Modelling in Excel

Leveraged Buyout Model + M&A

Model (accretion/ dilution)
Joris Kersten, MSc RAB
Location: Kersten Corporate Finance

July 7th 2020

Uden/ The Netherlands
 Topics
In this presentation I will talk about Financial Modelling in Excel.

And then more specific on how to model an “LBO” and how to build a “M&A
model” to assess the “accretion/ dilution” of a M&A deal.

Topics:
• Topic 1: Leveraged Buyout (LBO) Model (July 7th 2020);
• Topic 2: M&A Model - Accretion/ Dilution (July 7th 2020).

• Topic 3: Discounted Cash Flow Valuation (to follow);

• Topic 4: Excel Shortcuts & Business Valuation (to follow);
• Topic 5: Valuation Multiples 1 – Comparable Companies Analysis (to follow);
• Topic 6: Valuation Multiples 2 – Precedent Transaction Analysis (to follow).
About the trainer: Joris Kersten MSc BSc RAB
40 years old, living together with my girlfriend “Debby” and daughter “Floor” and
“Sophie”. Living in Uden (in the South of the Netherlands, about 100 km from city
Amsterdam, close to city Eindhoven).
Work
•Owner of ”Kersten Corporate Finance”, I work as an independent consultant
within the field of Mergers & Acquisitions (M&A);
•Co-owner of ”Samenwerkingsverband Kersten”: Real estate in DIY sector.
•Lecturer Corporate Finance at Tias Business School Tilburg/ Utrecht;
•Lecturer Corporate Finance at Nyenrode Business University in Breukelen;
•Lecturer Finance & Accounting at the Maastricht School of Management (MSM)
(and partner Universities in Peru/ Lima, Mongolia/ Ulaanbaatar, Surinam/
Paramaribo and Kuwait/ Kuwait City);
•Lecturer Corporate Finance at SP Jain School of Global Management in
Sydney/ Australia (and its locations in Mumbai, Dubai and Singapore).
Contact details:
•Trainer Corporate Finance/ Financial Modelling @ AMT Training London/ New
York/ Hong Kong at leading “bulge bracket” Investment Banks; joris@kerstencf.nl
•Trainer Corporate Finance @ Leoron Dubai/ Arab States of the Gulf at leading www.joriskersten.nl
institutions/ corporates in Kuwait, Bahrein, Saudi Arabia, Oman and United Arab +31(0)6 8364 0527
Emirates.
Education
•Education background: Master of Science (MSc) Strategic Management,
Bachelor of Science (BSc) Business Studies, both from Tilburg University (The
Netherlands).
•Registered Advisor Business Acquisitions – tax & legal (RAB);
•Degree in didactic skills in order to lecture at University;
•Right now following the “Executive Master in Business Valuation” to become a
“Registered Valuator” (RV).
 Training programs face to
face @ The Netherlands
The open training programs of Joris Kersten in The Netherlands take
place at the dates below. And for registration just write an email
(joris@kerstencf.nl) or look at www.joriskersten.nl.
1. 28, 29, 30, 31 October 2020 + 2, 3 November 2020: 6 days -
Business Valuation & Deal Structuring. Location: Amsterdam
Zuidas/ The Netherlands;
2. 16, 17, 18, 19 November 2020: 4 days - Financial Modelling in
Excel. Location: Amsterdam Zuidas/ The Netherlands.
Locations for both training programs: Crown Plaza Hotel @
Amsterdam South (“Zuidas”).

NEW - 100% online training program:

• Certificate “Registered Consultant Investment Management”
(RCIM) given out by Kersten Corporate Finance.
In 20 online sessions (in 10 working days) you will learn all on
investment management up to “intermediate level”.
Starting date: January 1st 2021. Training manual available very soon.
 Activities: Kersten Corporate
Finance
Service 1 - Training:
• Providing training in Business Valuation & Financial Modelling all over the globe;
• This at Universities, Investment Banks, Corporates and Financial Institutions;
• Open training programs in Amsterdam/ The Netherlands;
• Inhouse tailor made training programs all over the globe on request.
Service 2 - Consulting:
• M&A deal making in The Netherlands: Preparing valuations, information decks, negotiating LOI,
negotiating share purchase agreement and coordinating due diligence;
• Providing business valuations (DCF, comps, LBOs and M&A models);
• Financial Modelling.

