Public Courses

Day 1 - Modeling Standards and Building an Integrated Financial Model

Participants begin with basic keyboard drills and shortcuts, and then rapidly progress to efficient formula construction and basic modeling and checking techniques. Using simple practice models, participants complete basic projections and start learning how to integrate the financial statements in a spreadsheet. The problem of circularities is addressed in detail, and participants learn how to use the iteration tool to solve circularities. Participants also learn how to stress-test the assumptions used, to efficiently check their work and to document it. Although simple, the sample companies contain the basic parts common to all projection models.

Day 2 - Projecting a Real Company

Working with a real company's financials exposes the participants to some of the complexities that they will encounter, while reinforcing the basic methodologies common to the construction of all models. This session covers a more complex cash flow statement and a detailed debt schedule. The session includes plenty of practice time, to allow participants to familiarize themselves with the modeling techniques, increasing their speed and accuracy.

Day 1 - Valuation Roadmap

The session lays the foundations to build a solid understanding of corporate valuation in the context of investment banking. The most common valuation methodologies are introduced, explaining the difference between a company's fundamental value, and how much an acquirer  would pay for the business. The concepts of enterprise value and equity value are explained, using simple but rigorous exercises. Finally, the basics of multiples valuation and discounted cash flow valuation are introduced. Exercises are used throughout the session.

Day 1 - Trading Comparables

Participants are introduced to preparing multiples using real company data and a case study including a range of international companies.  We focus on how to select comparables, where to find data in published financial data and equity research reports, how to clean the raw data, and on documenting and checking the output. The most commonly-used multiples are explained and complexities such as normalizing for non-recurring expenses/income are also covered. The session ends with practical exercises on the application of multiple analysis to value a company.

Day 2 - Discounted Cash Flow (DCF) Valuation

During this session, participants learn how to build a discounted cash flow valuation model. The session starts with an overview of the valuation methodology, and the steps required in setting up a valuation model. We then focus on the calculation of free cash flow and a detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state. We analyze the weighted average cost of capital, breaking it down into its components. We complete the valuation model by calculating terminal values, using both the exit multiple method and the perpetuity growth method, and discounting values to the present to calculate enterprise values and share prices. Once the valuation is complete participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.

Day 3 - Valuation Complexities (7 hours)

During this session, participants learn how to handle certain items that can generate complexities when valuing a firm. Leases, pensions, taxes (including tax losses), share option expenses, and provisions are covered; the related financial statements analysis issues are reviewed and the impact on the different valuation methodologies are analyzed. Both enterprise value and income statement adjustments are covered for these topics. At the end of the day participants apply the results to the target company.

This module deals with the financial implications of the main divestiture and restructuring options available to a firm as an ongoing concern: divestiture (public or private, total or partial), spin-off / split-up, split-off and equity carve-outs. We focus on the financial modeling aspect of the analysis, building a simple and clear model for every individual option, and illustrating the related accounting implications. The financial modeling also incorporates possible adjustments to the capital structure of the business being sold/restructured.

In this session participants will cover the income statement, balance sheet and cash flow statement given a series of transactions. The key interactions between the income statement and balance sheet are covered in detail. Participants will then build several basic cash flow statements. The day is structured around a case company using published financial statements.