Advanced Company Analysis, Valuation & Financial Modelling

5 days 6-10 Nov 2017, Singapore Singapore $6,800.00 Download brochure Add to basket
5 days 19-23 Nov 2017, Manama Bahrain £3,295.00 Download brochure Add to basket

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Overview

**Before registering on this course please email us directly to complete a pre course questionnaire. This is to ensure that the course fits your exact requirements**

A 5-day case study based workshop exploring issues in company valuation and financial modelling.

Company valuation is used for the purposes of investment, M&A or as part of internal measures of financial control. It is extensively applied when companies issue new shares, divest operations or acquire other companies.

This highly practical course will lead you quickly from the basics through to the more advanced valuation methodologies and modelling techniques.

Highlights include:

  • Building a comprehensive financial model.
  • Understanding business models.
  • Absolute valuation methods DCF, EVA and CFROI.
  • Developing an appropriate cost of capital.
  • Decomposing sources of return.
  • Using comparative valuation measures.
  • Understanding the basics of real options.
  • Dealing with intangibles.
  • Valuing fast growing companies.

Course Methodology

This practical, hands on programme is taught using formal lectures combined with practical and interactive case studies and exercises to reinforce the concepts covered in each teaching session. Emphasis is placed on delegates gaining practical, hands-on experience of the various valuation techniques. Case studies from recent deals are included, as are practical exercises involving problem areas in valuation.
The seminar also includes critiques of the conventional techniques and considers suitable alternatives to be deployed in differing circumstances as well as an update on the latest valuation reporting guidelines and their interpretation.

Who should attend

This course is aimed at those with a solid financial background who wish to explore the more advanced aspects of financial modelling and valuation methodologies, including:

  • Investment Bankers
  • Equity Analysts
  • M&A Professionals
  • Fund Managers
  • Treasurers and Finance Directors
  • Commercial Bankers
  • Private Equity & Venture
  • Capital Specialists
  • Business Analysts

 

Who should attend

This course is aimed at those with a solid financial background who wish to explore the more advanced aspects of financial modelling and valuation methodologies, including:

  • Investment bankers
  • Equity analysts
  • M&A professionals
  • Fund managers
  • Treasurers and finance directors
  • Commercial bankers
  • Private equity and venture capital specialists
  • Business analysts

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Singapore
Sarah Martin

Former Executive Director of CSFB and Lehman Brothers, the Course Director has spent seventeen years working as an investment banker in Europe and the US. She has principally worked in the credit markets and has experience of the US and European high grade and high yield markets, the European new issue markets, the Asian convertible bond markets and of corporate restructurings of distressed credits. She specialised in the telecoms sector and was closely involved in the structuring, raising and/or trading of bank and public debt for telecoms companies in many countries, including Europe, South Africa, Asia and Latin America. She also has extensive experience of corporate finance transactions, including mergers, disposals, privatisations, IPOs and capital raisings. Until 2003, she was an Executive Director at Lehman Brothers in Fixed Income Research in London, having also worked for CS First Boston and Kleinwort Benson. She now works on an independent basis advising the legal and private equity professions on credit analysis and company valuation. She has a degree in economics from the London School of Economics and stock exchange qualifications from London and New York.

 

Manama

Venue

Singapore

4-5 Star Hotel in Singapore

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Manama

Manama Hotel

This programme takes place on a non-residential basis at a central Manama Hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation.

 

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

inhouse-learn-more

We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1

Advanced Modelling

Overview

  • Why create a model
  • Review of good modelling practices

The main structure

  • Historic P&L information
  • Restating historic information
  • Non-recurring items
  • Historic B/S information
  • Non-core assets
  • Review of initial model for target company

Forecasting the income statement

  • Detailed revenue forecasts
  • Fixed vs variable costs: operating leverage
  • Hedging policies

Taxation issues

  • Current vs deferred tax
  • Estimating the effective tax rate
  • Operating losses: carry-back and carry forward

Fixed Assets

  • Understanding capital intensity
  • Maintenance vs expansion Capex
  • Understanding asset lives
  • Forecasting disposals
  • Impairment of assets
  • Dealing with intangible assets

Working Capital

  • Components of cash and non-cash working capital
  • Working capital ratios and their interpretation
  • The relationship between working capital and margins

