Advanced Financial Modeling: Mastering Forecasting, Valuation, And Scenario Analysis

Introduction:

Advanced Financial Modeling is essential for making informed strategic decisions in today's complex financial landscape. This comprehensive training course equips participants with the specialized skills to build sophisticated financial models for forecasting, valuation, and scenario analysis. Participants will learn how to leverage advanced techniques, integrate various data sources, and develop robust models that provide actionable insights. This course bridges the gap between theoretical finance and practical model building, empowering professionals to drive strategic decision-making.

Target Audience:

This course is designed for financial professionals who want to enhance their financial modeling skills, including:

• Financial Analysts
• Investment Bankers
• Corporate Finance Professionals
• Equity Research Analysts
• Consultants
• Anyone involved in financial forecasting and valuation

Course Objectives:

Upon completion of this Advanced Financial Modeling training course, participants will be able to:

• Build complex financial models for forecasting, valuation, and scenario analysis.
• Integrate various data sources (financial statements, market data, etc.).
• Develop robust forecasting methodologies (e.g., time series analysis, regression analysis).
• Perform detailed financial valuations (e.g., DCF, comparable company analysis, precedent transactions).
• Conduct comprehensive scenario and sensitivity analysis.
• Model complex financial instruments and transactions.
• Utilize advanced Excel functions and modeling techniques.
• Communicate financial model outputs effectively to stakeholders.
• Enhance their ability to make data-driven financial decisions.
• Improve their efficiency and accuracy in financial modeling.
• Contribute to improved financial planning and strategic analysis.
• Stay up-to-date with the latest trends and techniques in financial modeling.
• Become a more valuable and sought-after financial modeling professional.
• Understand ethical considerations in financial modeling.
• Learn how to use financial modeling software and tools.

DURATION

10 Days

COURSE CONTENT

Module 1: Foundations of Advanced Financial Modeling

• Introduction to advanced financial modeling concepts.
• Review of core financial statements and their interrelationships.
• Best practices in model design and structure.
• Understanding the importance of assumptions and drivers.
• Ethical considerations in financial modeling.

Module 2: Advanced Excel Techniques for Financial Modeling

• Advanced functions (INDEX, MATCH, OFFSET, INDIRECT, etc.).
• Dynamic range naming and data validation.
• Error handling and auditing techniques.
• Working with large datasets and external data sources.
• Macros and VBA for model automation.

Module 3: Forecasting Methodologies and Techniques

• Time series analysis and forecasting (ARIMA, exponential smoothing).
• Regression analysis and predictive modeling.
• Developing driver-based forecasting models.
• Integrating macroeconomic and industry data.
• Forecasting financial statement line items.

Module 4: Building Integrated Financial Statement Models

• Developing a three-statement model (income statement, balance sheet, cash flow statement).
• Linking financial statements and ensuring consistency.
• Modeling working capital and capital expenditures.
• Incorporating debt and equity financing.
• Developing dynamic financial statements.

Module 5: Discounted Cash Flow (DCF) Valuation

• Understanding the DCF valuation methodology.
• Calculating free cash flow to firm (FCFF) and free cash flow to equity (FCFE).
• Estimating the weighted average cost of capital (WACC).
• Determining the terminal value.
• Performing sensitivity analysis on DCF assumptions.

Module 6: Comparable Company Analysis (Comps)

• Identifying comparable companies and selecting relevant metrics.
• Calculating valuation multiples (P/E, EV/EBITDA, etc.).
• Adjusting for differences between companies.
• Analyzing valuation ranges and distributions.
• Applying comps in different industry contexts.

Module 7: Precedent Transaction Analysis (Precedents)

• Identifying relevant precedent transactions.
• Analyzing transaction multiples and deal terms.
• Adjusting for deal-specific factors.
• Evaluating transaction premiums and synergies.
• Using precedents in M&A valuation.

Module 8: Mergers and Acquisitions (M&A) Modeling

• Building accretion/dilution models.
• Modeling purchase price allocation (PPA).
• Analyzing synergies and integration costs.
• Developing pro forma financial statements.
• Evaluating M&A deal feasibility.

Module 9: Leveraged Buyout (LBO) Modeling

• Understanding the LBO transaction structure.
• Modeling debt financing and repayment schedules.
• Calculating returns and internal rate of return (IRR).
• Performing sensitivity analysis on key LBO assumptions.
• Analyzing exit strategies and valuation.

Module 10: Scenario and Sensitivity Analysis

• Developing scenario planning frameworks.
• Performing sensitivity analysis on key model drivers.
• Creating tornado charts and spider diagrams.
• Analyzing the impact of different assumptions on valuation.
• Communicating scenario and sensitivity analysis results.

Module 11: Modeling Complex Financial Instruments

• Modeling debt instruments (bonds, loans, convertibles).
• Modeling equity instruments (options, warrants, preferred stock).
• Modeling derivatives and hedging strategies.
• Valuing complex financial instruments.
• Understanding the accounting treatment of financial instruments.

Module 12: Project Finance Modeling

• Understanding project finance structures and risks.
• Modeling project cash flows and financing.
• Calculating project returns and feasibility metrics.
• Analyzing project risks and mitigation strategies.
• Developing project finance documentation.

Module 13: Real Estate Financial Modeling

• Modeling real estate development and investment projects.
• Analyzing property cash flows and valuation.
• Understanding real estate financing and taxation.
• Performing sensitivity analysis on real estate assumptions.
• Developing real estate investment models.

Module 14: Communicating Financial Model Outputs

• Developing clear and concise model documentation.
• Creating effective presentations and reports.
• Visualizing model outputs using charts and graphs.
• Communicating key assumptions and limitations.
• Tailoring communication to different audiences.

Module 15: Advanced Topics and Case Studies

• Integrating ESG factors into financial models.
• Using financial modeling software and tools.
• Developing dynamic dashboards and interactive models.
• Case studies of real-world financial modeling applications.
• The future of financial modeling and emerging trends.

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. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute 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 Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.