Corporate Transactions and Financial Modelling

The main objective of “Corporate Transactions and Financial Modelling” is for you to acquire a lasting ability to successfully understand, analyze, model, value and creatively think about e.g. LBO, M&A and restructuring activities. Towards this end, we will (1) explore accounting, regulatory, taxation, structural, institutional and process-related aspects of different transaction types, (2) develop advanced valuation and financial statements analysis skills, and (3) discuss (step-by-step) how to prepare full-blown operating and financial Excel models. We use these models to investigate the impact of different deal structures, accounting choices, operating assumptions and financing decisions, e.g. on firm value, liquidity, profitability, returns, and other financial statement ratios. The course draws on basic valuation concepts and financial statement analysis skills taught in your core classes. We advance them in various ways. First, we integrate institutional and process-related details into our study of corporate transactions. Second, we extend accounting, taxation and regulatory knowledge to equip you for deal-specific analysis. Third, in Excel, we work through and understand full-blown M&A, LBO and -time permitting- bankruptcy models (with integrated B/S, I/S and CFS) to study the feasibility of deals. Throughout the course, we use databases that are commonly used by practitioners and place special emphasis on real-world applications. For example, you receive your own FactSet Desktop license including Excel add-in and we incorporate FactSet applications into the course. The course’s overarching goal is for you to obtain an advanced toolbox that helps to succeed in a role in IB, PE, consulting, investment management, corporate management or entrepreneurship with required transaction skills and knowledge. Note: This is not a pure modeling class. Approximately 40-50% of the course content involves modelling. Building an integrated full-blown 3 F/S LBO model from scratch can take an experienced modeler a full day. To use our classroom time efficiently, we will use three pre-built Excel models, discuss them step-by-step, demonstrate selected model-related Excel functions, and you become equipped with a recipe how to create such models from scratch. If you are looking for a pure modelling class, I highly recommend Wall Street Prep’s online modelling classes. You can pace it according to your own modelling speed and build the model while going through the online class.