Financial Modeling
Merger Financial Model: What It Is, Structure and Main Uses
A merger financial model, known as a merger model, is a tool used to project the impact of a merger or acquisition on the acquiring company’s financial position and performance. The model starts with the standalone forecasts of the acquirer and the target company and incorporates the purchase price, financing, accounting adjustments and expected synergies […]
Leveraged buyout model: definition, structure and debt complexity
A leveraged buyout model, or LBO model, is used to analyse the acquisition of a company financed with a significant proportion of debt alongside equity contributed by investors. Its purpose is to assess the business’s ability to meet its financial obligations and estimate returns on invested equity under different operating, financing and exit scenarios. Leverage […]
Integrated Financial Models: What They Are, Structure and Main Uses
An integrated financial model is a tool that projects a company’s three main financial statements in a connected manner: the income statement, the balance sheet and the cash flow statement. This type of model is commonly known as a three-statement model. Its purpose is to analyse how operating, investment and financing decisions affect the business’s […]
