3Day MBA in FINANCIAL MODELING

Transcription

1 3Day MBA in FINANCIAL MODELING COURSE SUMMARY The three day financial modeling course is an intensive hands-on course that offers attendees a comprehensive set of technical and financial skills to master financial modeling. The course begins with excel techniques that are applicable in developing corporate models. The second part survey a variety of financial models including corporate models for valuation and credit, M&A models and project finance models. In the latter part of the course case studies are used to illustrate the practical issues associated with modeling value drivers, developing assumptions and using models for risk management. Financial modeling concepts are taught using a combination of focused computer exercises, integrated financials model and template spreadsheets. Participants in the seminar build a complete financial model from A to Z and use the model in valuation and credit analysis. In addition to building models, the course will cover how to use templates that incorporate a host of financial concepts. By the end of the course, participants will be able to understand and construct a variety of models using similar principles. RESOURCES RECEIVED BY PARTICIPANTS Other than the instruction in how to build, use and analyze financial models, participants in the course will receive a comprehensive suite of financial modeling software on a compact disk that includes a number of template models and excel add-ins. The software consists of corporate models that accept historic financial data and generate alternative valuation measures; M&A models that consolidate two companies using alternative financing assumptions and produce accretion and dilution estimates; project finance models that measure the effect of alternative elements in a cash flow waterfall including debt service reserves, junior debt, covenants, defaults and pre-payments; LBO models that measure the debt capacity of a transaction; option pricing models that account for alternative structures; and debt valuation spreadsheets, Monte Carlo simulation models, tornado diagram and sensitivity analysis.

2 COURSE OUTLINE DAY ONE Excel functions and techniques for financial modeling Introduction - Overview of Course - Review of Actual Models Financial Functions in Excel - Use of date functions to convert monthly and semi-annual flows to annual data - Use of excel functions to transpose data, present frequency distributions and perform statistical analysis - Text and error checking functions - Use of excel functions for debt and present value analysis Tools for Analysis and Presentation - Effective use of range names - Development of scenarios using look-up tables - Development of scenario analysis using offset functions, combo boxes and spinners - Use of offset function for interactive graphics - Use of solver and goal seek to resolve circularity Case Study: Create scenarios and make graphics for presentation using advanced excel functions with monthly, quarterly and annual cash flows

3 DAY TWO Corporate Models Financial Modeling Lecture - Model Objectives - Review of Actual Models - Mistakes in Modelling (base case definition, ignoring financial ratios, capital expenditure consistency, growth rates, business cycles) - Model Structure for Alternative Transactions (corporate models, project finance models, leveraged buyout models and merger and acquisition models) - Model Layout (inputs, working analysis, debt structure, financial statements) - Model Complexities (depreciation, taxes, circularity, minority interest, deferred taxes) Model design and Structure - Objectives of Well Designed Models - Model Organisation (sheet order, repeating inputs, sheet colours, sheet columns) - Spreadsheet Conventions (positive number, switches, cork-screws, switches) - Simple formulas (formula length, max and min statements, range names) - Model Documentation (macro names, column titles, units) - Auditing and Error Checking Construction of Corporate Model - Discussion of Case - Construction of Working Analysis, Debt Structure and Financial Statements - Calculation of Debt and Cash Plugs - Use of History in Forecast - Scenario and Sensitivity Analysis - Template Corporate Model

4 Valuation of with Financial Models - Theory of Valuation and modeling of debt value - How, when and where to use alternative multiples in valuation - APV, free cash flow and cost of capital - Terminal Value

5 DAY THREE Project Finance and Case Study Valuation case study - Development of Value Drivers from Historic Data - Statistical Analysis of Multiples - Derivation of Cost of Capital - Presentation of Valuation Sensitivity and scenario analysis - Break-even analysis - Scenario analysis with macros and data tables - Sensitivity analysis and tornado diagrams Review of Project Finance - Project Finance terms - Contracts, Covenants, Waterfalls and Debt Service Reserves - Financial Ratios in project finance Construction of project finance model - Sources and uses of funds - Interest during construction - Debt repayment - Cash flow and internal rate of return Application of Monte Carlo Simulation to Project Finance - Computation of Volatility and Time Series Equations - Incorporation of Monte Carlo in Financial Models - Measurement of Probability of Default and Value at Risk Case study: apply project finance model in investment and credit analysis

6 Expert Trainer Edward Bodmer Dr. Edward has over 28 years of experience in financial/valuation modelling, project finance, investment, credit, and he has played a key role restructuring complex financial projects across Asia, Middle East and Europe. He has worked on mix of investment projects including Mezzanine Financing and acquisition. Dr. Edward has worked on corporate transactions that involved joint venture equity, mezzanine debt, bonds, credits and other non-conventional financing sources and he has provided training and consulting work to leading institutions: Bank of China, Asian Development Bank, Temasek Holding Singapore, DBS Hong Kong, PwC, KPMG, E&Y, Citigroup Brunei Investment Agency and HSBC. Dr. Edward is an internationally recognized authority on the principles and practice of in structured finance, corporate finance and investment techniques. His career combines both direct involvement as advisor as well as extensive consulting experience in the financing and investment internationally. Dr. Edward regularly presents and consults to a range of clients including banks, fund managers, corporate, government bodies, investment and other advisors, where his practical market-focused approach is highly valued especially on: _ Advanced Financial Modelling _ Valuation Modelling _ Investment Cash Flow & Forecasting Models _ Corporate Finance & Restructuring Strategies _ Real Options Pricing Models _ Risk Analysis and Monte Carlo Simulation _ Structuring Complex Models Project Financing _ Acquisition Modelling _ Mergers & Acquisition Modelling As part of his consulting activities, Professor Edward has created a wide variety of models for energy companies, investment banks, commercial banks and government agencies. He does combine an extensive experience in modelling different facets in different financial markets. Some of the recent tasks include modelling the fixed income attribution of a multinational asset management company and developing the Basel II market risk model for a major institution in Asia, Africa and Middle East. He designed and implemented a financial & valuation model in an asset management company. Dr. Edward also has consulted on modelling/finance projects in the USA, Hong Kong, Philippines, Singapore, Vietnam, Brunei and Dubai. Dr. Edward formerly Vice President at the National Bank of Chicago where he directed and created financial modelling techniques used in advisory projects. He received a BSc in Finance (with highest university honors) MBA and PhD specializing in econometrics (with honors) from CBS Chicago University.

7 Certification Terrapinn Training is a member of the CPD Certification Service. CPD Continuing Personal or Professional Development - is the term that describes a commitment to structured skills enhancement and personal or professional competence. The CPD Certification Service helps organisations provide certified CPD and acts as a point of contact for those seeking to obtain certified CPD material. It supports further learning initiatives being undertaken by Government, professional institutions, trade associations, individual organisations, training providers, suppliers and so on. More information can be obtained at