Visiting address:
Kersten Corporate Finance
Gording 67
5406 CN Uden
The Netherlands
www.joriskersten.nl
Phone: +31 (0)6 8364 0527
Email: joris@kerstencf.nl
 Source used

Handbook:
Investment Banking:
Valuation, leveraged buyouts and mergers &
acquisitions.
Second edition (2013). Joshua Rosenbaum &
Joshua Pearl.
Wiley Publishing company.
Topic 1

Leveraged Buyout (LBO)

Model
Source used:
Investment Banking: Valuation, leveraged buyouts and
mergers & acquisitions. Second edition (2013). Joshua
Rosenbaum & Joshua Pearl. Wiley Publishing company.
Leveraged Buyout Analysis
A leveraged buyout (LBO) is the acquisition of a company,
division, business, or collection of assets (“target”) using
debt to finance a large portion of the purchase price.
The remaining portion is financed with an equity
contribution by a financial sponsor (private equity party).
Historically financial sponsors sought a 20% annual
return and an investment exit of 5 years.
In a traditional LBO, debt has typically comprised 60% to
70% of the financing structure, with equity comprising
the remaining 30% to 40%.
Companies with stable and predictive cash flows, as well
as substantial assets, generally represent attractive LBO
candidates due to their ability to support larger
quantities of debt.
Leveraged Buyout Analysis
Cash flow is primary used to repay debt during to time to
which the sponsor acquires the target until the exit.
The debt portion of the LBO consists a broad array of
loans like bank debt, high yield bonds, mezzanine debt
and equity.
LBO analysis is used to check whether the deal is
interesting for a financial sponsor.
The LBO analysis is used to check whether the sponsor
can make the needed returns (e.g. 20%) with a certain
financial projection (operating scenarios), purchase price,
financing structure and exit multiple after a certain
number of years (e.g. 5 years).
Leveraged Buyout Analysis
In sell side advisory I always make the LBO model of the
deal because I want to check how the deal “looks” for a
financial sponsor.
In other words: Is the deal interesting for private equity?
Also in buy side advisory it is interesting to make this
analysis.
For example it is interesting for a strategic party who
wants to buy a certain target to know what competitive
bidders (like private equity) are willing to pay for the
target.
You will never know for sure, but at least you can make
an “educated guess” when you build the LBO model.
LBO model
Income statements
Let’s assume we want to build a model for a certain
target.
Here fore we need financial projections of the
company, these can for example be obtained from a
“Confidential Information Memorandum” (CIM) or
from a “Discounted cash flow model” (DCF) if we
have made the DCF analysis already.
We first need to build the historical and projected
income statements (P&L’s) through EBIT.
You can first start with typing in the numbers you
have received from the CIM and then later on you
can add multiple operating scenarios.
LBO model
The different scenarios can be typed in in a separate
tab in excel and with the “CHOOSE function”, and a
built in “toggle”, you can easily switch between
operating scenarios.
So in first in stance we build the model until EBIT,
because we do not know yet how the deal will be
financed.
So we also do not know yet the interest payments
that need to be taken up in the projected income
statements.
This does not matter for now since we get back to
this later on.
LBO model
Balance sheets
After a start of the estimated P&Ls we need to start
building the projected balance sheets.
The opening balance sheet is typically provided in the
CIM and entered into the model.
And you need to add extra line items for the new
financing structure after the deal.
In order to build the balance sheet after the deal you
need to add two adjustment columns in which you type
in the sources (how the deal is paid) and uses (what is
paid for) of the deal.
And also add a column in which you give the “pro forma
balance sheet”, so actually this is the opening balance
sheet after the deal.
LBO model
Cash flow statements
Of course does a LBO model also need cash flow
statements (CFSs).
We build them through the indirect method starting with
net income and adding depreciation and amortisation
since these are “non-cash” items.
The net income is still not correct, because the right
interest expenses are not yet taken up, but this does not
matter since for now we are just building up the model.
In the CFSs we also need to show the year on year (YOY)
changes in the balance sheet, think about the property,
plant and equipment (PPE) and also the working capital
line items (e.g. accounts receivable, inventories, prepaid
and other current assets, accounts payable, accrued
liabilities and other current liabilities).
LBO model
The amounts of the above line items are forecasted in the
balance sheet also through a separate “assumption tab”.
Together with estimating the operating scenarios in the P&L,
also estimates can be made for the line items in relation to
the working capital.
And with the “CHOOSE-function” in excel and a built in
“toggle” you can switch between scenarios and this also
effects the working capital (and the investments in working
capital in the CFSs).
Also CAPEX (capital expenditures = investments in assets)
need to be taken off as a “cash out” in the CFSs. They are also
the result of the delta on YOY line items in the balance (e.g.
PPE).
And this line item PPE is estimated again in the “assumptions
tab”, for example as a percentage of sales.
The financing section of the CFSs will be still left blanc,
because we have not assessed yet how to finance the deal (in
different financing scenarios).
LBO model
Transaction structure
When we have built the estimated P&Ls, balance sheets
and CFSs it is time to enter the purchase price
assumptions.
To calculate the price of the shares we for example take a
LTM EBITDA (last twelve months) (earnings before
interest tax depreciation and amortisation) times a
certain “multiple”, let’s say for example a multiple of 8.
Then we have calculated the enterprise value (EV).
In order to get from EV to the price for the shares we
need to deduct “net debt”, which consists out of total
debt minus (excess) cash.
Actually here we also need to take the “equity bridge”
with "cash like" and "debt like" items into account, but I
will not get into details about the "equity bridge" here.
LBO model
Then in the LBO model we need to add the sources
and uses. Uses is where we spend the money on for
the acquisition, e.g.:
equity purchase price + repayment of existing debt +
call premiums (if any) + financing fees + transaction
fees for the investment banker or corporate finance
consultant.
These “uses” need to be financed with "sources", for
example:
a revolving credit facility + certain term loans +
notes/ bonds + equity + cash on hand.
LBO model
It is common to fill the model with multiple
“financing structures” since Microsoft excel enables
us to run sensitivity analyses on these different
financing structures.
When we have added the sources and uses we need
to connect them to the balance sheet.
Most likely goodwill will be paid in a transaction. This
simply means that a buyer pays more than the book
value of the “net identifiable assets”.
We need to make these adjustments in the balance
sheet as well.
An example of taking
up the sources and
uses in the balance
sheet is given here.

