Finance of Mergers and Acquisitions: Valuation and Pricing

Instructor: Heitor Almeida

Intermediate Level • 2 weeks at 10 hours a week • Flexible Schedule

What You'll Learn

  • ✓Use valuation tools to find and design value-enhancing M&A deals.
  • ✓Forecast cash flows and estimate discount rates using real world data.
  • ✓Determine the net present value (NPV) of an M&A deal for both the acquirer and the target.
  • ✓Value M&A synergies using both the management and the market’s perspectives

Skills You'll Gain

Corporate Finance
Business Valuation
Mergers & Acquisitions
Market Data
Capital Markets
Financial Modeling
Business Strategy
Cash Flows
Financial Analysis
Private Equity

Shareable Certificate

Earn a shareable certificate to add to your LinkedIn profile

Outcomes

  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
  • Earn a shareable career certificate

There are 5 modules in this course

You will learn the basic terminology of M&A, which we will use throughout the course. You will also learn why M&A deals happen, and how to identify drivers of M&A that are truly value-enhancing. Finally, you will study the history of M&A and learn key facts about previous M&A waves.

What determines a company’s stock price? Placing a value on companies is a key tool for M&A analysis. This module focuses on the main methods available to estimate stock prices, including discounted cash flow valuation and multiples-based valuation. You will learn these tools using the most up-to-date Finance theory and real-world examples.

Valuation analysis is a major part of the work that investment banks do when advising companies involved in M&A deals. You will learn that both target and acquirer valuation matter, and why. This module also focuses on what is special about the valuation and pricing of non-publicly traded targets. Finally, you will learn how to best use transaction multiples in the valuation of M&A deals.

This module starts with how to place a value on synergies using cash flow forecasts provided by management, and also using the stock market reaction to a new M&A deal. Next, you will also learn how to relate synergies to the premium paid for targets and how to calculate the net present value (NPV) of a deal. You will also learn the specifics of hostile takeover deals with a focus on governance, legal, and valuation issues.