Financial Modeling & Valuation

This course is designed for financial analysts, investment professionals, accountants, business consultants, and corporate finance professionals. It is ideal for individuals who are involved in financial analysis, modeling, budgeting, forecasting, and valuation. This course is also beneficial for anyone seeking to enhance their understanding of financial modeling techniques and valuation methods in decision-making processes.

Day 1: Introduction to Financial Modeling

• Overview of financial modeling: What it is and why it's essential
• Key components of a financial model: Income statement, balance sheet, and cash flow statement
• Forecasting financial statements: Revenue, expenses, and profit
• Building a simple financial model in Excel
• Best practices for financial model structure and design
• Practical exercise: Building a basic financial model
• Case study: Analyzing the financial health of a company using a basic model

Day 2: Building Advanced Financial Models

• Forecasting techniques for more complex financial models
• Sensitivity analysis and scenario modeling
• Incorporating debt, equity, and capital structure into financial models
• Working with circular references and advanced Excel functions
• Integrating operational data with financial models
• Practical exercise: Creating a more advanced financial model incorporating assumptions and drivers
• Case study: Building a model for a company's expansion or acquisition

Day 3: Valuation Methods - Discounted Cash Flow (DCF)

• Understanding the concept of discounted cash flow (DCF) and its importance
• Forecasting free cash flows and determining the discount rate
• Calculating terminal value and NPV (Net Present Value)
• Sensitivity analysis in DCF models
• Practical exercise: Building a DCF model for a company
• Case study: Applying DCF analysis to assess the value of a company

Day 4: Valuation Methods - Market Comps and Precedent Transactions

• Introduction to market comparable (comps) and precedent transactions methods
• Identifying relevant comparable companies or transactions
• Calculating key multiples: EV/EBITDA, P/E, and others
• Adjusting for differences in size, risk, and growth rates
• Practical exercise: Performing a market comps valuation for a company
• Case study: Using precedent transactions to assess a company’s market value

Day 5: Mergers & Acquisitions (M&A) and Leveraged Buyout (LBO) Models

• Introduction to M&A and LBO models and their applications
• Key drivers in M&A models: Synergies, financing, and deal structure
• Building an M&A model in Excel: Sources and uses of funds, pro forma analysis
• Leveraged buyouts (LBO): Understanding debt structure and return on equity
• Practical exercise: Building an M&A or LBO model for a company
• Case study: Valuing a company using an LBO model and analyzing potential returns