M&A Model 1

This podcast is a lecture-style Q&A session on mergers and acquisitions (M&A), primarily aimed at Queen's University students. The instructor, Krishna Agarwal, details M&A processes, including mini and full merger models, financing methods (cash, debt, equity), and synergy analysis (cost, revenue, financing, tax, operating working capital). He emphasizes the importance of considering the after-tax impact of synergies and the complexities of purchase price allocation, including deferred tax liabilities. A key takeaway is that while accretion/dilution analysis is commonly used, a discounted cash flow (DCF) model provides a more robust long-term valuation approach for buy-side M&A decisions. The session also touches upon practical aspects like breakup fees and go-shop provisions.