The example comes

from the book:

Investment Banking:
Valuation, leveraged
buyouts and mergers
& acquisitions of
Joshua Rosenbaum &
Joshua Pearl (exibit
5.15 in the book).

This is the main book I

use in my training
sessions and the
participants receive a
copy of this book
when they register for
my training sessions.
LBO model
Debt schedule
After that we can start filling the model with a debt schedule.
When all the different debt components are modelled we can
then also finish the: P&Ls, balance sheets and CFSs.
This since we then know the interest payments for the P&Ls,
paying back of principal and heights of the debt components
at the end of different years for the balance sheets and CFSs.
For the interest payments we can use the forward Libor Curve
from Bloomberg as a starting point. On top of that a spread is
added for the different debt components.
In a discounted cash flow model we speak of a “free cash
flow”, but you can also see this term back in a LBO model.
In a LBO model the term “free cash flow” means: Cash
available for debt repayments.
LBO model
And in the LBO model it is common to build in a “cash
sweep”, which means that all excess cash, after the
mandatory principal repayments, will be used to pay
back debt.
And of course it makes sense to model in a “minimum
cash amount” that should stay on the balance sheet for
“working capital” purposes.
Further more the debt schedule needs to be modelled
like a “waterfall”, so the cash needs to flow back to the
lenders depending on the level of seniority, e.g. from the
revolving credit facility to the term loans, to the notes/
bonds etc.
After that the P&Ls should be finished with the interest
expenses and the balance sheets and CFSs with the
principal repayments and new debt amounts at the end
of the year.
LBO model
Perform LBO analysis
When your model is complete we want to perform LBO
analysis. First of all we need to know the credit statistics since
the deal is highly leveraged.
So your model needs to show insights on the main credit
statistics like: EBITDA over interest, senior secured debt over
EBITDA, net debt over EBITDA etc.
Of course, this needs to be shown for all the years of your
forecast.
We also need to know what the returns are for the
investment. Here fore we need to take an exit into account.
The common practice for an analyst for modelling practises is
to take (in first instance when you build the model) a similar
exit multiple on EBITDA as the EBITDA multiple on which you
can buy the company.
E.g. when you can buy the shares for 8 times EBITDA
enterprise value, then also model an 8 times “EBITDA year 5”
as exit enterprise value.
LBO model
In most LBO models a “cash sweep” is modelled in as
mentioned before. This way in most models you see an
original equity contribution.
This is the equity contribution the financial sponsor has
put in at the date of the acquisition. Then we assume we
sell the shares again at a certain EBITDA multiple at year
5.
And then we need to deduct the “net debt” level at year
5 as well. What is left is the equity value after year 5.
Imagine you buy a firm with an equity contribution of 20
million euro (the rest is debt) at the date of the
acquisition.
And you then you sell it for 50 million share value at year
5 (enterprise value - net debt). Here you make a cash
return of 2,5 (50 million/ 20 million).
LBO model
This cash return is a number we always need to know. But a
more elegant number is the IRR (internal rate of return).
It basically is the honest yearly return the investor makes. And
it stands for a “discount rate” in which the present value is
exactly zero, so it shows the honest return for an investor.
At the same way as we calculate the cash return we like to
calculate the IRRs of the LBO model for a range of for example
10 exit years.
And then the most important IRR is the IRR with an exit after
year 5 since this is an average holding period for a financial
sponsor.
Personally, I am a big fan of the LBO model and always like to
calculate the IRR of an acquisition since it is so honest.
And you can even take up the LBO “valuation” on the football
field if wanted next to “comps” and “DCF”.
An example of a
football field including
LBO “valuation” is
given here.

The example comes

from the book:

Investment Banking:
Valuation, leveraged
buyouts and mergers
& acquisitions of
Joshua Rosenbaum &
Joshua Pearl (exibit
5.44 in the book).

