are some of the excel rules that guide
accurate and efficient development of models? How can
financial models be audited to check errors that we will
make? What should we do to incorporate alternative debt
structures and interest during construction into the model?
LECTURES
• Comments on spreadsheet style and conventions
• Building block approach to modeling
• Basic Mechanics of Financial Models
• Separation of historical period from projection period
• Sources and uses of funds statement in transaction
• Cash flow, net income, equity balance, construction
financing and income taxes
• Construction of a balance sheet and use as an
auditing tool
• Conversion of Investment to Corporate Model
• Historical financial statements and reconciliation
• On-going capital expenditures and depreciation
• Mechanics of modeling outstanding shares
• Modeling of short-term debt and temporary securities
• Working Capital
• Balance sheet approach
• Use of revenue and expense ratios
• Cash flow effects
• Mechanics of Adding Debt to Financial Models
• Debt balance tables
• Inclusion of interest expense, debt repayment
and debt balance
• Credit quality measures
CLASS EXERCISES
• Exercise 2a: Base Model Layout and Financial
Statements without Debt
• Exercise 2b: Addition of Debt to the Basic Model
MODULE III: DAY 2
Morning: Standalone Valuation in a Merger
Transaction
The second day begins with the valuation discussion by
introducing the concept of free cash flow in decision
making. Participants will learn the mechanics of computing
free cash flow from financial statements and will consider
how free cash flow can be practically applied in valuation of
stocks. Issues addressed include: How do investment banks
come up with valuation of acquisition candidates? What are
the pros and cons of various valuation methods (other than
getting the answer that we want)? How do investment
banks present results of their valuation analysis? How can
we get our hands around the residual value? What multiple
method is best in various industries? What does the price
to earnings really mean in terms of value generated by a
company? How do the mechanics of alternative valuation
techniques work?
LECTURES
• Discounted Free Cash Flow
• Theory and economic value analysis (EVA)
• Free cash flow without leverage
• Cost of capital applied to free cash flow
• Residual value
• DCF Compared to payback rule and accounting
earnings criteria
• Use of Multiples in Valuing Acquisition Candidates
• Alternative Multiples (P/E, EBITDA/ Value, M/B)
• Rational behind alternative multiples
• Multiples in transactions versus ongoing companies
• Multiples and valuation by business segments
• Valuation multiples in case study
CLASS EXERCISES
• Exercise 3a: Analysis of Valuation in Merger
Transactions
• Exercise 3b: Derivation of Implied Cost of
Capital from Price Earnings Analysis
• Exercise 3c: Application of Alternative Valuation
Techniques in the Financial Model
MODULE IV: DAY 2
Afternoon: Risk Assessment and Cost of Capital
After covering valuation, we move to risk assessment in the
valuation models. Risks are evaluated through application
of the cost of capital, sensitivity analysis and simulation
using volatility of cash flows. Issues addressed in this section
include: What basis should be used for evaluating cost of
capital given how badly the CAPM has been discredited?
How do investment banks compute cost of capital in M&A
analysis? What fundamental value drivers create risks in
M&A modeling? Given all of the difficulties in measuring
cost of capital and residual value, what alternative
approaches to free cash flow should be used? What are
the pros and cons of using alternative multiples in valuing
acquisition candidates? How can tornado diagrams be
applied in M&A applications? How useful are option
pricing concepts related to creating time series equations
with volatility and using Monte Carlo Simulation is
assessment of risk?
