Bank transaction analysis intermediate
Course
Inhouse
Description
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Type
Course
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Methodology
Inhouse
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Class hours
1h
This course looks at: Comparable transaction analysis. Static balance sheet analysis. Earnings per share dilution/accretion. Dynamic merger modelling. Discussion of consolidation in the banking sector
About this course
None
Reviews
Course programme
- Comparable transaction analysis
- Static balance sheet analysis
- Earnings per share dilution/accretion
- Dynamic merger modelling
- Discussion of consolidation in the banking sector
- Historical transaction analysis: premiums paid and transaction multiples
- Cost and revenue synergies
- Good deals vs. bad deals: timing, price, synergies and integration challenges
- M&A analytical tools:
- Transaction multiples
- Static balance sheet analysis
- EPS dilution / accretion
- Dynamic merger modelling
- Modelling the pro-forma balance sheet of the combined entity
- Financing bank acquisition: importance of hybrid capital
- Capital ratios pre and post acquisition
- Acquiring bargains and positive impact on capital ratios
- Will an acquisition be EPS dilutive or accretive?
- Impact of synergies and restructuring costs
- Impact of financing
- EPS dilution / accretion over time
- Building a dynamic model for the combined entity incorporating forecasts for bidder and target
- Value creation as target standalone value + synergies - price paid
- Will bidder''s share price increase to reflect value creation?
- Further impetus to banking consolidation and changing competitive landscape
- Impact of different types of government bailouts
- Key due diligence questions: identifying bargains
- Strategic questions: universal banking model vs pure commercial or investment bank player
Bank transaction analysis intermediate