CFA Society Chicago Events

Event Detail

Wall Street Training: M&A Deal Structuring & Merger Modeling Basics (Limited Space)

Date, Time, and Location:
Wednesday, June 14, 2017 (add this event to your Outlook Calendar)
9:00 am - 5:00 pm
The Standard Club, 320 S. Plymouth Court, Chicago, IL  60604   (Driving Directions)

Learn about mergers and acquisitions and how deals are structured. The first half of this course focuses on the mergers and acquisitions process and the basics of deal structures, presenting the main tools and analyses that M&A investment bankers and acquirers utilize. It covers the following modules: (i) in-depth analysis of the entire M&A process, including due diligence and legal issues; (ii) common structural issues including cash vs. stock, upfront payments vs. earn-outs, and stock vs. asset deals; (iii) crucial merger consequence analysis including detailed accretion/dilution and contribution analyses; and (iv) detailed analysis of transaction case studies to illustrate various deal structures and demonstrate detailed alternative earn-out structures and methodologies.

The second half of this course builds on the first half and is hands-on, interactive, Excel-based and covers different ways to model out financial combinations. Different techniques are covered including the most basic and widely used back-of-the-envelope method, accretion / dilution and more robust analyses. Build dynamic models that account for different transaction structures, learn how to sensitize financial projections and the financial impact on a transaction and construct a pro forma merger model. Calculate estimated combined income statement for target and acquiror, key pro forma balance sheet items, cash flow for debt repayments and other relevant items in a merger and acquisition context.

Register: Online

Learning Goals:

M&A Deal Structuring:

  • Review of various deal considerations and deal structuring options (cash vs. stock)
  • Common structural issues in a transaction (stock vs. asset)
  • Buyer and seller preferences for various deal structures and rationale
  • Tax implications of transactions based on deal structure and IFRS #3 goodwill amortization
  • Merger consequence analysis including accretion / dilution and financial implications of a deal
  • Analysis of breakeven PE for both 100% stock and 100% cash considerations

Accretion / Dilution Modeling:

  • Build dynamic merger consequence analysis (accretion / dilution) incorporating the following:
  • Synergies switch, cash vs. stock sensitivity
  • Amortization of goodwill switch (depending on purchase price allocation)
  • Common structural issues: Stock vs asset deals
  • Tax implications of transactions based on deal structure and IFRS #3 goodwill amortization
  • Analysis of breakeven PE for both 100% stock and 100% cash considerations
  • Calculate pre-tax and after-tax synergies / cushion required to breakeven

Simple Merger Modeling:

  • Construct a merger model, simple combination of Income Statement for target and acquiror
  • Project simple stand-alone Income Statement for both target and acquiror
  • Analyze selected balance sheet figures and ratios and multiples
  • Estimate target valuation and deal structure
  • Calculate selected Pro Forma balance sheet items
  • Combine target and acquiror's Income Statement and estimated synergies
  • Calculate cash flow for debt repayments to estimate debt repayments and cash balances
  • Compute interest expense and interest income based on paydowns
  • Calculate accretion / dilution and credit ratios

Prerequisite: This course focuses specifically on structuring M&A transactions. To obtain the desired financial background and valuation concepts, the "Corporate Valuation Methodologies" class is highly recommended as a precursor. Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals is required. The "Advanced Financial Modeling - Core Model" class is recommended, but not required. NOTE: Laptops will not be provided.

To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program. Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective. Laptops will not be provided.

*Please note that Macs are not ideal for this class but still can be used. For additional information and requirements please contact the CFA Society Chicago office at info@cfachicago.org

Fee*:
Members - $495
Non-Members - $595
Student-Members - $125 (Limited seats available)
*Function tickets cannot be used for this event

CFA Institute Qualified Activity: Eligible for 7 credit hours

Attire: Business Casual

Menu: Lunch Buffet (Vegetarian choices will be available)

Registration: Register online below

Hosted by: Education Advisory Group

Agenda:
8:30 am - 9:00 am - Registration
9:00 am - 5:00 pm - Seminar

Instructor: Hamilton Lin, CFA
Hamilton Lin, CFA, Founder & CEO of Wall St. Training, has a broad background in investment banking and mergers and acquisitions. His responsibilities have included analyzing, structuring and negotiating mergers & acquisitions. Lin custom-builds and develops all of the financial and merger models that he uses which have become corporate and departmental standards. Lin has closed over two dozen transactions and has diverse industry experience ranging from oil & gas to insurance to asset management and related sectors.

About Wall St. Training:
Wall St. Training provides professional financial training solutions to Wall Street through hands-on classroom training and customized corporate training programs for financial analysis which take a hands-on, interactive, practical, non-theoretical approach. Wall Street Training's clients include Bank of America/Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank, Fidelity, GE, Goldman Sachs, JPMorgan, Morgan Stanley, TPG, and many others. For more information: www.wallst-training.com and www.wstselfstudy.com.

*Special Notes Regarding Fees:
*Special Notes Regarding Fees: Student rate only available to students approved as a Student-Member of CFA Society Chicago for 2017-2018. Credit card is required to guarantee ALL reservations, no function tickets accepted. Day-of-event registrations accepted on-site only if applicable and space available. There is a $10 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00 pm, June 8.

Passport Program
Members of any CFA society may attend at the CFA Society Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.

CFA Institute CE Qualified Activity
This program qualifies for credit under the guidelines for the CFA Institute Professional Development Program.

Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.