LECTURES
• Cost of Capital and Decision Making Investment
decisions and cost of capital
• Cost of capital and valuation
• Cost of capital applied to free cash flow
• CAPM and its limitations
• Computation of Cost of Capital using Alternative
Methods
• Dividend growth model
• Debt capacity model
• Risk premium method
• Implied cost of capital in financial ratios
• Merton model in valuation of equity
• Implied cost of capital from reverse engineering
financial models of similar companies
• Adjustments to cost of capital for taxes and leverage
• Adjustments to beta for leverage
• Computation of all-equity beta
• Adjustments for interest expense
• Risk analysis of economic assumptions
• Commodity price risk
• Technology risk
• Input and supply availability risk
• Foreign currency and political risk
CLASS EXERCISES
• Exercise 4a: Time Series Model of Copper Prices
• Exercise 4b: Break-even case using Southport
Minerals
• Exercise 4c: Inclusion of Sensitivity Analysis
and Tornado Diagram in Southport Case
MODULE V: DAY 3
Morning: Synergy Analysis
A merger or acquisition involves a change in management
control of assets. If management can achieve cost savings,
marketing benefits or price increases through synergies,
shareholder value is enhanced. Valuation of synergies
depends on specific circumstances, but some common
principles apply. Issues in the synergy part of the course
included: Where to companies involved in acquisitions
say that synergies come from? How should the value of
synergies be related to the amount of money paid for an
acquisition? How are synergies estimated in transactions
given the short time frame for completing transactions and
the confidential nature of much data? What statistical methods
can be used to compute synergies?
LECTURES
• Theory of Synergies
• Optimization of asset management
• Alternative types of synergies
• Receipt of synergy valuation by target company
or acquiring company
• The synergy trap
• Negative synergies
• Identifying synergies
• Unique synergies to acquiring company, industry
or general
• Economies of scale
• Marketing improvements
• Productivity enhancements
• Negative synergies
• Case studies in identifying synergies
• Valuation of Synergies
• Available information
• Level of detail
• Examples of synergy valuation
• Alternative ways to achieve savings
• Synergy valuation in case studies
CLASS EXERCISES
• Exercise 5a: Macro Exercises
• Exercise 5b: Addition of Anthema assumptions
to financial model
• Exercise 5c: Computation of bid price with alternative
cost of capital and country risk assumptions
Information
Hotline
MODULE VI: DAY 3
Afternoon: Leveraged Buy-outs
A controversial form of acquisition is leveraged buyouts.
This form of acquisition often involves complex capital
structures with many trenches of debt and the debt has
many covenants that adds difficulty to the modeling process.
Issues addressed in this section include: Have leveraged
buyouts been good for the economy? What type of financial
ratios and cash flow analysis is required to complete a lever-
aged buyout? What amounts of senior debt, subordinated
debt and mezzanine financing should be used in raising
money for a leveraged buyout? How can cash flow water-
falls, asset sales, covenants and other aspects of leveraged
buyouts be modeled?
LECTURES
• Review of Leveraged Buyouts
• Definition of Leveraged Buyouts
• Theory behind Leveraged Buyouts
• Studies of efficiency from Leveraged Buyouts
• Debt Structure in Leveraged Buyouts
• Senior and subordinated debt
• Covenants
• Rating Agencies
• Financial Ratios
• Modeling of Leveraged Buyouts
• Cash flow waterfall
• Modeling the impact of covenants
• Project finance model outputs
CLASS EXERCISES
• Exercise 6a: Review of Leveraged Buyout Case
• Exercise 6b: Modeling a Complex Debt
Structure in the Context of a Leveraged Buyout
MODULE VII: DAY 4
Morning: Accounting and Financing Structures
in M&A
A key question for management is how an acquisition will
affect earnings per share and the general financial condition
of the company after the acquisition. This section reviews
issues associated with dilution and accretion effects of
acquisitions. Actual financial data from companies is used
in the class exercises. Issues addressed in this section include:
What are the benefits and costs of using multilateral
agencies? What are the various multilateral agencies that
can be used? How do rating agencies assess project finance
debt? How can you use project finance models to assign a
risk rating?
LECTURES
• Currency in an M&A Transaction
• Cash payment and debt financing of M&A transactions
• Share exchange in M&A transactions
(212) 361-3299
(212) 361-3499
• Accounting with pooling of interests and
purchase accounting
• Mechanics of computing earnings accretion
and dilution
• Translation of exchange ratios into implicit prices
• Combined and standalone earnings per share
with different growth estimates
• Modeling from alternative perspectives
• Effects of financing on acquisitions
• Actual cases
• Relevance for valuation
• Tax effects
CLASS EXERCISES
• Exercise 7a: Exercise on Accretion and Dilution
using Relative P/E Ratios
• Exercise 7b: Comprehensive M&A Simulation
with Goodwill Accounting, Acquisition Premiums,
Debt and Equity Financing and Assumption of
Existing Debt
MODULE VIII: DAY 4
Afternoon: Technical Project Finance
Modeling Issues
The afternoon module deals with miscellaneous technical
issues that arise in project finance modeling. Subjects include
working capital, formatting, use of data tables, depreciation,
leases, and resolving circularity. The module will cover
further use of macros in modeling as well as financial issues
associated with the topics. Issues include: Does it matter
that circularity arises in our models? Are data tables worth
the hassle in model building? What should be done to
include movements of working capital in the model? Can
we demonstrate the basic cost and benefits of leases with a
relatively simple model?
