Acquisition Modelling Simulation

The Acquisition Modelling Simulation plunges participants into the high-stakes world of mergers and acquisitions tasked with analyzing a target company, building a comprehensive financial model, and executing a strategic acquisition for the client.

Acquisition Modelling Simulation Overview

In the Acquisition Modelling Simulation, participants step into the shoes of an investment banking analyst or associate. They are presented with a live case: a publicly-traded or private company is seeking to acquire a strategic target to enhance its market position, diversify its revenue streams, or achieve cost synergies.

The simulation revolves around a single, critical deliverable: a fully-integrated, three-statement acquisition model. Participants will start from scratch, importing historical data, making key assumptions about the target's future performance, and ultimately modeling the impact of the acquisition on the acquirer's financial statements.

The core challenge is to determine a justifiable valuation range, decide on the optimal financing mix (cash, debt, stock), and quantify the accretion/dilution to earnings per share. Success is measured by the accuracy of their model, the soundness of their strategic rationale, and the value created for the acquiring company's shareholders.

Acquisition Modelling Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

M&A Deal Rationale and Strategy
Financial Statement Analysis
Financial Modelling and Forecasting
Discounted Cash Flow (DCF) Analysis
Comparable Company Analysis (Comps)
Precedent Transaction Analysis
Acquisition Mechanics
Financing the Deal
Accretion/Dilution Analysis
Credit Metrics and Leverage
Synergy Modelling

Gameflow

What Participants Do

In the simulation, participants will:

Analyze a comprehensive company information packet (CIM) for the target company.
Build a three-statement financial model (Income Statement, Balance Sheet, Cash Flow Statement) for the target from the ground up.
Forecast the target's future revenue, expenses, and working capital needs.
Perform a full business valuation using DCF, Comparable Companies, and Precedent Transactions.
Model the acquisition, including the creation of goodwill and intangible assets.
Evaluate different financing scenarios (all-cash, all-stock, mixed) and their impact.
Conduct a detailed accretion/dilution analysis to determine if the deal creates value.
Prepare a summary of findings and a recommendation for the "Board of Directors".

Learning Objectives

By the end of the simulation, participants will be able to:

Construct a professional, three-statement acquisition model in Excel.
Value a company using the three primary valuation methodologies used on Wall Street.
Analyze the strategic and financial merits of a potential acquisition.
Calculate the accretion or dilution of a transaction to the acquirer's EPS.
Assess the impact of different financing structures on the combined entity's balance sheet and credit profile.
Quantify and model potential operational and revenue synergies.
Develop a coherent investment thesis to support an M&A recommendation.
Interpret complex financial data to make informed strategic decisions under time constraints.

How the Acquisition Modelling Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Registration and Team Formation Participants are registered and can form teams or work individually.

2. Access the Platform Participants gain access to our proprietary simulation platform, which includes the case study, financial data, and a structured Excel environment.

3. Self-Paced Learning Modules Work through guided modules that cover financial modeling, valuation, and M&A mechanics.

4. Hands-On Modelling Using the provided data, participants will build the acquisition model step-by-step, from historical analysis to the final accretion/dilution output.

5. Scenario Testing The simulation allows for testing different assumptions (growth rates, synergy levels, purchase premiums) and financing options to see their immediate impact on the deal's outcome.

6. Final Submission and Assessment Submit your completed model and a brief executive summary. Your work is then assessed based on technical accuracy, model integrity, and the logic of your conclusions.

Frequently Asked Questions

What are the technical requirements to run the simulation? All you need is a modern web browser and Microsoft Excel. The simulation is cloud-based and accessible 24/7.
How long does it take to complete the simulation? The simulation is designed to be completed in approximately 10-15 hours. It is self-paced, so participants can fit it around their schedules.
Is this simulation relevant for careers outside of investment banking? Absolutely. The skills learned are directly applicable to private equity, corporate development (in-house M&A), equity research, and strategic consulting roles where evaluating acquisitions is key.
Do I need to download any special software? No. The simulation runs entirely through your browser. Your financial modeling is done in a web-based version of Excel or your own local copy, with no installations required.
How is this different from a traditional finance course? This is applied learning. Instead of just learning theory, you are immediately applying concepts by building a real-world financial model from scratch, mimicking the exact tasks performed by analysts.
Can this simulation be used for corporate training? Yes, we offer tailored versions for corporate training programs, perfect for developing the financial and strategic skills of analysts in corporate development, FP&A, and leadership teams.
What kind of support is available during the simulation? Participants have access to a knowledge base with video tutorials and written guides. For academic and corporate partners, dedicated support and debrief sessions can be arranged.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Review of the final financial model for accuracy, formula integrity, and correct application of valuation and M&A mechanics.
Evaluation of the participant's ability to run different financing and synergy scenarios and provide a logical, data-driven justification for their recommended course of action.
Assessment of the participant's ability to distill complex financial analysis into a clear, concise, and persuasive summary for a senior management audience.

Assessment may incorporate peer and self-review components, facilitator scoring, and debrief discussion. Results may feed into grades, executive feedback, certification or development plans.