M&A: Free Cash Flow (FCF) Modeling

One of the primary functions of a broker-dealer’s M&A desk is advisory services – consulting clients as they seek to grow through M&A.; In this course, you will learn to use the Free Cash Flow metric to evaluate acquisition opportunities. You will learn about the components of Free Cash Flow and its relationship with market value. You will also learn about the process of capital budgeting and guidelines to follow. This course is part of the New York Institute of Finance’s popular Mergers & Acquisitions Professional Certificate program.

• Identify Free Cash Flow from Accounting Data
• Recognize how to compare Free Cash Flow to Net Income
• Recognize the Drivers of Free Cash Flow
• Identify the steps to calculate Cost of Capital
• Identify the steps to use Free Cash Flow for Capital Budgeting Decisions
• Recognize the relationship between Free Cash Flow and Economic Value Added Value Acquisitions using Free Cash Flow
• Recognize how to develop a Free Cash Flow approach to Incentive Compensation