Breaking into M&A – Accounting [EN]

Understand the 3 financial statements, the links between each statement and the accounting impact of company operation

This course is intended for candidates preparing for interviews in the following domains:

M&A – Private Equity – ECM – DCM – Leveraged Finance – Coverage – Transaction Services – Audit – Financial controlling

Course objectives

  • Understand the 3 financial statements
  • Master the links between the 3 financial statements
  • Construct the principal line items of the P&L statement, balance sheet and cashflow statement
  • Understand the purpose of the 3 financial statements and how they differ from each other
  • Comprehend the impact of company operations on each financial statement
  • Master the 3 accounting methods of consolidation (full consolidation, equity method, proportional consolidation)

Plan du cours

Contenu du cours

  • 5 sections
  • 23 vidéos
  • Durée totale : 47min
1. P&L statement
Video 1: What is an income statement?
Video 2: What are the components of an income statement?
Video 3: Describe the operating cycle section of the income statement
Video 4: Describe the investing cycle section of the income statement
Video 5: Describe the financing cycle section of the income statement
2. Balance sheet
Video 6: What is a balance sheet?
Video 7: What are the components of a balance sheet?
Video 8: What are the 2 different ways of presenting a balance sheet?
3. Cashflow statement
Video 9: What is a cashflow statement?
Video 10: What are the components of a cashflow statement?
Video 11: Describe the operating cycle section of the cashflow statement
Video 12: Describe the investment cycle section of the cashflow statement
Video 13: Describe the financing cycle section of the cashflow statement
4. Liens entre les états financiers
Video 14: What are the links between the income statement and the other financial statements?
Video 15: What are the links between the cashflow statement and the other financial statements?
Video 16: What are the links between the balance sheet and the other financial statements?
Video 17: What is the impact of an increase in D&A on the 3 financial statements?
Video 18: What is the impact of an increase in inventory on the 3 financial statements?
Video 19: What is the impact of a dividend payment on the 3 financial statements?
5. Account methods of consolidation
Video 20 : What are the 3 accounting methods of consolidation?
Video 21: What is full consolidation
Video 22 : What is the equity method of consolidation?
Video 23 : What is proportional consolidation?

Description du cours

If you are looking to review the fundamentals of accounting ahead of your interview preparations in Corporate Finance, this is a course tailor-made for you.

Accounting comprises the very basis of Corporate Finance – an understanding of it is necessary to be able to undertake the valuation of a company, build a LBO model, and to evaluate the synergies of a prospective company acquisition.

More immediately, a mastery of accounting fundamentals is necessary in order to succeed in your interviews in Corporate Finance. Interviewers often begin technical questions with accounting, and an inability to respond correctly and precisely to them is almost always a veto factor in an interview.

Understanding the basics of accounting is necessary but not sufficient for your interview success. Interviews look out for an ability to apply accounting concepts to actual case studies – a point at which candidates often fall short. A large number of students are often ill at ease with accounting questions – unable to specify and explain the principal line items of a P&L statement, to evaluate the impact of an investment or an increase in D&A on the 3 financial statements, or to articulate clearly the links between the 3 statements. The answers to these questions and more are the focus of this course. Through it, you will learn not just what to say, but also how to say it. The aim is to enable you to achieve performance excellence in your interviews.

Preview

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CORPORATE FINANCE CONSEIL EN STRATÉGIE