Mergers and acquisitions (M&A) have become a significant part of the corporate landscape in India, driven by the need for companies to grow, diversify, and achieve synergies. Financial modeling is a critical component of the M&A process, providing the quantitative foundation for decision-making. This guide explores the essentials of financial modeling for M&A in the Indian context, outlining key steps, considerations, and best practices.

Understanding Financial Modeling for M&A
Financial modeling in the context of M&A involves creating a detailed representation of the financial performance of the target and acquiring companies. The model helps in evaluating the potential financial outcomes of the merger or acquisition, including synergies, cost savings, revenue enhancements, and overall impact on shareholder value.