LECTURES
• Circularity Macros
• Alternative methods to resolve circularity
• Working with range names
• Alternative ways to enter data
• Use of range names
• Theory and Analysis of Leases
• Tax depreciation versus debt repayment
• Tax reasons for using leases
• Formulas for computing lease payments
• Accelerated Depreciation
• Tax depreciation conventions
• Formulas for computing tax depreciation
• Vintage computations of tax depreciation
CLASS EXERCISES
• Exercise 8a: Computation of Lease Rates
• Exercise 8b: Working Capital, Data Tables and
Resolving Circularity
@ info@euromoneyny.com
www.euromoneytraining.com/americas

Financial Modeling for Mergers & Acquisitions
COURSE SUMMARY
Financial modeling for mergers and acquisitions is an intensive
hands-on course in which attendees receive comprehensive
instruction on modeling economic, financial and strategic
issues associated with mergers and acquisitions. After
describing general issues in mergers and acquisitions, the
course covers programming and model structuring where
attendees follow the lead of the instructor in building their
own model. As the course progresses, attendees perform
more work on an independent basis using two comprehensive
case studies.
Attendees will build a complete financial model in the context
of M&A. To demonstrate various financial and modeling
concepts, participants will also complete focused computer
exercises. In addition to building their own models, the
course will cover how to use fully developed models that
incorporate sophisticated M&A concepts. By the end of the
course, participants will be able to program and apply
simulation, real options and tornado diagrams in the
models they have developed on their own.
In the process of learning how to develop models for M&A
analysis, the course addresses a wide variety of programming,
financial, statistical and economic issues. Financial issues
include valuation analysis, the theory of synergies, the currency
used in a transaction and accounting for transactions and
credit analysis of leveraged buyouts. Statistical concepts
addressed in the course include measurement of volatility,
mean reversion and boundary conditions associated with
economic time series. The programming issues include
designing macros relevant for project finance models, auditing
financial models, circularity associated with interest during
construction, modeling of debt service reserves and organizing
financial models for effective presentations.
RESOURCES RECEIVED BY PARTICIPANTS
Other than the most important item – knowledge of how to
build, use and analyze financial models in an M&A context –
participants in the course will receive many other resources.
Participants will be provided with the following software:
• Basic corporate model with macros and instructions to
create comprehensive analysis;
• Fully developed financial models with debt structuring,
debt sizing, contract pricing and sensitivity analysis;
• Time series software that incorporates volatility, mean
reversion and other parameters into models;
• Monte Carlo simulation software that combines times
series analysis with financial modeling;
• Software that computes implied volatility and option
pricing using the Black Scholes model;
• Yield spread models that compute required yield spreads
on project finance debt form time series analysis;
• Corporate modeling software that extends project finance
models to evaluate valuation of entire corporations;
@ www.euromoneytraining.com/americas
Visit our website
PLEASE CIRCULATE TO: EUROMONEY TRAINING
Financial Modeling for Mergers & Acquisitions Analysts
Strategic M&A departments
......................................................................................................
Focused Financial Training for Professionals by Professionals
M&A Consultants
Investment Bankers
• Forward pricing software that projects prices from Finance Directors
marginal cost analysis;
FINANCIAL
CFO’s
• A variety of macro exercises that compute debt capacity, Training Managers
resolve circularity, develop tornado diagrams and Please send me information on:
construct vintage depreciation. Financial Modeling in Excel
MODELING FOR
Participants will also be provided with extensive data bases Structured Finance Modeling
on actual projects, commodity price history and case studies.