This is the main book I

use in my training
sessions and the
participants receive a
copy of this book
when they register.
Topic 2

M&A Model -
Accretion/ Dilution
Source used:
Investment Banking: Valuation, leveraged buyouts and
mergers & acquisitions. Second edition (2013). Joshua
Rosenbaum & Joshua Pearl. Wiley Publishing company.
The M&A model – Accretion/
Dilution: An Introduction
The M&A model consists essentially out of two
standalone financial models, one for the acquirer
and one for the target.
These models are summed up in order to form “pro
forma combined financial statements”.
As with a LBO model, historical financial data is
entered into an “income statement (IS) tab” and
“balance sheet (BS) tab” in Microsoft excel.
The M&A model – Accretion/
Dilution: An Introduction
And then assumptions like growth rates, margins,
working capital assumptions etc. that drive income
statements, cash flow statements and balance sheets
are entered into “assumption tabs” in Microsoft
excel.
And an offer price for the shares of the acquisition
and acquisition structure (payment with equity vs
debt, example 50%-50%) data are then entered into
a “transaction summary tab” in excel.
The M&A model – Accretion/
Dilution: An Introduction
After that the financing structure (how the debt part
is built up), allocations of the purchase price
premium (purchase price allocation (PPA)/ goodwill),
assumptions around deal-related depreciation and
amortization (because of asset write ups/ PPA) and
estimated synergies are entered into a tab called
“pro forma assumptions”.
Concerning the financing structure, a special tab is
created in which for each debt instrument key terms
are typed in.
This tab is called “pro forma debt schedule”.
The M&A model – Accretion/
Dilution: An Introduction
Once all the appropriate deal-related information is
entered into the model, it should automatically
update two tabs, 1 concerning the “pro forma credit
statistics” and 1 concerning the “accretion or
dilution” after the deal.
I will talk about accretion/ dilution later on in this
blog, but first let’s take a look at some more basics of
this so-called M&A model.
Build in flexibility with
Microsoft excel
As with the LBO model, a M&A model is constructed with
the flexibility to analyze a given proposed transaction
under “multiple financing structures” and “operating
scenarios”.
On the “transaction summary tab” in excel; basically the
first tab, toggle cells allow the corporate finance
consultant to switch amongst others between multiple
financing structures and operating scenarios.
Here for the “choose function” in excel is used, like I
discussed in my blog on the LBO model.
This is just really handy, because it would be crazy to type
in different operating scenarios and financing structures
when your managing director or the client asks for this.
It can now be done simply with building in a “toggle”
with some choose functions. Excel is our best friend.
Financing structure and deal
structure
An acquirer of a target company needs to choose among the
available funds based on a variety of factors, think of cost of
capital, flexibility on your balance sheet, rating agency
considerations and speed and certainty to close the
transaction.
Debt financing refers to the issuance of new debt or to use
“revolver availability” to partially, or fully, fund a M&A
transaction.
Examples of debt instruments are: a revolving credit facility,
term loans and bonds/ notes.
Equity financing refers to a company’s use of its own stock as
an acquisition currency. An acquirer can either offer its own
stock directly to the shareholders of the target.
Or they can first issue shares and then use the cash proceeds
to pay the shareholders of the target.
Equity financing offers the issuers with greater flexibility as
there are no mandatory cash interest payments, repayments
of principal and no covenants (as all the case with debt).
Goodwill, purchase price
allocation (PPA) and deferred tax
liability
In modelling a stock sale transaction “Goodwill” needs to
be taken into account. When the purchase price exceeds
the “net identifiable assets” of the target, this excess is
first allocated to the target’s tangible and identifiable
intangible assets.
These are then written up to their “fair value” and we call
this purchase price allocation (PPA).
These tangible and intangible asset write ups are then
reflected in the acquirer’s pro forma balance sheet.
And they are then depreciated and amortized over their
useful lives which reduces after tax earnings.
Goodwill, purchase price
allocation (PPA) and deferred tax
liability
This transaction related depreciation and
amortization is not deductible for tax purposes. And
from an accounting perspective, this discrepancy
between book value and tax value is resolved
through the creation of a deferred tax liability (DTL)
on the balance sheet.
For example called: “deferred income taxes”.
Goodwill is calculated as purchase price minus
target’s net identifiable assets after allocations to the
target’s tangible and intangible assets (PPA).
Once calculated, goodwill is added to the asset side
of the acquirer’s balance sheet and tested yearly for
“impairment”.
A graphical
representation of the
calculation of
goodwill is given here.

The tabel comes from

the book:

Investment Banking:
Valuation, leveraged
buyouts and mergers
& acquisitions of
Joshua Rosenbaum &
Joshua Pearl (exibit
7.4 in the book).