Provisions

  • The different types of provisions and their accounting
  • Impact of provisions on valuation

Associates and investments

  • Accounting for associates and investments
  • Forecasting associates and investment income

Day 2

Advanced modelling and Multiples Based valuation

Equity financing

  • Minority interest- impact on equity financing
  • Common shareholders- forecasting dividends and retained earnings
  • Share buy-backs and rights issues

Debt Financing

  • Linking cash flow and debt requirements
  • Different types of debt financing

Scenario analysis

  • What are scenarios?
  • Developing flexible scenarios with excel
  • Review of completed model for target company

Advanced ratio analysis

  • Equity vs Enterprise value multiples
  • Definitions
  • Calculating EV: core vs non-core

Assessing liabilities

  • Dealing with different kinds of provisions
  • Dealing with pension liabilities
  • Hybrid financial instruments
  • Options
  • Off balance sheet liabilities

Equity multiples

  • What do equity ratios tell us?
  • Decomposing P/Es: linking growth, Cost of equity and RoE
  • Free cash flow yield

EV multiples

  • What do EV multiples tell us?
  • Choosing the most relevant multiples
  • Theoretical EV ratios

Interpreting ratios

  • Which ratios for which companies?
  • Different ratios different answers?

Implied Valuation

  • Valuing a one business company
  • Valuing a conglomerate: sum of the parts valuation
  • Valuing cyclical and fast growing companies
  • Interpreting results and deriving an implied valuation for the target company

Day 3

DCF and Cost of Capital

Cost of Capital

  • What the theory says
  • The elusive equity risk premium
  • Is Beta a reliable measure of risk?
  • Which cost of capital?
  • Whose cost of capital?
  • WACC in emerging markets
  • Valuing negative cash flows
  • Time Varying Cost of Capital

Forecasting FCF

  • Pitfalls in FCF calculation
  • Estimating normalised FCF
  • • Forecasting of FCF for target company

Terminal value

  • TV using the perpetuity method: volatility
  • Uses and misuses of the exit multiples’ approach
  • Liquidation value
  • Why the value drivers method gives more stable and meaningful results
  • Running sensitivities
  • Review of final dcf model

Day 4

Absolute valuations: Advanced issues

Understanding returns

  • Understanding ROCE
  • Components of Capital Employed
  • Decomposing ROCE
  • The ROCE “frontier”: trade-off between higher margins and higher asset turnover
  • The link between ROCE and ROE

Distortions in calculating ROCE

  • The impact of changing asset lives
  • The invisible assets: valuing intangibles
  • Historic capitalisation
  • Estimating the current value of intangibles

EVA as an alternative to DCF

  • Definition
  • Why use DCF and not DCF

The mathematical equivalence of EVA and DCF

  • Using EVA to better understand value creation
  • The potential pitfall of EVA
  • Building an EVA model

Valuing fast growing companies

  • The concept of fades
  • Fading ROCE and growth
  • Choosing an appropriate fade period
  • Impact of fades on DCF valuation

Day 5

Alternative methods and M&A issues

Scenarios and real options

  • Normal distributions and DCF
  • When the world is not normally distributed
  • Valuing companies using binomial distribution
  • Real options: myth or reality- the valuation
  • Building a binomial model for a biotech company

Valuing Distressed assets

  • Why DCF is not appropriate
  • Estimating default risks
  • Distressed assets as options

Mergers and Acquisitions

  • The drivers of M&A
  • Horizontal and vertical integration
  • Price
  • Strategy

Valuing the target

  • As a standalone
  • Valuing synergies
  • Estimating the price premium

Financing the acquisition

  • Using shares or cash
  • EPS accretion and dilution: does it reflect value added?

