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Merger & Acquisition or M&A Model is used to determine the impact of
E a merger or acquisition on the pro forma accretion/dilution. The most
known model that is used by companies is the single tab model, where
D Company A + Company B = Merged Company. This model is most
frequently utilized in the fields of investment banking and/or company
E development.
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U The user of Initial Offering or IPO model are Investment bankers and
Z people who work in corporate development. They use this model to
figure out how much their business is worth before they take it public.
This method integrates an analysis of comparable companies with an
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assumption regarding the amount at which investors would be willing to
S invest in the company being studied. To guarantee the stock trades well
A on the secondary market, the valuation in an IPO model incorporates a
"IPO discount."
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It is used in financial planning and analysis (FP&A) to compare the
budget model to a forecast. Budget and forecast models are
sometimes in the same workbook, and sometimes they are in
different ones. Forecasting model is used to forecast sales, supply
and demand, customer behavior, and other events. These models are
particularly useful in the fields of sales and marketing.

Based on the handout, the Budget model is used by

professionals in financial planning and analysis (FP&A) to
model finances and put together the budget for the next
year (s). Most budget models are based on monthly or
quarterly numbers and pay a lot of attention to the income
statement.

The Discounted Cash Flow (DCF) Model is a sort of financial model used
to determine the worth of a business. However, the values of the
statements shall be based on the Net Present Value (NPV) of the future
cash flow. Consequently, the DCF model takes the cash flows from the
three-statement model and makes the appropriate modifications. Then,
the XNPV function in Excel is used to discount them back to the present
using the firm's Weighted Average Cost of Capital (WACC).