Originally published: 25/08/2022 15:15
Publication number: ELQ-62241-1
View all versions & Certificate
Publication number: ELQ-62241-1
View all versions & Certificate
Merger & Acquisition Valuation Analysis Model with Multiple Targets Comparison
The objective of this model template is to provide users with a comprehensive and high dynamic M&A valuation model with multiple targets comparison.
Description
The objective of this model template is to provide users with a comprehensive and high-dynamic M&A valuation model with multiple target comparisons.
Normally the buyer will have more than one M&A candidate analyzing and comparing the benefits and profitability between them. However, the traditional M&A templates often allow one target input. Thus, the users should have several M&A models and compile the results of those models for comparison.
This model facilitates the users to have several targets’ financial models in one excel file and find out the deal performance when involving distinct targets by simply selecting the target they want.
In each target model, scenario options also are established in order to let the users set up different circumstances according to their case.
In the model, we also established synergy scenarios. Users could choose the proper one or could modify them according to their own assumptions.
In order to let users easily manage the template, in sheet “Instruction,” we explain the structure, important notice, and the steps of adding more target models to the model.
The model is truly a comprehensive, high-dynamic M&A valuation template (especially for multiple targets comparison) and will be definitely a helpful tool for both investment analysis and decision-making purposes.
Following the best practice of modeling, the model includes sheets “Deal assumptions &outputs”, “Pro forma Model”, “Acquirer Model”, “Target1 model”, “Target2 model,” and “Target3 model”.
Sheet “Deal assumptions &outputs” displays all the deal assumptions, calculation of purchase price, calculation of goodwill, Purchase price allocation, Closing Balance Sheet, and Accretion/dilution analysis.
Sheet “Pro forma Model” performed the integration of the financial forecast of the acquirer and the target selected.
Sheet “Acquirer Model” demonstrates the buyer’s standalone financial statements forecast and DCF valuation. Assumptions scenarios are allowed in this model.
Sheets “Target1 model”, “Target2 model,” and “Target3 model” display the historical financial statements data, financial forecast, and DCF valuation of each target company.
The model is fully customizable and dynamic. All inputs in color BLUE could be modified according to users’ real cases.
IMPORTANT NOTES: in case of adding more target models to the template, the users should follow the steps explained in sheet “Instruction.” In order to secure the model works correctly, all target model structures should be consistent.
The template could work well when switching between the target since the use of the excel function INDIRECT and the table “target toggle use,” which are located both in “Deal Assumption & Outputs” and “Pro forma Model.” In the event of modifying the structure of the target model is a must, the information in Table “target toggle use” should be updated.
The template is greatly user-friendly either for professional analysts or for users with little experience in financial modeling since its simple design pattern and easy-to-follow logic.
To guarantee the users’ satisfaction, the model does not place any complicated formulas or VBA code. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly priority.
Please feel no hesitation in contacting us if you experience any problems when using the models provided.
In addition, if you need a customized model for your specific business, please just let us know, and we would be happy to help you with this.
The objective of this model template is to provide users with a comprehensive and high-dynamic M&A valuation model with multiple target comparisons.
Normally the buyer will have more than one M&A candidate analyzing and comparing the benefits and profitability between them. However, the traditional M&A templates often allow one target input. Thus, the users should have several M&A models and compile the results of those models for comparison.
This model facilitates the users to have several targets’ financial models in one excel file and find out the deal performance when involving distinct targets by simply selecting the target they want.
In each target model, scenario options also are established in order to let the users set up different circumstances according to their case.
In the model, we also established synergy scenarios. Users could choose the proper one or could modify them according to their own assumptions.
In order to let users easily manage the template, in sheet “Instruction,” we explain the structure, important notice, and the steps of adding more target models to the model.
The model is truly a comprehensive, high-dynamic M&A valuation template (especially for multiple targets comparison) and will be definitely a helpful tool for both investment analysis and decision-making purposes.
Following the best practice of modeling, the model includes sheets “Deal assumptions &outputs”, “Pro forma Model”, “Acquirer Model”, “Target1 model”, “Target2 model,” and “Target3 model”.
Sheet “Deal assumptions &outputs” displays all the deal assumptions, calculation of purchase price, calculation of goodwill, Purchase price allocation, Closing Balance Sheet, and Accretion/dilution analysis.
Sheet “Pro forma Model” performed the integration of the financial forecast of the acquirer and the target selected.
Sheet “Acquirer Model” demonstrates the buyer’s standalone financial statements forecast and DCF valuation. Assumptions scenarios are allowed in this model.
Sheets “Target1 model”, “Target2 model,” and “Target3 model” display the historical financial statements data, financial forecast, and DCF valuation of each target company.
The model is fully customizable and dynamic. All inputs in color BLUE could be modified according to users’ real cases.
IMPORTANT NOTES: in case of adding more target models to the template, the users should follow the steps explained in sheet “Instruction.” In order to secure the model works correctly, all target model structures should be consistent.
The template could work well when switching between the target since the use of the excel function INDIRECT and the table “target toggle use,” which are located both in “Deal Assumption & Outputs” and “Pro forma Model.” In the event of modifying the structure of the target model is a must, the information in Table “target toggle use” should be updated.
The template is greatly user-friendly either for professional analysts or for users with little experience in financial modeling since its simple design pattern and easy-to-follow logic.
To guarantee the users’ satisfaction, the model does not place any complicated formulas or VBA code. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly priority.
Please feel no hesitation in contacting us if you experience any problems when using the models provided.
In addition, if you need a customized model for your specific business, please just let us know, and we would be happy to help you with this.
This Best Practice includes
Full EXCEL MODEL
