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Overview

Prerequisite: Modeling Financial Statements aka Financial Statement Modeling

MBA ACCT-GB-3344 specializations:

Undergrad ACCT-UB-0044 concentration: Accounting

You will learn to model salient corporate events such as acquisitions, leveraged buyouts, public offerings, projects, and securitizations. The course also covers the necessary accounting details.

This course is highly relevant for bankers, private and public equity investors, lenders, corporate finance professionals, project financiers, and consultants. The conceptual, practical, and technical knowledge gained in this course can give you a significant competitive edge during your interviews, internships, and jobs.

The salient topics covered are as follows:

Prerequisites and system requirements

Help and Office

Materials and Course Design

Assignments

Attendance and penalty for missing classes

Requiring attendance is necessary for several reasons. First, you incorrectly assume that you can catch up on a missed class by watching a recording (if available). Videos do not engage your brain as much as a live class. Second, less than 20% of you watch the recording (if available). You are then lost in class, which provides wrong signals to me as an instructor. Third, your absence hurts class discussions. Fourth, you miss out on feedback if you do not work through the questions I pose in class. Fifth, I lose the feedback since there are fewer questions.

The policy below will be in effect only after the add/drop period.

Without mandatory attendance, attendance is often below 50%. Therefore, though I dislike doing this, I penalize absences. If you anticipate being absent for good reasons, please email me well in advance. Please enter "Excused" on the attendance sheet described below to avoid the penalty if I approve. If you miss a class due to emergencies and cannot tell me in advance, do not panic. Take care of the emergency first, and then email me. I will permit you to change the "Absent" to "Excused." But, if you miss a class without a valid reason, there is a penalty, as stated below.

For sections meeting in 150-190 minute sessions, you would lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY missed session unless you were explicitly excused via email. Thus, if you miss two class sessions, you would lose two grades, and so on.

For sections meeting in 75-80 minute sessions, you would lose one grade (A to A-, A- to B+, B+ to B, B to B-, and so on) for EVERY TWO missed sessions unless you were explicitly excused via email. Thus, if you miss four class sessions, you would lose two grades, and so on.

Please sit in the same seat in every class and display your name tags. For zoom classes, you must keep your video on AT ALL TIMES. You must also have a good working headset or mic as it is extremely rude to be inaudible and force me to ask you to repeat yourself. After entering the class, please mark yourself present in the first 20 minutes on the OneDrive sheet (link posted on Brightspace). You will be marked absent if you are more than 20 minutes late unless it is because of factors beyond your control (traffic, subway, interviews running late). You will also be marked absent if you leave the class early unless you have my permission or get it afterward. You will get an F in the course if you are caught cheating on the attendance sheet.

Exams and Grading

Important computer tips for the final

Schedule

1. Acquisitions: Identifying and modeling synergies

Revenue-related synergies

Expense-related synergies

2. Acquisitions: Modeling consideration paid and acquired assets

Consideration paid

Modeling acquired assets

Modeling acquired pre-tax liabilities

Modeling deferred tax liabilities and assets

Goodwill

3. Acquisitions: Drivers of accretion and dilution

4. Leveraged buyouts: Modeling changes in capital structure

Identifying LBO targets

Modeling sources of financing and their waterfall

Modeling exit strategies and multiples

5. LBO: Modeling advanced debt and equity structures

6. Bankruptcies

7. Step acquisitions and non-controlling interest

8. Modeling corporate breakups

9. Modeling project finance

10. Modeling tax-efficient structures

11. Modeling securitizations

12. Final exam

For Langone classes (evening), the final exam is in the last class. For day classes, the final exam is as per the time set by the registrar. Please check the registrar's website.