Agenda

09:00

Course Overview & Objectives and Introductory Concepts

  • Corporate finance and valuation concepts 
  • Financial modelling concepts: Aims, design, structure and development 
  • Introductory Concepts 
    • Cash vs Profit 
    • Time Value of Money 
    • Cost of Capital 
    • Risk, return & value 
    • Scenario Analysis 

09:45

Financial Forecasting & Analysis 

  • Common difficulties, problems and limitations with financial analysis 
    • Defining the decision 
    • Availability of information 
    • Defining model scope
    • Knowing the limitations of financial analysis 
    • Information overload 
  • Financial Forecasting 
    • What is it? 
    • Steps involved 
    • Best practices & financial modelling standards

10:30

Morning Tea 

10:45

Financial Decision Making & Evaluation 

  • Common financial / investment decisions 
  • Understanding the Time Value of Money concept 
  • Understanding Discounted Cash Flows 
  • Evaluation of different methodologies (including NPV, IRR, Payback Period) 
  • Introduction to valuation concepts including NPV 
  • Identifying & dealing with IRR difficulties

11:30

Valuation tools and methodologies 

  • Reviewing valuation concepts
  • Valuation methodologies (including evaluation of different methodologies) 
  • Dealing with common valuation issues 

12:30

Lunch 

13:30

Discounted Cash flow 

  • Overview of DCF methodology
  • The role of Cash Flow Forecasts 
  • Cost of Capital 

14:15

Ratios and Key Performance Metrics 

  • Performing a Ratio Analysis 
  • Understanding Profitability Ratios 
  • Interpreting Liquidity and Solvency Ratios 

15:00

Afternoon Tea 

15:15

Financial Modelling & Forecasting in Excel 

  • Overview & Objectives 
    • Defining the scope of your model 
    • Objectives: What are the aims of the model? 
    • Understanding model limitations
  • Development and structuring 
    • Planning the financial model  
    • Ensuring the model structure matches the objectives 
    • Incorporating best practice techniques into your models
    • Introduction to key Excel functions and functionality for financial modelling 

17:00

End of Day One 

09:00

Structuring the Cash Flow Model 

  • Setting Up the Work Book & structure
    • Time scale 
    • Separate business areas 
    • Timing and frequency formats 
    • Data Sources 
  • Managing the Input Section 
  • Building the Calculation Section 
    • Building the C/Flow Forecast 
    • Line by line build-up of cash flows 
    • Cap Ex and Op Ex 
  • Presenting Model Outputs 
    • Key Financials 
    • Summary of model data 
    • Dashboards & Graphs 
    • Valuations & terminal values

10:30

Morning Tea 

10:45

Integrated 3-way Financial Models

  • Balance sheet, Income statement, cash flow
  • Dealing with interest circularity
  • Using ratios to produce financial forecasts
  • Debugging a 3-way model

12:30

Lunch 

13:30

Debt and Capital Structuring 

  • Typical Bank Covenants & Ratios
  • The Importance of Capital Management 
    • Why it is important (cost of debt vs equity) 
    • Defining your optimal capital structure 
  • The Effect of Capital Structure 
    • Understanding its effects on risk 

14:30

Sensitivities & Scenario Management

  • Sensitivity 
    • Identifying key variables for sensitivity
    • Building in sensitivities
    • Displaying the results of sensitivity analysis
  • Scenarios
    • How to run multiple sets of inputs through a single calculation engine 
    • Building, managing and extending a scenario manager that is far better than Excel’s

15:00

Afternoon Tea 

15:15

Best Practice Reporting, Review and Presentation

  • Checking outputs for consistency 
  • Techniques for building checks & balances
  • Model audit & review
  • Documentation
  • Use of financial modelling software

17:00

End of Day Two

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