M&A Project - Merger Modeling of DRL & CIPLA

In this course you will learn about Credit Merger Model for Pharma Sector Company. The company that we will be analyzing will be Cipla & Dr Reddy's. We will use the merger modeling in excel technique to prepare a Merger Model for these two companies.

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 17h 22m | 166 Videos | 86654 Views |   Expert| English[Auto-generated]

The business world is a very dynamic stage where change is the only constant. In order to adapt the changes are very crucial for growth and development. Here change does not mean alteration in the genre of the business but morphing the volume of the business staying in the track. It can either expand or shrink as per the economical condition of the business by adding an extra operating unit in the infirmary or shedding the liabilities that are holding the business back.

What is Merger and Acquisition?

The cutthroat competition demands absolute adaptation of a business to survive and thrive. One of the ways to expand business is Merger and Acquisition. This is a unique procedure to enhance the business scenario of a company either by merging or acquiring other businesses belonging from same or different fields.

Merger

The word is self explanatory. In this case of business expansion, two different entities of the similar background fuse together via legal consolidation methods to form a single entity. Both the bodies will share their assets and liabilities under a single roof. In this case one party’s business comes under the indirect ownership of other party via legal transactions.

Benefits of merging business

1. Economies of scale

The merging technique increases the volume of the company. The single entity has a greater size and demand in comparison with the two different entities. This is where the single entity can make more profit by increasing the manufacturing rate. The more the rate the greater is the output the lesser is the average cost of the products. This can have a big impact on the cost price of the product and the consumers will be delighted.

Different aspects of economies of scale

• Lower average costs due to merging of two units into one
• Bulk raw material purchase deceases the average production cost to a considerable level
• A large company enjoys better rate of interests too
• Organizational infrastructure decreases from two to one reducing expenditures to a large extent

These factors vary due to industrial genre and other contemporary factors of the two entities.

2. Competition

When there is an invasion of multinational or growth of a lot of similar firms in the market, merger can prove to be the best bet to deal with the competition. A large volume with the acquired market for both the entities can be a promising factor in growth and profitability.

In fact in the international scale merger can gift a company the multinational status, increasing the face value and brand image.

3. Increased fund allocation in research and development

Diverting funds in research and development is considered as a risky financial investment. In case of mergers, as the profit is increased, the risks get halved. In fact the increased profit margin encourages fund allocations like this which in turn gives birth to better and finer quality of products. This is very important for the pharmaceutical industries.

4. Crisis management

When the economical condition of a company is in crisis the technique can save it from dying. This gives the company a chance to stay float and struggle.

5. Diversification

When two entities from different background merge they can produce diversified business and the probability of profitability increases too.

Acquisition

This process of acquiring a business is the takeover the entire or more than half of the company and consolidating it with the owner’s firm. The entire assets or ownership is purchased.

Benefits of Acquisitions

1. Absorption and ownership

The company which is buying the other one from the same genre will absorb the entire assets in to its own. Either a part is acquired or whole which will be assimilated in the buyer’s firm. There will be absolute ownership and the operation will be done without following any cooperative basis.

2. Economies of scale

The company after acquiring a firm will increase in volume. The absolute ownership will make it enjoy the large volume of raw material purchase and decrease in the cost of the production of the finished goods. The economy is enhanced when the industry for same background is acquired and the benefits are enjoyed by the owner. It is a very crucial point in the terms of competition.

3. Increased market reach

Acquiring a firm means acquiring all its assets. Network and market are also the assets that the company gets to enjoy. In case of pharmaceutical industries the market acquired by the company from the bought firm is an added advantage that comes in the package. The customers will be added in the list and eventually the sales will also increase. This extension of the product reach and expanded market prove well in the future.

4. Tax implications

Sometimes there is an exemption in the tax part when a company acquires another one with lower profit range. This action lowers the tax liabilities but there are limits set by the authorities.

About the course

The course is appropriately designed by industry professional and experienced experts to impart an absolute knowledge about how the merger and acquisitions take place in the market. The entire training is done based on the example of the merger model of Dr. Reddy’s Lab and Cipla. The training will impart knowledge based on certain sections. Each section involves schematic enlightenment of fields needed for the completion and understanding of the project.

