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Mastering Valuation and Acquisition Modelling

Mastering Valuation and Acquisition Modelling

Duration: 2 days
Course delivery: in person
Location: global
Dates: course schedule
Modelling methodology: SMART
Mastering Valuation and Acquisition Modelling

Mastering Valuation and Acquisition Modelling course overview

Financial modelling of valuations for acquisitions and investments sits at the core of all M&A activity. Getting the reasoning, method or actual calculations wrong during this component of the M&A process can have dire consequences. This training programme will help you master the process and get it right!

Mastering Valuation and Acquisition Modelling focuses on reducing the chance of error by clarifying the lifecycle of the M&A process; what needs to be done, when and what you need to consider. During this two day hands-on course you will learn essential SMART best practice modelling skills and build a complete acquisition model. Your experienced trainer will help you develop your ability to select the right valuation method and apply this with assurance to ensure your calculations are accurate and trustworthy.

What you will take away from this course

  • Master the valuation and acquisition modelling process and build a complete acquisition model
  • Understand the underlining theory, using latest industry insights
  • Extend your knowledge of forecasting techniques for powerful analysis
  • Integrate powerful scenario analysis to instantly return multiple case results
  • Reduce model and valuation risk significantly by utilising SMART best practice methodology
  • Receive on-going post course support via our Trainer Support Hotline





Pre-requisites: None although exposure to financial models in your work role is an advantage.

Is this programme for you?

Yes, this training programme is for you if you are exposed to valuations and acquisition modelling in your work. This hands-on course is focused towards those who develop, use or interpret valuation models, such as strategic investment professionals, corporate financiers and investment fund employees.



Gain essential insight into the role of the financial model in the valuation and M&A process

  • Understand the diverse rationale and drivers for M&A activity
  • Learn the lifecycle of M&A activity, including development of acquisition strategy, valuing target companies and post-merger integration
  • Investigate how companies and business units are valued and methods utilised

Master proven techniques for best practice modelling resulting in better models built faster

  • Learn to work with the powerful and easy to follow SMART best practice modelling methodology
  • Discuss and identify good vs. bad modelling techniques using real-life examples
  • Greatly increase consistency amongst your team in calculation technique and presentation

Develop key theoretical concepts and build modules to free cash flow to firm and equity

  • Distinguish between cashflow to firm and equity and discuss the importance for valuation analysis
  • Build best practice modules of a target company including:
  • Model architecture and assumptions
  • Calculations; revenue, COGS, OpEx, debt
  • Outputs; profit and loss statement

Extend your knowledge of forecasting techniques for powerful analysis

  • Learn about moving average and linear regression forecasting
  • Investigate the often significant role of escalation in forecasted cashflows; nominal vs. real
  • Explore the role of synergies and their potential impact on forecasted cashflows

Improve your modelling with realistic cashflow impact of working capital and related matters

  • Learn how to build working capital into existing models without changing the structure
  • Understand the impact of working capital on the cashflow
  • Discuss common errors in modelling working capital and ways to model around them
Day 2

Finalise financial statements to make a fully integrated three-way model

  • Add capital programme and construct best practice depreciation calculations
  • Complete P&L statement and build balance sheet and cashflow waterfall
  • Explore balance sheet or net asset position and its role in valuation assessment

Calculate the weighted average cost of capital (WACC) using capital asset pricing model (CAPM) for robust valuations

  • Discuss the theoretical underpinnings of CAPM and why it is used
  • Derive the WACC formula and model it in Excel
  • Learn how to estimate betas from actual public market data

Learn key techniques for terminal value analysis in a valuation context

  • Understand why terminal value isn’t appropriate in some valuation models
  • Learn how different factors affect the impact of terminal value on a valuation
  • Calculate terminal value using both perpetual growth model and other methods

Complete a best practice discounted cashflow (DCF) valuation

  • Discuss NPV and IRR, understand from first principals and apply XNPV and XIRR functionality
  • Identify significant errors regularly made in the use and structuring of Excel functions for NPV and IRR
  • Integrate a dividend policy and restrictions into model and understand impact on valuation

Build cross-reference valuation techniques to benchmark your discounted cashflow (DCF) analysis

  • Learn the pros and cons of using any single valuation technique
  • Compare DCF valuation outputs with EBITDA and transaction multiples
  • Review real-life valuation reports to understand how final valuation range is determined

Integrate a powerful scenario manager and enable informed decision making with tornado charts

  • Save critical time and deliver rapid analysis using our approach to scenario management
  • Transform scenarios into yet another way to test the model in all scenarios
  • Build confidence in your analysis through pre-programmed combinations of model inputs
  • Develop tornado charts for efficient sensitivity analysis

Trainer profiles

Corality’s training courses are presented by highly qualified professionals who are both current active industry professionals and experienced trainers.

Our valuation and M&A experts have worked for major investment banks, such as Merrill Lynch and Morgan Stanley, and have backgrounds in complex equity research, private equity, industry and large investment funds covering a full spectrum of sectors from traditional energy to infrastructure via distressed companies and many others. We hand-pick the trainer for each programme to match the M&A focus of our clients.

Meet our trainers

Teaching approach

At Corality we use a full range of teaching techniques and materials to ensure you will receive the best transfer of theory and practical skills.

This course is focused in equal measures on valuation, M&A and acquisition theory and hands-on modelling techniques that can be easily adopted and transferred to your day-to-day work. We strive to maintain an open forum for debate and questions and at key points utilises focused materials to contextualise certain elements of the course, including:

      • Instructive course notes pack
      • Good vs. bad example models
      • Real-life case studies and demo models

Trainer support hotline

Our objective is not just to take you through a two day course and then leave you to your own devices – it is to fundamentally transform your financial modelling skills. This is why your course fee includes post course access to your trainer and the Corality Trainer Support Hotline who will point you in the right direction whenever you have a question.

As part of your course you also get access to all our tutorials, blogs and handy tips & tricks on our website. We look at every course as an ongoing relationship – we want to be by your side as you put your new learning into practice.



Corality’s public training is delivered worldwide.
Call the city closest to you and find out more about how we can help you.

London +44 20 7947 4019 | Perth +61 8 9211 6119 | Sydney +61 2 9222 9222

Singapore +65 6440 8803 | Vancouver +1 604 655 4435


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