ADVANCED SKILLS

Divestiture Analysis, Modeling and M&A Modeling Issues

For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.

Course details

Divestiture Analysis & Modeling

This session covers the main divestiture and restructuring options available to a firm as a growing concern. The motives and cons of each structure are explained and their balance sheet impact is analyzed in detail. Spreadsheet work and real cases are used throughout the session.

Learning outcomes

  • Overview of divestiture and restructuring alternatives available to firms
    • Divestiture (private sale and IPO)
    • Spin-off and split-up
    • Split off
    • Equity carve out
  • Creating the balance sheet post-deal
    • Deconsolidation process
    • Calculating the gain on disposal, including tax
    • Tax basis vs. book basis of investment sold
    • Dealing with non-controlling interests
    • Adjusting the capital structure of the business to be divested/restructured
  • Use of sale proceeds and scenario analysis
    • Operating investments (capex or business acquisitions)
    • Investments in financial assets
    • Repayment of debt
    • Repurchase of shares
    • Special dividend
  • EPS analysis, including using relative P/Es

M&A Modeling Issues

This session addresses four key complexities in M&A models: Non-coterminous year ends, using a flexible deal date, currency translation and the creation of a non-controlling interest. In order to fully benefit from the session, delegates should have knowledge of the fundamentals of M&A accounting and familiarity with financial modeling.

Learning outcomes

  • Building an M&A model: overview
  • Non-coterminous years: calendarizing the financials of the target
  • Dealing with calendarization issues (e.g. lack of underlying data)
  • Building a flexible deal date in the M&A model
  • Explanation of stub and roll forward periods in relation to the flexible deal date
  • Purchase accounting and the mechanics of full consolidation
  • Modeling the completion balance sheet and consolidated financial statements post-deal
  • Dealing with different currencies
  • Creating a non-controlling interest at the acquisition date

“The virtual classroom was engaging and it felt like a classroom training” ~ HR, International Investment Bank

Virtual Classroom

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

View video to get a flavour of the course

What is a Virtual Classroom

Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT's Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer's ability to see a selection of their participants' faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.

Course trainers

Prerequisite 

A solid understanding of the topics covered by our course M&A Modeling is required.