This is the main book I

use in my training
sessions and my
participants receive a
hard-copy of this
book when they
register.
Merger consequences
analysis
Merger consequences analysis measures the impact on
“earning per share” (EPS) in the form of “accretion/ dilution
analysis”.
And it also measures the credit statistics after the deal
because of balance sheet effects.
This analysis enables strategic buyers to fine tune the deal for
ultimate purchase price, deal structure and financing mix.
Of course, for this key assumptions need to be made
regarding purchase price, target company’s financials
(operating scenarios), and deal structure and forms of
financing.
A corporate finance consultant does this by first constructing
standalone operating models (income statements, balance
sheets and cash flow statements) in excel for both the target
and the acquirer.
As mentioned, these models are then combined into one pro
forma financial model that incorporates all the transaction
related adjustments.
Merger consequences
analysis: Credit statistics
Acquirers of target companies are often guided by
the desire to maintain key target ratios for the credit
statistics in setting up their M&A financing structure.
Most widely used credit statistics are grouped into
leverage ratios (e.g. debt to EBITDA and debt to total
capitalization) and coverage ratios (e.g. EBITDA to
interest expense).
Merger consequences
analysis: Accretion/ Dilution
Accretion/ dilution analysis measures the effect of a
transaction on a potential acquirer’s earnings,
assuming a given financing structure.
It centers on comparing the acquirer’s EPS pro forma
(after the transaction) versus on a standalone basis
(before the transaction).
If the “pro forma combined EPS” is lower than the
acquirer’s standalone EPS, the transaction is said to
be “dilutive”.
Merger consequences
analysis: Accretion/ Dilution
Conversely:
If the pro forma EPS is higher, the transaction is said
to be accretive.
A rule of thumb for 100% stock transaction (100%
paid with equity) is that when an acquirer purchases
a target with a lower P/E ratio (Price/ Earnings), the
acquisition is accretive. In this case, transactions
where an acquirer purchases a higher P/E target are
de facto dilutive.
The latter could be reversed do by “sizable
synergies”.
Merger consequences
analysis: Accretion/ Dilution
Accretion/ dilution analysis is a key screening
mechanism for strategic buyers.
Acquirers do not pursue transactions that are dilutive
over the foreseeable earning projection period.
For modelling purposes, key drivers for accretion/
dilution are purchase price, projected earnings for
buyer and target (operating scenarios), expected
synergies, form of financing, debt/ equity mix and
the cost of debt.
The most accretive M&A deals have (relatively) low
purchase prices, cheap forms of financing (more
debt) and significant synergies.
A graphical
representation of
the calculation of
“accretion/ dilution”
is given here.

The tabel comes

from the book:
Investment Banking:
Valuation, leveraged
buyouts and
mergers &
acquisitions of
Joshua Rosenbaum
& Joshua Pearl
(exibit 7.23 in the
book).

This is the main

book I use in my
training sessions and
my participants
receive a hard-copy
of this book when
they register.
End …

Any questions …
 Source used

Handbook:
Investment Banking:
Valuation, leveraged buyouts and mergers &
acquisitions.
Second edition (2013). Joshua Rosenbaum &
Joshua Pearl.
Wiley Publishing company.
 Training programs face to
face @ The Netherlands
The open training programs of Joris Kersten in The Netherlands take
place at the dates below. And for registration just write an email
(joris@kerstencf.nl) or look at www.joriskersten.nl.
1. 28, 29, 30, 31 October 2020 + 2, 3 November 2020: 6 days -
Business Valuation & Deal Structuring. Location: Amsterdam
Zuidas/ The Netherlands;
2. 16, 17, 18, 19 November 2020: 4 days - Financial Modelling in
Excel. Location: Amsterdam Zuidas/ The Netherlands.
Locations for both training programs: Crown Plaza Hotel @
Amsterdam South (“Zuidas”).

NEW - 100% online training program:

• Certificate “Registered Consultant Investment Management”
(RCIM) given out by Kersten Corporate Finance.
In 20 online sessions (in 10 working days) you will learn all on
investment management up to “intermediate level”.
Starting date: January 1st 2021. Training manual available very soon.
 Activities: Kersten Corporate
Finance
Service 1 - Training:
• Providing training in Business Valuation & Financial Modelling all over the globe;
• This at Universities, Investment Banks, Corporates and Financial Institutions;
• Open training programs in Amsterdam/ The Netherlands;
• Inhouse tailor made training programs all over the globe on request.
Service 2 - Consulting:
• M&A deal making in The Netherlands: Preparing valuations, information decks, negotiating LOI,
negotiating share purchase agreement and coordinating due diligence;
• Providing business valuations (DCF, comps, LBOs and M&A models);
• Financial Modelling.