Private Equity & LBO Modeling
Finally, participants will receive a manuscript from the book
Valuation and Forward Pricing of Capital Intensive Investments. Mergers & Acquisitions
MERGERS &
COURSE OUTLINE
Financial modeling for M&A is designed as a four day
course. For purposes of the outline, each of the four days
is divided into two modules, resulting in a total of eight
modules for the entire course. ACQUISITIONS
The outline below presents teaching objectives, lectures and
case work in each of the different modules.
COURSE DIRECTOR November 4-7, 2008
Edward Bodmer has created innovative forward pricing,
productivity measurement and investment valuation software May 12-15, 2009
for consulting clients throughout the United States, taught
energy economics and finance throughout the world, and
New York City
Return the registration form below
formulated significant government policy and corporate
strategy in the U.S. Mr. Bodmer’s consulting clients include Registration Form REGISTRATION INFORMATION:
investment banks, commercial banks, research institutions MAIL: Course Administrator
PLEASE USE BLOCK PRINT-PHOTOCOPY FOR MULTIPLE BOOKINGS Euromoney Training
and government agencies on a wide variety of complex
Mr. Mrs. Ms. Dr. Prof. 225 Park Avenue South, 8th Floor
valuation and advisory matters. New York, NY 10003-1604 USA
He has constructed a unique framework for electricity price (Surname) (Given Name) Call: (212) 361-3299 A 4-day computer based program with case studies and
Fax: (212) 361-3499
forecasting and valuation using production cost modeling Job Title E-mail: registration@euromoneyny.com workshop sessions featuring:
techniques combined with option price theory and Monte Web: www.euromoneytraining.com/americas
Carlo simulation. Mr. Bodmer is also an adjunct professor at Department Course Venue and Accommodation: M&A and Structure of Financial Models
Lewis University where he teaches courses in microeconomics. For details of course venue, please contact Euromoney at 1-212-361-3299
Company/Organization Fee: The registration fee covers seminar materials, refreshments, and
Along with his practical experience that covers a multitude lunch. Fee must be paid 21 working days in advance by cash, company Standalone Valuation in a Merger Transaction
check (U.S. dollars), VISA, MasterCard, or American Express. Seat is
of major advisory projects, he has taught specialized courses E-Mail (Required) confirmed only upon receipt of payment
in financial modeling, electricity pricing, option valuation, Team Discounts: When two people from the same organization register, Risk Assessment and Cost of Capital
Address Mail Stop/Floor each gets a discount of 5%. Registrations must be made at the same time
mergers and acquisitions and contracting to investment and paid for together and may not be combined with any other discount.
banks, commercial banks, industrial corporations and Cancellations: A full refund less an administration fee of $150 will be Synergy Analysis
City State/Province Zip + 4/Mail Code given for cancellations up to 21 days before the event. Cancellations must
electric utility companies. be made in writing (letter or fax) and reach this office before the 21 day
Phone Fax
deadline. Delegates who cancel less than 21 days before the event, or who Leveraged Buy-outs
don’t attend, are liable to pay the full course fee and no refunds can be
Mr. Bodmer was formerly Vice President at the First National given. However, if you wish to attend the next course, and you have paid
Bank of Chicago where he directed analysis of energy loans Approving Manager Job Title your course fee in full, you will only be invoiced for 25% of that course Accounting and Financing Structures in M&A
fee. Please note that the next course must take place within 6 months of
and also created financial modeling techniques used in Please register me for the following seminar: the initial application. Of course, a replacement is always welcome. For
advisory projects. He has used the models in providing November 4-7, 2008, New York City (UF1860)
more information regarding administrative policies, please contact our
office at (212) 361-3299.
Technical Project Finance Modeling Issues
expert testimony on subjects ranging from capital structure May 12-15, 2009, New York City (UF1944) Schedule Changes: Euromoney may occasionally find it necessary to
to investments in multi-billion dollar nuclear plants to reschedule or cancel sessions and will give registrants advance notice of
Fee: $5,225 such changes. Euromoney Training will not accept liability for costs
complex valuation of new investments. Check enclosed: Payable to: Euromoney Training, Inc. Checks must be drawn on a incurred by participants or their organizations for the cancellation of
US bank. Please write attendee(s) name on the face and reference UF1860 or UF1944. travel arrangements and/or accommodation reservations as a result of
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