School Of Corporate Finance

The School of Corporate Finance is a unique figure in the world of corporate finance training. Designed to be a total immersion course that focuses on the complete spectrum of corporate finance transactions. The course is a state-of-the-art guide to modern corporate finance best practice.

Course Highlights

Five reasons why you MUST attend this course:

The residential nature of this programme allows the inclusion of case studies with a deeper level of appreciation and understanding
This programme will bridge the gap between theory and market practice, providing recommendations of how the techniques should be applied in different decision-making contexts
The course looks at transactions from the viewpoint of the company itself, debt financiers, and shareholders – and highlights the negotiation and commercial issues that arise from the differences in perspective
In addition to the comprehensive course materials, each participant leaves the course with a CD-ROM loaded with excel files and additional reading material on a wide range of corporate financing topics
It will be tailored specifically to your needs. Intensive coverage and case studies will focus on the industries and sectors that YOU choose

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

Booking Information

Dates	Prices	Discount
18 - 22 Oct 2010	£ 4999	-
11 - 15 Apr 2011	£ 4999	-
12 - 16 Sep 2011	£ 4999	-

Course Programme

DAY ONE

Introductory Issues

What is corporate finance?
Theory vs practice
Value drivers
The central role of risk
Overview of valuation and pricing methodologies
Why markets are not perfect, and the implications arising therefrom
The financial market cycle

Getting to Grips with Free Cash Flow

Its derivation
Why it is important
Role in cash management
Role in valuation
Role in transaction structuring

Understanding Financial Structuring

Operating leverage
Growth strategies
Liquidity
Is there an optimal capital structure?
Reaction of the financial markets to volatility

Review of General Skills

Continuous stream discounting
Lump sum discounting

The Practicalities of Valuation

Return on capital
The cost of capital
Currency issues
Risk free rates and substitutes if unavailable
The market premium - traditional approaches
New world and paradigm theory
Corporate betas, sectoral betas, when are they a good proxy for cash flow volatility
When betas are not available or are ‘corrupted’ – what to do
Investment horizons
The ongoing period
Obsolescence and dilution
Sensitivity analysis to determine the valuation range

Case Study 1: Performing a Valuation and Sensitivity Analysis

DAY TWO

Demystifying Pricing Techniques

Determining appropriate comparative businesses
P/E, EBITDA, EBIT multiples
Total enterprise value
Relative growth rates
Accounting issues in comparative analysis
Cash multiples
Total enterprise value
Comparative ratios
Non-financial multiples

Getting to Grips with Emerging Markets

Inverse derivation of the growth rate or the market penetration required
Issues with risk free rate, market premium and betas
Availability of substitutes
When to acknowledge value is speculative

Case Study 2: Determining a Business and Financing Strategy

Project Appraisal Techniques

Differential cash flows
Decision-making
The role of option pricing in valuations
Sensitivity analysis

Adaptive Situations

Dividend valuation, problems, and when to use it
The effect of leverage, and whether and when betas should be levered
‘Adjusted present value’
Acquisitions
The valuation of private companies

DAY THREE

Understanding Leverage

The effect of leverage on value – contrasting schools of thought
The structure and objectives of private equity funds
The analysis of a business in the context of a leveraged buyout
The financing structures typical to LBOs
Coverage requirements of senior financiers
Adaptations for MBOs – management ratchets
Platform MBOs
The range of exit options, the impact on IRR, sensitising the analysis
Frequently-encountered errors in IRR calculations
Legal complications
Modelling LBOs
Currencies - balance sheet hedging, cash hedging or value hedging – which way to go?

Case Study 3: Analysing a Candidate for an LBO and determining Financing Structure

Modelling Corporate Cash flows

Modelling logic
Modelling risk
Valuation models, transactions structuring models and equity models
Corporate cash flow forecasts
Modelling currencies
Cost drivers
Dealing with escalation
Volatility and sensitivity
Implementing scenarios
Carrying out a break-even analysis

Exercises: Various hands-on modelling tasks

DAY FOUR

A Review of Recent Changes

The European Takeovers Directive – changes from 2006
IAS 39 – accounting for financial instruments, and the conduct of hedge accounting

The Importance of Shareholder Value

Evaluation of managerial performance
The calculations for Economic Value Added
The analytical approach
How EVATM aids strategy formation
Market Value Added

Case Study 4: Implementing an EVATM Analysis and Identifying Strategy that Should be Adopted

Raising Equity

Benefits of flotation
Perspective of equity-raising approaches
Walk-through of an IPO
Underwriting, book-building, market stabilisation
Secondary issues – the different methodologies

DAY FIVE

Mastering Acquisitions

The European Directive to be enacted by member state by May 2006
The features that will be common across Europe
Pricing and valuing the target
The benefits of a recommendation
Negotiation ‘timetable’ for an agreed offer
The advantages of a share-for-share offer
The pros and cons of an all cash offer
Purchase of assets or shares
Tax and accounting considerations
Earn-outs
Financial assistance under s.151 (or the equivalent in other OECD jurisdictions)

Contested Bids

Poison pills and shark repellents
Planning the strategy and the tactics
Timetable and Blue Book regulations
Comparison to other jurisdictions
Debt financing complications
Equity financing complications
Vendor placings
Concert parties
Initial shareholdings and share dealing
Offer structure and price
Conditions attached to the offer
Control

Case Study 5: Planning and Implementing a Contested Acquisition