name all the models
can someone name all the models on a typical M&A deal that are done. where do synergies come into play. thanks
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you and your fucking models...srsly, ask around your friends who's done BB SA or ask your school's MBA students who's done IBD. wtf man.
Seriously, why are you even fucking posting? Of all the people that DO NOT POST on a thread, they fall into 1 of 2 categories:
1- they don't know the answer 2- they know the answer, but don't have time to post it
You obviously have the time to post a response, just not the answer. So either you don't know, or you're too fucking stupid to post anything constructive because you're too good for all the other aspiring monkeys on here. Which brings me to ask myself, why the fuck are you here? They d-bag college kids obviously don't know their ass from their elbow, and you're so fucking knowledgeable. At least the other kids not contributing aren't acting like imbeciles. They keep their heads down and ask a question if they have one.
Never has the Monkey Status been more accurate, you truly are a fucking baboon.
I wish I knew where you were summering, I'd make your life hell. Although Im sure you will emanate the same level of dick-wad tooldom in your internship and you analysts and associates will take it upon themselves to give you hell. You reek of douchbaggery and you are without a doubt the stereotypical douche bag finance intern.... I'm sure you aspire to one day be This-is-how-we-roll AJ, or Ritchie Bottles.
London, I'm sure I'm not the only one on this forum but I think you should just keep your comments to yourself... you really add no value to any board... Let's get you into some front office position on the street before you comment...
Don't you know? London is too good for the street. He's already got a spot as a SUMMER ANALYST at a BULGE BRACKET in LONDON. Really shouldn't insult him, he's a major BSD and will probably blacklist you
You have to watch out. He might poke your eye out.
In that case, London get me my coffee and file my scrap paper...
can someone help please? in which model do you account for synergies? name the typical models/valuations used on an M&A deal?
The way I've seen it done, and I'm no M&A expert is (and this is very simplified)...
---Company B RevPF Balance sheet combines 2 companies
IS, CF, BS for the combined company
in the income statement, you have a revenue build-up: ---Company A Rev
---Combined Company Rev
---Company B EBITDA ----Company B EBITDA Margin (this is the driver)
---Synergies (this basically captures the $ value of the synergies per year)---Combined Company EBITDA (A EBITDA + B EBITDA + Synergies)
Theres some other stuff that is entailed in getting to your CASH EBITDA... cost to achieve synergies for example.
As for how to come up with the synergy value... that something that you would probably have to work closely with management to approximate the cost savings from a merger..... OR, you could simply back into it by saying Dick Whad, CEO of Company A, is willing to pay $600 million for company B. If we assuming that purchase price, we would need an additional $90M in LTM EBITDA to justify that price, so Pro-Forma LTM Synergies are $90M...
You'd have a host of other things tying into the whole thing....
maybe a tax schedule, a WC schedule, D&A schedule...
Hoping this will get you started and other people will chime in to elaborate on certain parts or correct me.
Couldn't have said it better myself Marcus... Now throw that into an LBO and we're talking serious work...
Some banks do the synergies line by line to show a proforma full p&l... i prefer this one, its easier to run the margins going forward...
I'll send you a couple of my synergy models.
those M&A models?
would greatly, greatly appreciate it.
LondonE1. I know what bank you are interning at. They by no means are considered a BB now. They were once. But the market has ravaged them terribly. And in my opinion the worst is yet to come for them. Whilst I have no personal beef against you, and you might be a cool guy in real life, I have to urge to chill out, take a step back, and just relax. Peace.
Just my 2c.
haha, telling it for what it's worth
.
The Giselle-Aliazz pro forma synergy model is my favorite, though highly difficult to construct. sigh.
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