Modelling acquisitions

  • Accounting issues
  • New developments
  • Calculating Goodwill
  • Proforma balance sheet
  • Merging income statements

Course summary and close

Day 1

Advanced Modelling

Overview

  • Why create a model
  • Review of good modelling practices

The main structure

  • Historic P&L information
  • Restating historic information
  • Non-recurring items
  • Historic B/S information
  • Non-core assets
  • Review of initial model for target company

Forecasting the income statement

  • Detailed revenue forecasts
  • Fixed vs variable costs: operating leverage
  • Hedging policies

Taxation issues

  • Current vs deferred tax
  • Estimating the effective tax rate
  • Operating losses: carry-back and carry forward

Fixed Assets

  • Understanding capital intensity
  • Maintenance vs expansion Capex
  • Understanding asset lives
  • Forecasting disposals
  • Impairment of assets
  • Dealing with intangible assets

Working Capital

  • Components of cash and non-cash working capital
  • Working capital ratios and their interpretation
  • The relationship between working capital and margins

Provisions

  • The different types of provisions and their accounting
  • Impact of provisions on valuation

Associates and investments

  • Accounting for associates and investments
  • Forecasting associates and investment income

Day 2

Advanced modelling and Multiples Based valuation

Equity financing

  • Minority interest- impact on equity financing
  • Common shareholders- forecasting dividends and retained earnings
  • Share buy-backs and rights issues

Debt Financing

  • Linking cash flow and debt requirements
  • Different types of debt financing

Scenario analysis

  • What are scenarios?
  • Developing flexible scenarios with excel
  • Review of completed model for target company

Advanced ratio analysis

  • Equity vs Enterprise value multiples
  • Definitions
  • Calculating EV: core vs non-core

Assessing liabilities

  • Dealing with different kinds of provisions
  • Dealing with pension liabilities
  • Hybrid financial instruments
  • Options
  • Off balance sheet liabilities

Equity multiples

  • What do equity ratios tell us?
  • Decomposing P/Es: linking growth, Cost of equity and RoE
  • Free cash flow yield

EV multiples

  • What do EV multiples tell us?
  • Choosing the most relevant multiples
  • Theoretical EV ratios

Interpreting ratios

  • Which ratios for which companies?
  • Different ratios different answers?

Implied Valuation

  • Valuing a one business company
  • Valuing a conglomerate: sum of the parts valuation
  • Valuing cyclical and fast growing companies
  • Interpreting results and deriving an implied valuation for the target company

Day 3

DCF and Cost of Capital

Cost of Capital

  • What the theory says
  • The elusive equity risk premium
  • Is Beta a reliable measure of risk?
  • Which cost of capital?
  • Whose cost of capital?
  • WACC in emerging markets
  • Valuing negative cash flows
  • Time Varying Cost of Capital

Forecasting FCF

  • Pitfalls in FCF calculation
  • Estimating normalised FCF
  • • Forecasting of FCF for target company

Terminal value

  • TV using the perpetuity method: volatility
  • Uses and misuses of the exit multiples’ approach
  • Liquidation value
  • Why the value drivers method gives more stable and meaningful results
  • Running sensitivities
  • Review of final dcf model

Day 4

Absolute valuations: Advanced issues

Understanding returns

  • Understanding ROCE
  • Components of Capital Employed
  • Decomposing ROCE
  • The ROCE “frontier”: trade-off between higher margins and higher asset turnover
  • The link between ROCE and ROE

Distortions in calculating ROCE

  • The impact of changing asset lives
  • The invisible assets: valuing intangibles
  • Historic capitalisation
  • Estimating the current value of intangibles

EVA as an alternative to DCF

  • Definition
  • Why use DCF and not DCF

The mathematical equivalence of EVA and DCF

  • Using EVA to better understand value creation
  • The potential pitfall of EVA
  • Building an EVA model

Valuing fast growing companies

  • The concept of fades
  • Fading ROCE and growth
  • Choosing an appropriate fade period
  • Impact of fades on DCF valuation

Day 5

Alternative methods and M&A issues

Scenarios and real options

  • Normal distributions and DCF
  • When the world is not normally distributed
  • Valuing companies using binomial distribution
  • Real options: myth or reality- the valuation
  • Building a binomial model for a biotech company

Valuing Distressed assets

  • Why DCF is not appropriate
  • Estimating default risks
  • Distressed assets as options

Mergers and Acquisitions

  • The drivers of M&A
  • Horizontal and vertical integration
  • Price
  • Strategy

Valuing the target

  • As a standalone
  • Valuing synergies
  • Estimating the price premium

Financing the acquisition

  • Using shares or cash
  • EPS accretion and dilution: does it reflect value added?

Modelling acquisitions

  • Accounting issues
  • New developments
  • Calculating Goodwill
  • Proforma balance sheet
  • Merging income statements

Course summary and close

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product