What You’ll Learn In This Video
You’ll learn how to calculate revenue and expense synergies for the buyer and seller in an M&A deal in this lesson, and you’ll see firsthand how to use a combination of press releases and equity research to estimate potential synergies for the $16 billion United / Goodrich deal.
In this third lesson, you’re going to learn how to calculate revenue and expense synergies in an M&A deal and how to make reasonable estimates with limited information.
We’ll be using United Technologies’ $16 billion acquisition of Goodrich Corporation for our example here, and you’ll learn even more since this is a very “real-world” example.
You’ll see how even when there’s limited information, you can still estimate how much up-side there is to a deal like this.
You can follow along using the “Before” Excel file above and then check your work with the “After” Excel file.
Coming up next, you’ll get to hear more about the complete financial modeling program from some recent customers, and how it helped 3 customers win 6 investment banking and private equity offers.
Files & Resources
- WSJ Article on Analyst Reaction to Deal
- United Technologies - Equity Research
- United Technologies - 10-K
- Goodrich - Equity Research
- Goodrich - 10-K
- Bloomberg - Press Release on Deal
- Financial Times Article on Deal with Synergy Estimates
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