Visiting address:
Kersten Corporate Finance
Gording 67
5406 CN Uden
The Netherlands
www.joriskersten.nl
Phone: +31 (0)6 8364 0527
Email: joris@kerstencf.nl
100% online training program
Registered Consultant Investment Management (RCIM)
On January 1st 2021 you can start (100% online) with obtaining your Certificate “Registered
Consultant Investment Management” (RCIM) given out by “Kersten Corporate Finance” in
The Netherlands.
In 19 webinars (19 topics) of about 3 hours each, I will teach you the key elements of
“investment management”. And this in 6 main themes.
After the webinars you practice with cases and exercises yourself, including questions from
past CFA exams (level 1, 2 and 3). In the cases and exercises I will also teach you to actively
use “Microsoft Excel” since this is an important tool in Corporate Finance.
The correct answers of the cases and exercises are also presented to you by webinars,
worked out in detail. This in order to check your own work.
When you have finished the 19 webinars and have practised with the exercises and cases (all
online), then there is an online exam to take (whenever you feel ready).
And when you pass the exam then you will receive the “Certificate Investment Management”
of “Kersten Corporate Finance”. (pass = grade above 5.5 on a scale of 10)
Your name, and certificate number, will then be mentioned in the register on
www.joriskersten.nl.
So for example your employer can then verify that you obtained the “Certificate Investment
Management” of “Kersten Corporate Finance”.
100% online training program
Level training:
Participants get from a "foundation" level to "intermediate" level. This takes about 1 month
to 3 months, depending on your own speed.
Foreknowledge needed for the training: A basic understanding of the Profit & Loss statement,
cash flow statement and balance sheet. Moreover, a basic understanding of Microsoft excel.
The “course manual” with all info and conditions of the training will be available in the week
of June 8th 2020.
And registration & subscription will also start in the week of June 8th 2020.
The 19 topics of the webinars, divided over 6 main themes are:

Theme 1: Key elements of investments

1) Asset classes and financial instruments. 2) Securities markets. 3) Mutual funds and other
investment companies.

Theme 2: Portfolio theory

4) Risk, return and the historical record. 5) Efficient diversification. 6) Capital asset pricing
model and arbitrage pricing theory. 7) Efficient market hypothesis.
100% online training program
Theme 3: Debt securities
8) Bond prices and yields. 9) Managing bond portfolios.

Theme 4: Security analysis

10) Macroeconomic and industry analysis. 11) Equity valuation. 12) Financial Statement
Analysis.

Theme 5: Derivative markets

13) Option markets. 14) Option valuation. 15) Future markets and risk management.

Theme 6: Active investment management

16) Evaluating investment performance. 17) International diversification. 18) Hedge funds.
19) Taxes, inflation and investment strategy.

The “course manual” with all info and conditions of the training will be available in the week
of June 8th 2020.
(will become July 2020 due to very busy agenda “after” corona)
More info on valuation …
About 60 articles on “Business Valuation” can be found on my linkedin
page under “articles”: www.linkedin.com/in/joriskersten

(On the next slides I will also give you all the links to the (free) articles).

Or visit my website for training in valuation (worldwide) & investment

consulting (M&A + Valuation): www.joriskersten.nl

Joris Kersten, MSc RAB

Phone: +31 (0)6 8364 0527
Email: joris@kerstencf.nl
60 free articles on valuation
Earlier blogs on “net debt” (cash & debt free)

Article 1: Valuation: Introduction to "net debt" (cash & debt free)

https://www.linkedin.com/pulse/valuation-introduction-net-debt-cash-free-
joris-kersten-msc-bsc-rab/

Article 2: Valuation: Net debt (cash & debt free)

https://www.linkedin.com/pulse/valuation-net-debt-cash-free-joris-kersten-
msc-bsc-rab/

Article 3: Valuation: Adjusted net debt – Cash like items

https://www.linkedin.com/pulse/valuation-adjusted-net-debt-cash-like-items-
kersten-msc-bsc-rab/

Article 4: Valuation: Adjusted net debt – Debt like items

https://www.linkedin.com/pulse/valuation-adjusted-net-debt-like-items-joris-
kersten-msc-bsc-rab/
60 free articles on valuation
Earlier blogs on “valuation of banks”

Article 1: Valuation of Banks: Business models of Banks

https://www.linkedin.com/pulse/valuation-banks-business-models-joris-kersten-msc-
bsc-rab/

Article 2: Bank Valuation: Financial Statements of Banks (part 1)

https://www.linkedin.com/pulse/bank-valuation-financial-statements-banks-part-1-
joris/

Earlier blogs on “Valuation of Oil & Gas Companies”

Article 1: Valuating Oil & Gas Companies: The Oil Industry

https://www.linkedin.com/pulse/valuating-oil-gas-companies-industry-joris-kersten-
msc-bsc-rab/

Article 2: Valuating Oil & Gas Companies: The Oil Industry – Part 2
https://www.linkedin.com/pulse/valuating-oil-gas-companies-industry-part-2-kersten-
msc-bsc-rab/
60 free articles on valuation
Earlier blogs on “Leveraged Buy-Outs (LBOs)”

Article 1: Leveraged Buyouts (LBOs): Key mechanics of LBOs

https://www.linkedin.com/pulse/leveraged-buyouts-lbos-key-mechanics-
joris-kersten-msc-bsc-rab/

Article 2: Leveraged Buy-Outs (LBOs): Term Loans, High-Yield Bonds and

Financial Modelling
https://www.linkedin.com/pulse/leveraged-buy-outs-lbos-term-loans-
high-yield-bonds-joris/?trackingId=UKiJSEmmn6ANNwtec76sNw%3D%3D

Article 3: Leveraged Buy-Outs (LBOs): Components of an LBO model

https://www.linkedin.com/pulse/leveraged-buy-outs-lbos-components-
lbo-model-kersten-msc-bsc-rab/
60 free articles on valuation
Earlier blogs on “Debt & Leverage”

