Mergers & Acquisitions / LBO Modelling Course


The purpose of the workshop is for participants to learn how to build two key financial models: a mergers and a leveraged buyout model using best practice international principles. This will include the development of combined and forecast financial statements and the mastering of the main Excel techniques (such as forecasting, risk and uncertainty issues, differing scenarios and optimisation).

They will learn how to deal with more problematic modelling issues and gain hands-on experience of applying these skills.  By building complete models, participants will gain the confidence to build and revise their own mergers and valuation models.

Key Points

Many working models fail due to inadequate structures and methodology and this workshop offers the opportunity to build two comprehensive financial models using best-practice principles.  Each of the two days commence with a discussion of objectives and required outputs and then develop the case models in stages.  On completion, participants will have built two complete models for future use and development.


The workshop is taught using demonstrations combined with practical and interactive case studies.  The exercises in each session reinforce the concepts covered in each of the units.  Emphasis is placed on delegates gaining practical, hands-on experience of the design and construction of financial models in Excel. Comprehensive product notes and modelling software are provided for future reference.


Participants will receive printouts of all slides and the Excel spreadsheets used during the workshop plus a selection of templates and add-ins.

Course Objectives

  • Overview of best practice financial modelling
  • Key Excel features and techniques
  • Develop a two models during the workshop
  • Mergers model
  • Leveraged buyout model
  • How to handle financing and other issues
  • Build in sensitivities
  • Present findings effectively
  • Gain hands-on modelling experience

Day One

Introduction and M&A Model

Module 1

  • Model Design Best Practice
  • Why firms pursue mergers and acquisitions
  • Problems associated with mergers and acquisitions
  • Attributes of successful acquisitions
  • Types of deals
  • Deal time line and stages of an acquisition
  • Model layout and design
  • Spreadsheet design best practice
  • Design standard
  • Model building steps
  • Practical: producing a model framework using best practice

Module 2        

Mergers Model

  • Building financial statements
  • Modelling the financial impact of the transaction
  • Worked example
  • Practical: completing operating statements

Module 3

Post-Merger Ratio Analysis

  • Developing the post-acquisition balance sheet
  • Financing the acquisition
  • Risk matrix
  • Practical: Completing template

Module 4

Synergy and Sensitivity

  • Integration and success factors
  • Types of synergies
  • Valuing operating and financing synergies
  • Analysing the results
  • Practical: calculating required synergies

Module 5        

Modelling LBO Financial Statements

  • Outline of LBO case study
  • Review of financing structures
  • Modelling cash flow
  • Adding debt repayments
  • Model completion – cash flow and capital structure

Day Two

Module 6        

Valuation Framework

  • Free cash flows
  • Underlying assumptions in a forecast cost of capital
  • Calculated cost of debt
  • Target debt capacity
  • Value drivers and terminal methods
  • Model completion – discount rates, terminal value and initial valuation

Module 7        

Adjusting for Management Incentives

  • Value enhancing measures
  • Incentives
  • Financial covenants
  • Model completion – cover ratios, decision factors
  • Acceptability of result against cover ratios and key multiples
  • Practical: adjusting for covenants

Module 8        

Sensitivity and Optimisation

  • Sensitivity analysis
  • Scenarios
  • Optimisation techniques
  • Practical: Adding sensitivity and scenarios

Module 9        

Model Summary and Presentation

  • Management summary
  • Dynamic charts
  • Presenting key findings
  • User feedback
  • Version control

Questions and answers

  • Corporate finance executives
  • Investment officers
  • In-house lawyers
  • Financial directors
  • Commercial directors
  • Senior executives responsible for mergers and acquisitions
  • Financial controllers and managers
  • Financial and business analysts
  • Credit analysts
  • Accountants


Mr. A. Day

Mr. Day is a finance professional with extensive experience of financial modelling, finance and leasing.  Alastair was previously a director of a start-up structured finance company, which grew rapidly and was subsequently sold to a public company.

Later, he established an independent consultancy to concentrate on assignments in structured finance, leasing and financial model development.

Past projects have included investment analysis, debt restructuring, valuation, aircraft leasing, power and project finance models prepared for a variety of clients. In addition, Alastair designs and delivers courses covering financial modelling, credit analysis and equipment leasing.

Mr. Day has a degree in German and Economics from London University and an MBA.  He has held positions as an associate lecturer at the OUBS and the ifs University College (Chartered Institute of Bankers).

Books Authored By Mr. Day

He is the author of standard modelling textbooks such as Mastering Financial Modelling, Mastering Risk Modelling, Mastering Cash Flow and Valuation Modelling and Mastering Financial Mathematics in Excel, together with a number of leasing and credit books.

Note:  His full professional Biography is available on request.


Holiday Inn Hotel, Sandton – Johannesburg

Dates: 11th  – 12th May 2017

Course Prices and Discounts can be viewed after registration.

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