M&A Accounting and Analysis Fundamentals

Description

AMT Training has a new home!

In 2021, AMT Training joined Training The Street

The new global standard in financial modeling and valuation training
We have expanded our product offering by combining our content libraries with Training The Street. You can find your training solutions for corporate, Public Courses, and self-study all in one place.

Who should attend the course?

• New hires who have joined the firm late and missed the in-house program
• Individuals looking to fill a knowledge gap
• Experienced bankers looking to refresh their technical skills
• Teams employed in financial strategy roles from non-banking corporations
• Graduates preparing to interview for a role in the finance sector
• Students at business school and looking for a career in finance

What you will learn

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.

Learning outcomes:

• Accounting rules for equity investments
• Fair value through profit and loss investments
• Available for sale investments
• Equity method investments (associates/affiliates)
• Proportional consolidation
• Full consolidation
• Non-controlling interest
• Consolidation of balance sheet and income statement
• Impact of an M&A transaction on earnings
• Goodwill calculations
• Goodwill impairment test
• The impact of deal financing

M&A Analysis Fundamentals

This session covers the basic steps of analyzing an acquisition - covering the impact of a deal on the financial 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.

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