• Section 1: Basic Excel

The first section deals with the basic knowledge needed in the fields of MS Excel in order to understand the study process as the merger model is prepared and understood with excel operations. In this section, a candidate will be taught:

1. How to surf Excel functions and help option
2. Case studies based on Excel
3. How to enter data and manage in Excel
4. How to populate the case study in Excel
5. Simple mathematical calculations
6. Advanced calculation in Excel using formulas
7. Formatting tables and number formats
8. Calculation updating
9. Conditional formatting
10. How to crate charts and graphs
11. How to represent data in table formats
12. How to filter data as per need
13. Various shortcuts needed for the selection, calculation and navigations

• Section 2: Advanced Excel

This section of the curriculum will teach the aspirant how to take the use of the Excel into a new level. The advanced use of Excel is quite necessary in this case study and simulation of the merger model. The whole section has the tutorial for the advanced formulas used in the Excel for finding and simulating information from the acquired data.

1. Various functions needed in advanced operation in Excel
2. Office buttons and paste functions
3. Conditional formatting
4. Equation editor
5. Cell information
6. Forecast
7. Array functions

There are innumerable functions and formulas that will be taught in this section to build a good grip of Excel in the aspirant.

• Section 3: Merger and Acquisition (M&A)

As mentioned earlier the third section will have the basic and intrinsic aspects of merger and acquisitions. Starting from introduction and overview of the section, the curriculum will go deep and enlighten the segments which must have to be taken under consideration while studying the merger model of Dr. Reddy’s lab and Cipla.

The section will impart knowledge in the global scenario of the M&A as ell the present rules and regulations in India. Then eventually the model will propagate to the segment where model building will be focused with accounting needed in M&A.

The simulation will be done with Parkway acquisition of Apollo Hospital via a mini merger model in details and then the advanced stage of the models will be approached systematically.

• Section 4: Report Writing

This section will teach what equity research is and what are the reports based on. The report writing is a delicate part where the aspirant must know what to write and what to escape from. The case studies are converted I reports that have to be submitted for approval.

This section will also teach about peer analysis in details. Certain cases will be there for simulation of the entire process.

What the aspirants will learn?

Besides learning about MS Excel deeply the aspirants will get to know how the model in merger and acquisition actually is constructed apart from the books. The hands on experience will make them familiar with the processes and enhance their skills. Merger modeling is not an easy process. It needs practical exposure and real time examples to understand how to act in specific cases. The process will be taught based on the Excel implementations.

The aspirants will learn:

1. Excellent Excel skills
2. Merger and Acquisition concept in the business segment
3. Report writing
4. Construction of models with real case studies and examples.

Target audience

This training can prove to be a very good skill for an aspirant to enhance their resume. The aspirant can be of the following backgrounds to enjoy the benefits.

• Students seeking a great career in investment banking sector or financial industry.
• Aspirants who want to progress in the particular segments by learning merger modeling techniques
• Business administration professionals can learn this technique for better understanding of the concept.
• Students who are seeking a good internship that will add great value in their academic scenario.

Frequently asked questions

1. What are the benefits of this training?

Apart from learning advanced MS Excel, the aspirant can learn the techniques to prepare a merger model in Excel and that is definitely feather added in their cap. This advanced knowledge will take them few steps ahead of the curve and will definitely be benefitted in the future.

2. Will the training help me to get a good job?

Staying ahead o the competition is what we all look for these days. This training will not only enhance the skill set but also make the candidate a favorable one to the big corporation. Understanding the complex model is not an easy job. So it is an added strength for the job aspirants.

3. Is it tough to understand the model when someone does not have basic knowledge of Excel?

The first two sections of the curriculum are based on the basic and advanced knowledge of Excel. The learner will easily imbibe the Excel tricks and can get through the course at ease.

Testimonials

Ram Charan

I had a primary knowledge about how Excel works but after completing the course that knowledge boosted my understanding to a different level. In fact I was stunned to see how Excel can make a merger model so easy. Thanks to the online training.

Joseph Blatter

I am a Business Administration enthusiast myself and pursuing the curriculum recently. When I came across about the information of the internship in M&A, I found the right choice. I took the training and prepared a good presentation that brought me accolades from my mentors and professors. The model was not an easy job to understand but the apt presentation in the online training course made it clear. I absorbed what I could and learned a lot of new things. I hope this will be a turning point in my career.

Harshad Gupta

Those who think that online training courses are not meant to impart knowledge, they cannot be more wrong. The efficient online training leads to proper enlightenment of the individual only if the material is strong and the individual is determined. There is no doubt that the training material is versatile. If you want to learn you will learn anyhow. Pursue this training and enhance your analytical skills too.

Rupa Roy

Being a business administration professional myself, I recommend this course to the admirers. I did not go through the course by myself but few of mu subordinates praised the online format. I went through it to understand what the course is offering and after getting interested I thought of investing my time in it. Indeed the course is a good one. I am recommending to those who want to be a expert professional in the future.

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