How to combine two standalone excel models to create a Merger Model
Originally published: 27/04/2018 14:04
Last version published: 16/10/2018 09:18
Publication number: ELQ-82428-2
View all versions & Certificate

How to combine two standalone excel models to create a Merger Model

Video and 2 Excel files that help you know how to combine two models and create a merger model.

In both M&A and LBO models, the process generally involves using a standalone model you have created previously, and then adding a new financial structure or combining the standalone model with another. If you decide to combine models, it can be a good idea to add transaction assumption analysis to begin the analysis. This should include consideration paid for the merger (i.e. amount paid to current equity holders), the manner in which the transaction is financed, the amount of debt assumed, the amount and terms of new debt issued, what happens to cash on the balance sheet and other related items. It can also include assumptions for synergies and present the premium on the transaction as well as the EV/EBITDA for the acquisition.

The video and two Excel files describe how to create a transaction assumptions page using an actual merger from a while back - one that led to bankruptcy due to the level of debt along with reduced air freight prices and maintenance capital expenditures.

The Excel Spreadsheets are the following:
- Example Corporate Finance Model
- Example Hawk Merger Model

In addition, there is a video tutorial attached. This serves to ilustrate and demonstrate how to use the tool for the user.

This Best Practice includes
2 Excel Spreadsheets + 1 Video

Acquire business license for $5.00

Add to cart

Add to bookmarks


4.8 / 5 (26 votes)

please wait...