What You’ll Learn In This Video
In this tutorial, you’ll learn how to complete your first merger model, how to combine the income statements of the buyer and seller, and how to calculate accretion / dilution. Once again, we’ll use the $16 billion United / Goodrich deal as our case study here.
In this lesson, you’re going to learn how to calculate accretion / dilution in a merger model and tie everything together.
You’ll learn how to combine the income statements from the buyer and seller with the transaction assumptions, and calculate how the combined company’s interest income / expense and shares outstanding change – and the impact on their bottom-line.
We’ll use this analysis to draw some conclusions about the merits of the United / Goodrich deal and whether or not it made sense for both parties.
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
- Bloomberg - Press Release on Deal
- United Technologies - Equity Research
- United Technologies - 10-K
- Goodrich - Equity Research
- Goodrich - 10-K
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