Article 1: Debt: Ratio “debt/ GDP” in the US, The Netherlands, Germany and Japan
https://www.linkedin.com/pulse/debt-ratio-gdp-us-netherlands-germany-japan-
kersten-msc-bsc-rab/

Article 2: Debt: Why global debt increased over the last 100 years
https://www.linkedin.com/pulse/debt-why-global-increased-over-last-100-years-
kersten-msc-bsc-rab/

Article 3: Debt of companies: Leverage, Private Equity, Solvency and Bankruptcy

https://www.linkedin.com/pulse/debt-companies-leverage-private-equity-solvency-
kersten-msc-bsc-rab/

Earlier blogs on “Weighted Average Cost of Capital (WACC) – step by step”

Article 1: Capital Market History Lessons – Corporate Finance (part 1)

https://www.linkedin.com/pulse/capital-market-history-lessons-corporate-finance-part-
joris/
60 free articles on valuation
Earlier blogs on Financial Modelling

Article 1: Financial Modelling in Excel: Circular references, interest calculations and iterations
https://www.linkedin.com/pulse/financial-modelling-excel-circular-references-kersten-msc-bsc-rab/

Article 2: Excel basics for Finance: SUM, MAX, MIN, AVERAGE, IF, cell referencing, named ranges
https://www.linkedin.com/pulse/excel-basics-finance-sum-max-min-average-cell-named-joris/

Article 3: Excel for Valuation: COUNTIF, VLOOKUP, INDEX and MATCH

https://www.linkedin.com/pulse/excel-valuation-countif-vlookup-index-match-kersten-msc-bsc-rab/

Article 4: Excel for Business Valuation: OFFSET, FORECAST and CHOOSE

https://www.linkedin.com/pulse/excel-business-valuation-offset-forecast-choose/

Article 5: Excel for Business Valuation: NPV, IRR, PMT and EOMONTH
https://www.linkedin.com/pulse/excel-business-valuation-npv-irr-pmt-eomonth-kersten-msc-bsc-rab/

Article 6: Excel for Business Valuation: Custom Formatting, Conditional Formatting and Sparklines
https://www.linkedin.com/pulse/excel-business-valuation-custom-formatting-sparklines-joris/
60 free articles on valuation
Earlier blogs on “various topics”

Article 1: Financing a M&A transaction: An introduction

https://www.linkedin.com/pulse/financing-ma-transaction-introduction-joris-kersten-msc-bsc-rab/

Article 2: Valuation: How to adjust for “Operating Lease” (under Dutch GAAP)
https://www.linkedin.com/pulse/valuation-how-adjust-operating-lease-under-dutch-gaap-joris/

Article 3: M&A closing mechanisms: Locked Box & Completion Accounts

https://www.linkedin.com/pulse/ma-closing-mechanisms-locked-box-completion-accounts-joris/

Article 4: Scoping a financial model built primarily for business valuation:

https://www.linkedin.com/pulse/scoping-financial-model-built-primarily-business-joris/

Article 5: Consolidation of M&A targets and Purchase Price Allocation (PPA)

https://www.linkedin.com/pulse/consolidation-ma-targets-purchase-price-allocation-joris/

Article 6: Economics: Do economies have to grow to maintain the same level of prosperity ???
https://www.linkedin.com/pulse/economics-do-economies-have-grow-maintain-same-level-joris/
60 free articles on valuation
Earlier blogs on “bonds”

Article 1: Bonds - An introduction

https://www.linkedin.com/pulse/corporate-finance-bonds-introduction-
joris-kersten-msc-bsc-rab/

Article 2: Bonds & Bond Markets

https://www.linkedin.com/pulse/bonds-bond-markets-corporate-finance-
joris-kersten-msc-bsc-rab/

Article 3: Bonds, Rating Agencies and Credit Ratings

https://www.linkedin.com/pulse/bonds-rating-agencies-credit-ratings-
joris-kersten-msc-bsc-rab/
60 free articles on valuation
Earlier blogs on “Valuation & funding of start-ups”

Article 1: Valuation & funding of start-ups - Funding rounds

https://www.linkedin.com/pulse/valuation-funding-startups-rounds-joris-kersten-msc-bsc-rab/

Article 2: Startup valuation: Pre-money and post-money valuation

https://www.linkedin.com/pulse/startup-valuation-pre-money-post-money-joris-kersten-msc-bsc-rab/

Article 3: Valuation methods for Startups (early stage) – Part 1

https://www.linkedin.com/pulse/valuation-methods-startups-early-stage-part-1-kersten-msc-bsc-rab/

Article 4: Valuation methods for Startups (early stage) – Part 2

https://www.linkedin.com/pulse/valuation-methods-startups-early-stage-part-2-kersten-msc-bsc-rab/

