Financial modelling Course- 3 days - London

 Location: London (Central)

Course day 1 – core financial modelling build up

Course delegates complete their own financial model build up in pre-set “stages”. They save their work in clear steps as they go. At the end of the course they have a record of their own work (each completed stage of their model) plus refresher notes supplied by the lecturer.

• Planning assumptions
• Obtaining source data
• Coding inputs
• Structuring assumptions and anticipating scenario analysis
• Modelling and formatting best practice
• Good model structure
• Good model design

Modelling. Delegates are introduced to a case study and a set of financial statements.  Participants use that starting point to begin creating their own model.

• Starting to forecast the income statement
• Starting to forecast the P&L from key assumptions
• How far can we progress?
• What’s stopping us from continuing?
• Key drivers for modelling
• Key ratios driving the forecast
• Drivers on revenues
• Drivers on costs
• Sources of data

Modelling.  Course delegates add to their financial model and forecast out the income statement as far as pre-tax earnings.

• Modelling fixed assets
• Forecasting assets
• Key drivers on asset intensity
• Capital expenditure
• Depreciation
• Forecasting depreciation

Modelling.  Delegates analyse and forecast fixed assets, depreciation and capital expenditure.

• Completing the balance sheet
• Drivers for balance sheet items
• Which creditors can we stretch, and by how much?
• How quickly can we collect debtors?
• Forecasting the balance sheet
• Impacts on cash flow
• Is growth good?
• Linking to other statements
• Balancing the balance sheet

Modelling.  Course delegates use their financial model to forecast a balance sheet for the case study.

Course day 2 – getting to cash flow, modelling a new deal

Course delegates complete their model. Then they start to look at how to, for example, use the financial model to analyse a new and revised deal structure.

• Modelling debt
• Forecasting a simple debt schedule
• Linking to other statements
• Tools for resolving circularity
• Setting debt paydown

Modelling.  Delegates forecast a debt pay-down schedule for their case study.

• Cash flow
• Modelling the cash flow statement
• Key linkages to other statements
• Presenting the cash flow statement
• Forecasting cash flow to equity
• Forecasting unlevered cash flow

Modelling.  Using their model, delegates forecast levered and unlevered free cash flow.

• More advanced Excel exercise: modelling a new deal
• Developing a new structure for a new deal the client is contemplating
• Modelling sources & uses of funds
• Developing a “first cut” debt structure
• Calculating refinancing needs
• The role of working capital and extra cap ex requirements
• Typical financing and transaction fees
• The impact on the model: calculating goodwill and the pro-forma balance sheet

Course day 3 – more advanced financial modelling topics

• Modelling detailed debt structures: determining debt capacity and structuring debt
• High level explanation of different debt instruments, with a focus on how you might actually model more complicated debt instruments
• Senior debt
• High-yield debt
• Mezzanine
• Payment-in-Kind
• Understanding the nature of different financial instruments and risk profiles
• Modellng waterfall structures
• Estimating and optimising debt capacity

Modelling.  Course delegates look at debt structuring work completed by a major investment bank. Working in teams, can you see what this analyst has done wrong? Delegates work together to do a better job of modelling a complicated debt structure. How can this work be used to test debt capacity for the transaction?

• Performing scenario and sensitivity analysis in the financial model
• What scenarios make the most sense?
• How can we structure the financial model to run those scenarios easily?
• What happens to our outputs as the model is stressed?
• How can we best present the information?
• Instant scenario switching with drop down boxes

Modelling.  Course delegates develop a suite of scenarios for their model, setting the model up so that it contains a full record of scenarios and the user can switch very quickly between them using drop down boxes

• Defining key outputs in financial modelling
• What are the most important outputs?
• How can they be presented clearly?
• How can we put for example, anticipated sales, capital expenditure and working capital plans into context?

Modelling.  Delegates complete a new sheet within their financial model - something that contains key outputs and credit statistics and is quickly and easily readable.

• Excel modelling help
• Delegates are provided with the opportunity to ask for help with particular Excel functions
• Use of these functions is demonstrated in class and supplemented with exercises which the class works through together

Spreadsheet exercises.  Useful functions in Excel.

• Lessons in good modelling practice
• During the course delegates work to create their own models, establishing and observing spreadsheeting best practice as they progress
• Good modelling techniques are observed throughout the course, discussed in groups and demonstrated during the program
• At the end their time participants finish with their own modelling work (which they have created following modelling best practice) plus a hard copy and permanent record of “modelling tips”

Course categories:Research Courses, Research Inhouse

COVERED TOPICS

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1,650.00

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Price: 1,650.00 GBP
Location: London (Central)
Event date: 26.06.2012 - 28.06.2012
Event duration: 3 Days
Event time: 09.30 h - 17.30 h

ADDITIONAL DATES

CONTACT US

Email: info@financialveritas.com

Phone: +44 208 133 5917