Financial Modeling And Valuation Training Course: Building The Tools For Investment Success

Introduction:

Financial modeling and valuation are essential skills for anyone involved in investment analysis, corporate finance, or financial decision-making. This Financial Modeling and Valuation training course provides you with the practical tools and techniques to build robust financial models and accurately value businesses and assets. You'll learn how to project financial statements, estimate cash flows, apply valuation methodologies (DCF, comparable company analysis, precedent transactions), and analyze the results to make informed investment decisions. From building a simple three-statement model to valuing complex financial instruments, this course empowers you to master the art of financial modeling and valuation.

Target Audience:

This course is designed for professionals and individuals seeking to develop and enhance their financial modeling and valuation skills. The target audience includes:

• Financial analysts and associates
• Investment bankers and private equity professionals
• Corporate finance professionals
• Equity research analysts
• Portfolio managers
• Anyone seeking to build financial models and perform valuations

Course Objectives:

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

• Build robust and dynamic financial models in Excel.
• Project financial statements (income statement, balance sheet, cash flow statement).
• Estimate free cash flows and apply appropriate discount rates.
• Perform Discounted Cash Flow (DCF) valuations.
• Conduct Comparable Company Analysis and Precedent Transaction Analysis.
• Value different types of assets, including businesses, projects, and financial instruments.
• Analyze valuation results and sensitivity analysis.
• Understand the key assumptions and drivers of financial models.
• Apply financial modeling and valuation techniques to real-world scenarios.
• Enhance their financial analysis and decision-making skills.

Duration

10 Days

Course Content

Module 1: Introduction to Financial Modeling and Valuation

• The role of financial modeling in decision-making: Investment analysis, corporate finance, etc.
• Key concepts and principles of valuation: Time value of money, risk and return.
• Overview of different valuation methodologies: DCF, comparable company analysis, precedent transactions.
• Course overview: Structure, learning objectives, software tools (Excel), and assessment methods.

Module 2: Building a Three-Statement Financial Model

• Setting up the model in Excel: Best practices for layout, formulas, and formatting.
• Projecting the income statement: Revenue drivers, cost assumptions, and expense projections.
• Projecting the balance sheet: Asset, liability, and equity projections.
• Projecting the cash flow statement: Linking the income statement and balance sheet.

Module 3: Forecasting and Key Assumptions

• Forecasting techniques: Historical analysis, trend analysis, and driver-based forecasting.
• Key assumptions and drivers: Identifying the most important factors impacting the business.
• Sensitivity analysis: Assessing the impact of changes in assumptions on model outputs.
• Scenario planning: Developing different scenarios based on varying assumptions.

Module 4: Discounted Cash Flow (DCF) Valuation I: Free Cash Flow

• Free cash flow (FCF): Calculating FCF from projected financial statements.
• Capital expenditures (CAPEX) and working capital: Forecasting investments and changes in working capital.
• Terminal value: Estimating the value of the business beyond the projection period.
• Discount rate: Estimating the weighted average cost of capital (WACC).

Module 5: Discounted Cash Flow (DCF) Valuation II: Discount Rate and Terminal Value

• Weighted average cost of capital (WACC): Calculating the WACC using the cost of equity and debt.
• Cost of equity: Estimating the cost of equity using the Capital Asset Pricing Model (CAPM) or other methods.
• Terminal value calculation: Perpetuity growth method and exit multiple method.
• Discounting free cash flows: Calculating the present value of future cash flows.

Module 6: Comparable Company Analysis

• Selecting comparable companies: Identifying companies with similar business characteristics.
• Calculating valuation multiples: Price-to-earnings (P/E), enterprise value-to-EBITDA (EV/EBITDA), price-to-sales (P/S), etc.
• Applying multiples to the target company: Estimating the target's valuation based on comparable company multiples.
• Analyzing the strengths and weaknesses of comparable company analysis.

Module 7: Precedent Transaction Analysis

• Identifying precedent transactions: Finding similar transactions involving the sale of comparable companies.
• Analyzing transaction multiples: Calculating multiples based on transaction values.
• Applying multiples to the target company: Estimating the target's valuation based on precedent transaction multiples.
• Analyzing the strengths and weaknesses of precedent transaction analysis.

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

• Accretion/dilution analysis: Assessing the impact of an acquisition on earnings per share (EPS).
• Pro forma financial statements: Projecting the combined financial statements of the merged entity.
• Synergies and integration costs: Incorporating synergies and integration costs into the model.
• Deal structuring and financing: Analyzing different deal structures and financing options.

Module 9: Leveraged Buyout (LBO) Modeling

• LBO structure: Understanding the key players and financing components.
• Building an LBO model: Projecting cash flows and returns to equity investors.
• Sensitivity analysis: Analyzing the impact of different assumptions on LBO returns.
• Key metrics in LBO analysis: IRR, cash-on-cash return, and debt repayment schedule.

Module 10: Valuation of Different Asset Types

• Valuing real estate: Discounted cash flow analysis and comparable sales approach.
• Valuing intangible assets: Patents, trademarks, and brand value.
• Valuing financial instruments: Bonds, stocks, and derivatives.
• Valuing startups and early-stage companies.

Module 11: Advanced Financial Modeling Techniques

• Building dynamic models: Incorporating circular references and iterative calculations.
• Using macros and VBA for automation.
• Data visualization and dashboarding: Presenting financial model outputs effectively.
• Error checking and model validation.

Module 12: Case Studies and Best Practices

• Case studies: Applying financial modeling and valuation techniques to real-world scenarios.
• Best practices in financial modeling: Building robust, user-friendly, and auditable models.
• Common mistakes to avoid in financial modeling.
• Ethical considerations in financial modeling and valuation.

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 7 working days before commencement of the training.