Article 5: Startups in Silicon Valley: The beginning – Part 1

https://www.linkedin.com/pulse/startups-silicon-valley-beginning-part-1-joris-kersten-msc-bsc-rab/

Article 6: Startup Funding & Convertible Debt (part 1)

https://www.linkedin.com/pulse/startup-funding-convertible-debt-part-1-joris-kersten-msc-bsc-rab/
60 free articles on valuation
Earlier blogs on “Mergers & Acquisitions (M&As)” and “M&A
transactions”

Article 1: M&A Transactions: Share Deals, Asset Deals and Legal Mergers
and Divisions
https://www.linkedin.com/pulse/ma-transactions-share-deals-asset-legal-
mergers-kersten-msc-bsc-rab/

Earlier blogs on “Investment Management”

Article 1: Investment Management: Securitization, Subprime Loans and

Collateralised Debt Obligations
https://www.linkedin.com/pulse/investment-management-securitization-
subprime-loans-joris/
60 free articles on valuation
Earlier blogs on “Business valuation to Enterprise Value”

1) Leveraged Buyout (LBO) Analysis:

https://www.linkedin.com/pulse/leveraged-buyouts-lbos-joris-kersten-msc-bsc-rab/

2) M&A Analysis – Accretion/ Dilution:

https://www.linkedin.com/pulse/ma-model-accretion-dilution-joris-kersten-msc-bsc-rab/

3) Discounted Cash Flow Valuation:

https://www.linkedin.com/pulse/discounted-cash-flow-valuation-dcf-joris-kersten-msc-bsc-rab/

4) Valuation Multiples 1 – Comparable Companies Analysis:

https://www.linkedin.com/pulse/valuation-multiples-1-comparable-companies-analysis-joris

5) Excel Shortcuts & Business Valuation:

https://www.linkedin.com/pulse/excel-shortcuts-business-valuation-joris-kersten-msc-bsc-rab

6) Valuation Multiples 2 – Precedent Transaction Analysis:

https://www.linkedin.com/pulse/valuation-multiples-2-precedent-transaction-kersten-msc-bsc-rab
60 free articles on valuation
Earlier blogs on “Energy Transition”

Article 1: Energy transition: Introduction to Sustainable/ Renewable Energy

https://www.linkedin.com/pulse/energy-transition-introduction-sustainable-joris-
kersten-msc-bsc-rab/

Article 2: Energy transition: Energy mix of The Netherlands & Goals for co2 reduction
https://www.linkedin.com/pulse/energy-transition-mix-netherlands-goals-co2-
reduction-joris/

Earlier blogs on Wall Street

Article 1: Wall Street – A general introduction

https://www.linkedin.com/pulse/wall-street-general-introduction-joris-kersten-msc-
bsc-rab/

Article 2: Wall Street – The Federal Reserve banking system

https://www.linkedin.com/pulse/wall-street-federal-reserve-banking-system-kersten-
msc-bsc-rab/
60 free articles on valuation
Earlier blogs on the “cost of capital”

Article 1: Valuation & Betas (CAPM)

https://www.linkedin.com/pulse/valuation-betas-capm-joris-kersten-msc-bsc-rab/

Article 2: Valuation & Equity Market Risk Premium (CAPM)

https://www.linkedin.com/pulse/valuation-equity-market-risk-premium-capm-joris-kersten-msc-bsc-rab/

Article 3: Is the Capital Asset Pricing Model dead ? (CAPM)

https://www.linkedin.com/pulse/capital-asset-pricing-model-dead-capm-joris-kersten-msc-bsc-rab/

Article 4: Valuation & the cost of debt (WACC)

https://www.linkedin.com/pulse/valuation-cost-debt-wacc-joris-kersten-msc-bsc-rab/

Article 5: Valuation & Capital Structure (WACC)

https://www.linkedin.com/pulse/valuation-capital-structure-wacc-joris-kersten-msc-bsc-rab/

Article 6: International WACC & Country Risk – Part 1

https://www.linkedin.com/pulse/valuation-international-wacc-country-risk-part-1-joris/
60 free articles on valuation
Article 7: International WACC – Part 2
https://www.linkedin.com/pulse/valuation-international-wacc-part-2-joris-kersten-msc-bsc-
rab/

Article 8: Present Values, Real Options, the Dot.com Bubble

https://www.linkedin.com/pulse/valuation-present-values-real-options-dotcom-bubble-joris/

Article 9: Valuation: Different DCF & WACC techniques

https://www.linkedin.com/pulse/valuation-different-dcf-wacc-techniques-joris-kersten-msc-
bsc-rab/

Article 10: Valuation of a company abroad

https://www.linkedin.com/pulse/valuation-company-abroad-joris-kersten-msc-bsc-rab/

Article 11: Valuation: Illiquidity discounts, control premiums and minority discounts
https://www.linkedin.com/pulse/valuation-illiquidity-discounts-control-premiums-joris/

Article 12: Valuation: Small firm premiums

https://www.linkedin.com/pulse/valuation-small-firm-premiums-joris-kersten-msc-bsc-rab/