Financial modelling is a critical skill in business valuation for professionals working in corporate finance and investment. Modelling goes beyond number crunching and requires the ability to incorporate macroeconomic and business inputs into financial models. The output of these models are used in setting the stage for negotiations and decision making around buying or selling a business.

The Practical Financial Modelling and Valuation workshop aims to equip participants with the foundations of valuing a business, including hands-on practice using excel to build basic financial statements.

Participants will learn how to perform scenario analyses, structure discounted cash flow to derive the value of a business. The model developed in-class can be used as a basis for developing more advanced and bespoke models used for diverse industries.

The course extends the core theory introduced in Principles of Finance by emphasizing its practical application to strategic financial decisions and potential financial problems.

Duration:           5 Days

Who Should Attend?

• Financial Analysis
• Business Entrepreneurs
• Accountants
• Bookkeepers
• Business managers
• Investment officers
• Managing directors

Course Objective:

• Analyzing and understand an income statement
• Analyzing and understand a balance sheet
• Analyzing and understand a cash flow
• Understanding use of financial modeling in financial reporting
• Use of Discounted Cash Flow (DCF) and Weighted Average Cost of Capital
• Use of excel in financial modelling

Course Content

Module 1: Valuation

Introduction to valuation

• The importance of valuation
• Understanding enterprise value and equity value

Comparable Company Analysis

• Selecting comparable companies
• Spreading comparable companies
• Analyzing the valuation multiples
• Concluding and understanding value

Precedent Transactions Analysis

• Selecting comparable transactions
• Spreading comparable transactions

Discounted Cash Flow (DCF) analysis

• Understanding unlevered free cash flow
• Forecasting free cash flow
• Forecasting terminal value
• Present value and discounting
• Understanding stub periods
• Performing sensitivity analysis

Weighted Average Cost of Capital (WACC)

• Using the CAPM to estimate the cost of equity
• Estimating the cost of debt
• Understanding and analyzing WACC

Module 2: Building an Integrated Cash Flow Model

Introduction to financial modeling

• Understanding the links between the financial statements
• Understanding circularity
• Setting up and formatting the model
• Selecting model drivers and assumptions

Modeling and projecting the financial statements

• Projecting the income statement
• Projecting the balance sheet
• Projecting the cash flow statement
• Creating the debt and interest schedule
• Revolver modeling

Analyzing and concluding the model

• Analyzing the output
• Stress testing the model
• Fixing modeling errors
• Advanced modeling techniques
• Using the model to create a Discounted Cash Flow (DCF) Analysis

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement.

Training Venue 

The training will be held at our Upskill Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request.

Terms of Payment: Unless otherwise agreed between the two parties, payment of the course fee should be done 3 working days before commencement of the training to enable us to prepare better

Course Booking

Please use the “book now” or “inquire” buttons on this page to either book your space or make further enquiries.