Overview A merger is the combination of two businesses, while an acquisition is the purchase of the ownership of one business by another. Mergers & Acquisitions models (M&A) involve analysis for scenarios in which one company (the Buyer) proposes to offer cash or its own shares in order to purchase the shares of another company (the Seller or the Target). Reasons for M&As M&A may increase the value for the buyer by creating an important value driver known as Synergies (ways to increase profit / earnings through an acquisition), among other reasons. Various reasons can lead to an M&A transaction:...
Definition of financial modeling
A financial model is an excel spreadsheet that projects the 3 financial statements of a business into the future. The three financial statements are the income statement, balance sheet, cash flow statement which are based historical data and expected value drivers.
Financial accounting statements are prepared for the benefit of those outside the company.
Are you profitable?
Do you collect your “net profit”?
What are you worth?
Do you collect your “net worth”?