Mergers & Acquisitions (M&A) Financial Model

M&A financial model providing transaction analysis, valuation, deal financing, synergies, and accretion/dilution insights to support acquisition decisions.

, ,
, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

A merger or acquisition (M&A) transaction involves the combination of two businesses through the acquisition of one company by another or the merger of two companies into a single organization. M&A transactions are typically evaluated based on the purchase price, transaction financing, expected operating synergies, purchase accounting impacts, pro forma financial performance and the potential value created for shareholders.

This M&A Financial Model provides a comprehensive framework for analyzing a potential acquisition between an Acquirer and a Target company. The model combines the standalone historical and forecast financial statements of both companies with transaction-specific assumptions to calculate the purchase price, financing structure, sources and uses, purchase accounting adjustments, expected synergies and the resulting pro forma financial statements.

The model also evaluates the impact of the transaction on key financial metrics, including revenue, EBITDA, net income, EPS accretion / dilution, leverage and valuation. Standalone and pro forma DCF analyses are included to support the assessment of the transaction and its potential financial impact.

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

• General Setup & Transcation Assumptions
Central input section containing the principal transaction assumptions, including Acquirer and Target information, transaction timing, share prices, takeover premium, purchase price financing, debt rollover, transaction fees, synergy assumptions and Target fair value adjustments. The tab also calculates the transaction Sources & Uses.

• Forecast Scenarios
Operating and financial assumptions used to forecast the standalone financial statements of the Acquirer and Target, including revenue growth, operating costs, working capital, capital expenditure, depreciation, amortization, interest and taxation assumptions.

• Acquirer & Target Models
Standalone three-statement financial model for the Acquiring and Target company, incorporating historical financial information, forecast financial statements and the supporting schedules required for the transaction analysis.

• Pro Forma Model
Consolidated post-transaction financial model combining the Acquirer and Target while incorporating transaction financing, purchase accounting adjustments, debt rollover, new debt and equity issuance, transaction costs and expected revenue and cost synergies.

• Close Summary
Detailed transaction closing analysis presenting purchase price and enterprise value, Sources & Uses, cash requirements, debt and equity financing, transaction fees, shares issued, purchase price allocation and closing balance sheet adjustments.

• DCF Models
Discounted Cash Flow valuation analysis for the standalone businesses and combined company, including enterprise value, equity value and implied value per share based on user-defined discount rate and terminal value assumptions.

• Executive Summary

A high-level transaction dashboard presenting the key deal terms and financial outputs, including:

• Purchase Price and Takeover Premium
• Financing Structure, Pro Forma Capitalization, SYnergies
• EPS accretion / dilution
• EBITDA and Net Income development
• Leverage & Valuation Metrics
• Dashboard

Detailed instructions for the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.

No matter if you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!

If you, however, experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.

If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.

You must log in to submit a review.