You can sensitize key model assumptions like price paid, premium paid, and the amount of cash, debt, or equity used in the acquisition, etc. You can also sensitize synergies as there is often a large variance in what that can be. Finally, you can sensitize key operating metrics for the target compan...

Horizontal acquisitions tend to be the most effective acquisition strategy. A horizontal acquisition strategy involves buying businesses that offer similar product / service offerings to cross-sell to existing customers, expand into new markets or geographies, enhance existing market position / shar...

Strategic Financial sponsors / private equity: buying businesses with significant debt to amplify return for investors and reduce initial equity investment...

...

LBO models are typically built by private equity firms or for private equity (PE) firms trying to do a leveraged buyout; they involve 3 statements and are quite time consuming. DCFs are much more common for most non-PE companies, and most of a bank’s clients are non-PE. They typically involve fore...

No, unlevered free cash flows (UFCF) do not account for interest income or interest expense. Unlevered free cash flows are before the effects of debt. Therefore, there is no tax shield from interest. However, there is a tax shield from depreciation, since unlevered free cash flow does include deprec...

These parts take up time since typically, separate models and schedules are built for them. However, they have relatively less of an impact on the valuation output compared to revenue growth, EBITDA margin expansion, WACC, and terminal value.Also, for public companies, costs can be consolidated into...