|
|
Business Valuation & Financial Modelling
DAG I
ANALYSIS OF COMPARABLE COMPANIES
Select the sphere of comparable companies
Identify key characteristics of the target for comparison purposes
Screen for comparable companies
Locate the necessary financial information
SEC filings: 10-K, 10-Q, 8-K, and proxy statements
Equity research
Press releases and news runs
Financial information services
Summary of financial data primary resources
Spread key statistics, ratios and trading multiples
Calculation of key financial statistics and ratios
Supplemental financial concepts and calculations
Calculation of key trading multiples
Benchmark the comparable companies
Benchmark the financial statistics and ratios
Benchmark the trading multiples
Determine valuation
Valuation implied by Enterprise Value (EV)/EBITDA
Valuation implied by Price/Earning (PE)
Key pros and cons of analysis of comparable companies
DAG II
ANALYSIS OF COMPARABLE TRANSACTIONS
Select the sphere of comparable acquisitions
Screen for comparable acquisitions
Examine other considerations
Locate the necessary deal-related and financial information
Public targets
Private targets
Summary of primary SEC filings in M&A transactions
Spread key statistics, ratios and trading multiples
Calculation of key financial statistics and ratios
Calculation of key trading multiples
Benchmark the comparable companies
Determine valuation
Key pros and cons of analysis of comparable transactions
ANALYSIS OF DISCOUNTED CASH FLOW (DCF)
Study the target and determine key performance drivers
Project free cash flow
Considerations for projecting free cash flow
Projection of sales, EBITDA and EBIT
Projection of free cash flow
Calculate Weighted Average Cost of Capital (WACC)
Determine target capital structure
Estimate cost of debt
Estimate cost of equity
Calculate WACC
DAG III
ANALYSIS OF DISCOUNTED CASH FLOW (DCF)
Determine terminal value
Exit multiple method
Perpetuity growth method
Calculate present value and determine value
Calculate present value
Determine valuation
Perform sensitivity analysis
Key pros and cons of analysis of Discounted Cash Flow (DCF)
LEVERAGED BUY-OUTS (LBOs)
Key participants
Financial sponsors
Investment banks
Bank and institutional lenders
Bond investors
Target management
Characteristics of a strong LBO candidate
Strong cash flow generation
Leading and defensible market positions
Growth opportunities
Low capex requirements
Strong asset base
Proven management team
Economics of LBOs
Return analysis: internal rate of return (IRR)
Return analysis: cash return
How LBOs generate return
How leverage is used to enhance returns
Primary exit/monetization strategies
Sale of business
Initial Public Offering (IPO)
Dividend recapitalisation
Below par debt repurchase
LBO financing: structure
LBO financing: primary sources
Bank debt
High-yield bonds
Mezzanine debt
Equity contribution
LBO financing: selected key terms
Security
Seniority
Maturity
Coupon
Call protection
Covenants
Term sheets
LBO financing: determine financing structure
DAG IV
ANALYSIS OF LEVERAGED BUY-OUT (LBO)
Locate and analyse the necessary information
Build the pre-LBO model
Build historical and projected income statement through EBIT
Input opening balance sheet and project balance sheet items
Build cash flow statement by means of investing activities
Input transaction structure
Enter purchase-price assumptions
Enter financing structure into sources and uses
Link sources and uses to balance sheet adjustments columns
Complete the post-LBO model
Build debt schedule
Complete pro forma income statement from EBIT to net income
Complete pro forma balance sheet
Complete pro forma cash-flow statement
DAG V
LEVERAGED BUY-OUT (LBO) ANALYSIS
Perform Leveraged Buy-Out (LBO) analysis
Analyse financing structure
Perform return analysis
Determine valuation
Create transaction summery page
SELL-SIDE MERGERS & ACQUISITIONS (M&A)
Auctions
Organisation and preparation
First round
Second round
Negotiations
Closing
Negotiated sale
DAG VI
BUY-SIDE MERGERS & ACQUISITIONS (M&A)
Buyer motivation
Synergies
Cost synergies
Revenue synergies
Acquisition strategies
Horizontal integration
Vertical integration
Conglomeration
Form of financing
Cash on hand
Debt financing
Equity financing
Debt vs. equity financing summary - acquirer perspective
Deal structure
Stock sale
Asset sale
Buy-side valuation
Football field
Analysis at various prices
Contribution analysis
Merger consequences analysis
Purchase price assumptions
Balance sheet effects
Accretion/dilution analysis
acquisition scenario's: 50% stock/50% cash, 100% cash, 100% stock
|
Meer resultaten:
Gevonden in andere categorieën:
|
|
|
Terug
Beroepen