Financial Modelling Using Excel

Improve your valuation modelling skills in project financing, international corporate structuring and M&A, and achieve an optimal decision-making process

Course Highlights

Certainly one of the best course I have attended. High quality lecturer

A.K., CDC Globeleq

How to design a model to suit your purpose
Valuation modelling using conventional and new approaches
Accurate forecasting corporate cash flows for project finance deals and structures
How to identify and control key sensitivities through advanced spreadsheet simulation
How to build risk into your model to enhance the decision making process
How to design a model to maximise flexibility and reliability
Practical tips for checking and debugging the model

For details of the course trainer, please download the course brochure

Booking Information

Dates	Prices	Discount
06 - 06 Jul 2009	£ 799	-
07 - 09 Jul 2009	£ 2299	-
23 - 23 Nov 2009	£ 799	-
24 - 26 Nov 2009	£ 2299	-
10 - 10 May 2010	£ 799	-
11 - 13 May 2010	£ 2299	-

You can also book Financial Modelling Using Excel & Financial Modelling Using Excel together at discounted price £2999.00. For more details about Financial Modelling Using Excel click here.

Course Programme

Certainly one of the best course I have attended. High quality lecturer

A.K., CDC Globeleq

Lots of relevant examples used...Very clear at explaining problem errors

K.I., Rolls-Royce Power Ventures

Optional One-Day Pre-Course Workshop

To fully benefit from the Financial Modelling course it would benefit if you were familiar with various excel tools and features that are frequently encountered in financial models. This optional workshop will prepare the way for the subsequent course by illustrating and giving participants many practical items, including those listed below:

naming conventions and methodologies
outlines
worksheet and cell protection
concatenation
array formulas
array functions
consolidation
filters
pivot tables
goal seek
data validation
conditional formatting
recording macros
editing macros
auditing tools
hyperlinks
LOOKUP functions
IF functions
DATE functions

If you feel you would benefit from brushing up your skills on any of the above functions this workshop will prove invaluable for you in order to gain maximum benefit from the course.

Your Comprehensive Course Programme

The practical aspect of the course revolves around the building of a cashflow and financial statement forecast of a company, ensuring that all the drivers are appropriate, that the modelling logic and the accounting treatments are sound and that modelling best practice is applied. This first stage of the course also deals with the issues of multiple currencies, high inflation, tax and distributable reserves.

With the financial statements forecasted, the application of DCF to the figures is illustrated and the model is then subjected to sensitivity analysis. A pricing model, as distinct from a valuation model, is also reviewed and investigated.

The course also deals with the different approaches to modelling structured financings, where the volatility of the cashflow (as opposed to its value) is the key to determine serviceability of a stressed financing structure. The design and implementation of scenarios, as well as the sensitivity and breakeven analysis, are extensively covered.

Common to both borrowers and lenders is the financing worksheet – the complexities of handling multiple tranches of finance with flexible input variables and the associated interest calculations are the subject of an additional practical exercise.

In addition to the practical exercises, delegates will review models that illustrate a wide range of issues, encompassing the sectors of MBOs, venture capital and limited recourse financings.

Illustration of Model Types

Cashflow forecasting and DCF valuation models using publicly available information
Reverse-flow forecasting models for emerging markets or sectors, where the output is the business plan that needs to be achieved
Transaction structuring models (e.g. project finance, MBOs, LBOs) to capture volatility and structural robustness as well as IRR
Statistical probability models – simulations
Pricing models

Model Design

Identifying the purpose and mode of use of the model
Designing the analysis worksheet
Determining the flexibilities required and the variable inputs
Best practice issues:
- maintaining a log
- status worksheet
- hard coding, SE flow, consistent formulae
- naming conventions, formatting conventions
- consistent timelines, flexibility to change timelines
Circular references
- which are permissible and which are not
- work-arounds if the model needs to be audited
Macros
- the dangers and the precautions that should be taken
- editing, to minimise complications

Forecasting Corporate Cashflows – practical

When, and when not, to use generic models
Modelling of demand side businesses contrasted with supply side businesses
Modelling logic
Separating volume and price drivers
Operating cost drivers
Capital investment, capacity and output linkages
Investment expenditure drivers
Financing interactions

Accountancy Impacts

Deriving depreciation
Tax treatment; the cash effect of taxes; deferred tax
Processing capital allowances in place of depreciation
Capitalisations and provisions
Deriving distributable reserves

Implementation of Analysis – practical

Structuring the analysis worksheet
Optimising the model for sensitivity analysis
Implementing scenarios
Implementing a break-even analysis
Using ‘goal seek’ in looping routines
The problems with NPV, and Excel’s alternatives
The greater problem of IRR, and Excel’salternatives

Valuations

Applying valuation techniques to the corporate cash flow that has been prepared
Discounting free cash flow
Sensitising the valuation range
Graphing comparatives for pricing estimation

Transaction Structuring

The central focus of cash flow volatility
Why the modelling approach changes for project finance, LBOs, MBOs, venture capital and aggressive M&A situations
Asymmetric assumption-setting to stress test financing structures
Forensic modelling of cost structures
Quantifying risk and determining optimal allocation
Adapting finance structures dynamically
Establishing, running and analysing scenarios
Shifting time frames with ease

Financing – practical

Different structures for loan amortisation
Implementation of annuity-based payments
Implementation of straightline amortisation to be dynamic
Modelling interest expense accurately without circular reference
Sculpting loan amortisation to the cash flow
Debt capacity calculations

Management Buy-Outs

Exit timing and exit multiples
Modelling multiple tiers of financing interactively
Equity ratchets

Various Modelling Issues

Dealing with foreign currencies and analysing resulting risks
Modelling in emerging markets
Interfacing statistical probability models to deterministic models