M&A Accounting

During this session participants learn the accounting rules to incorporate equity investments in the consolidated accounts and work on several examples by preparing proforma financials for a variety of cases. Complexities such as non-controlling interests and equity method investments (associates / affiliates), and their impact on earnings and cash flows are also covered.

M&A Analysis Fundamentals

This session covers the basic steps of analyzing an acquisition – covering the impact of a deal on the financial accounting statements with a particular focus on EPS, PE and contribution analysis. By the end of the session, the class builds an accretion / dilution model using EPS forecasts and acquisition assumptions, proforma leverage ratios and a proforma balance sheet.

M&A Analysis Fundamentals

LEARNING OUTCOMES

• Big picture: what is the transaction impact on acquirer and target shareholders?
• Preparing key acquisition data
• Building a flexible funding structure
• Modeling acquisition adjustments
• Calculating the accretion/dilution effects of the deal
• Understanding the significance of relative P/Es
• Calculating and understanding contribution analysis
• Ownership issues
• Income statement contribution
• Credit issues and leverage ratios
• The strategic implication of different financing alternatives
• Synergies and synergies needed to break even
• Proforma balance sheet
• Sensitivity and scenario analysis