Corporate Analysis & Valuation School

5 days 18-22 Feb 2018, Dubai UAE £4,995.00 Download brochure Add to basket
5 days 30 Apr - 4 May 2018, London UK £4,995.00 + VAT* Download brochure Add to basket
5 days 8-12 Oct 2018, London UK £4,995.00 + VAT* Download brochure Add to basket
5 days 12-16 Nov 2018, Hong Kong Hong Kong $5,795.00 Download brochure Add to basket

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Overview

This course is made up of two separately bookable courses, book the whole programme and save £1750!

Days 1 & 2 - Financial Statement & Business Analysis

Days 3 to 5 - Corporate Valuation Techniques & Modelling

 

This course comprises three days of training in corporate valuation techniques, followed by an additional, optional two days of training that cover more advanced concepts. The three day foundation training course is designed to provide delegates


With an understanding of the following:

  • Financial analysis underlying corporate valuations
  • Valuation fundamentals
  • Multiple valuations
  • DCF valuations
  • Applying different valuation techniques using Excel


The subsequent two day training is designed to cover the following:

  • More advanced DCF techniques
  • The impact of capital structure on valuation
  • The impact of corporate finance transactions on valuation, including LBOs
  • Specific valuations eg. high growth, cyclical and distressed companies
  • Advanced financial analysis for corporate valuation

Who should attend

  • Investment bankers
  • Fund managers
  • Equity analysts
  • Equity traders
  • Equity sales
  • Corporate finance lawyers
  • Credit analysts
  • Strategists
  • Treasurers and finance directors
  • Compliance officers 

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.

London
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.

Hong Kong
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.

Dubai
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.

Venue

Dubai

Dubai Hotel

This programme takes place on a non-residential basis at a central Dubai 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, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Dubai has an incredible number of hotels. Courses held here are mainly held at the J.W. Marriot hotel, Sheraton Dubai Creek and Le Meridien all in central Dubai.
 
J.W. Marriott Hotel – Abu Baker Al Siddique Road, PO Box 16590, Dubai, U.A.E
Phone +971 4 607 7811; Fax +971 4 607 7011
www.marriott.com
 
At the JW Marriott Dubai you will enjoy luxury on your terms; impeccable service and elegant surroundings allow you to relax and focus on your own agenda. With 344 luxuriously appointed rooms and suites the J.W. Marriott provides an oasis of calm in a busy city while the award-winning restaurants have the recipe for satisfying a taste for international flavour.        
 
Sheraton Dubai Creek – Baniyas Street, PO Box 4250, Dubai, U.A.E
Phone +971 4 228 1111; Fax +971 4 221 3468
www.starwoodhotels.com
 
After undergoing a complete renovation, the Sheraton Dubai Creek Hotel& Towers reopened October 10th, 2002 with a fully refurbished interior and exterior. The 255 room hotel now offers more creek-view rooms, redesigned atrium lobby, outstanding food and beverage facilities, upgraded rooms with state-of-the-art data connectivity, and Dubai's newest conference facilities. 

Le Meridien – PO Box 10001, Airport Road, Dubai, U.A.E
Phone +971 4 282 4040; Fax +971 4 282 5540
www.lemeridien-dubai.com
 
Le Meridien Dubai is a five star deluxe hotel built on two floors and surrounded by 38 acres of landscaped gardens. The hotel is elegantly furnished with a french accent that incorporates the individual character and flair of the local culture. The hotel is minutes away from the commercial districts and shopping centres and a short distance from Dubai International Airport. Facilities include a choice of 15 restaurants and bars, 24-hour room and laundry service, two fully equipped business centres and a state-of-the-art Spa and fitness club.

 
 

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Hong Kong

4-5 Star Hotel in Hong Kong

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.

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

   
Introduction to corporate valuations

 
Valuation fundamentals

  • Drivers of valuation – ROIC, WACC, growth, size
  • The FCF perpetuity valuation formula; single and double period
  • The key value driver valuation formula
  • Economic profit and enterprise value added
  • ROIC vs. WACC – computation and drawbacks

Case studies: valuing companies using the above formulae

Financial analysis for valuation

  • Cleaning up the reported results to derive underlying performance
  • Calculating key financial ratios to assess a firm’s performance relative to its sector
  • Enterprise value versus equity value – what to include in net debt
  • Adjusting for operating leases and other off balance sheet liabilities

Valuations based on multiples

  • Multiple valuations based on revenues, EBIT, EBITDA(R), Net income/EPS, NAV
  • Overview of following ratios: PE, PEG, EV/EBITDA(R), PB, NAV
  • Choosing comparable firms
  • Dividend yield valuations
  • Reconciliation of multiple valuations to the key value driver formula
      
     

Day 2

 
Valuations based on multiples contd

  • Earnings versus cashflow
  • EPS dilution/enhancement
  • Case studies: valuing companies using multiple analysis

DCF valuations and financial modelling with Excel

  • Calculating OPAT and unlevered free cashflow
  • The CAPM; unlevered and levered betas, risk premia, kd, ke, tax shields and WACC
  • Explicit forecast period and terminal value
  • Assessing the terminal value (multiple or perpetuity method)
  • Case studies: modelling in Excel to produce DCF valuations

Part 1: The Fundamentals of Corporate Valuation & Modelling (Days 1 - 3)
 
Day 1

 
Introduction to corporate valuations

 
Valuation fundamentals

  • Drivers of valuation – ROIC, WACC, growth, size
  • The FCF perpetuity valuation formula; single and double period
  • The key value driver valuation formula
  • Economic profit and enterprise value added
  • ROIC vs. WACC – computation and drawbacks

Case studies: valuing companies using the above formulae

Financial analysis for valuation

  • Cleaning up the reported results to derive underlying performance
  • Calculating key financial ratios to assess a firm’s performance relative to its sector
  • Enterprise value versus equity value – what to include in net debt
  • Adjusting for operating leases and other off balance sheet liabilities

Valuations based on multiples

  • Multiple valuations based on revenues, EBIT, EBITDA(R), Net income/EPS, NAV
  • Overview of following ratios: PE, PEG, EV/EBITDA(R), PB, NAV
  • Choosing comparable firms
  • Dividend yield valuations
  • Reconciliation of multiple valuations to the key value driver formula
      
     

Day 2

 
Valuations based on multiples contd

  • Earnings versus cashflow
  • EPS dilution/enhancement
  • Case studies: valuing companies using multiple analysis

DCF valuations and financial modelling with Excel

  • Calculating OPAT and unlevered free cashflow
  • The CAPM; unlevered and levered betas, risk premia, kd, ke, tax shields and WACC
  • Explicit forecast period and terminal value
  • Assessing the terminal value (multiple or perpetuity method)
  • Case studies: modelling in Excel to produce DCF valuations

Day 3

 
DCF Valuations contd

  • Importance of final year forecasts – fading the forecasts
  • Comparing valuations using multiples vs. DCF
  • Advantages and drawbacks of each valuation method
  • Calculating NPV and IRRs

 

Part 2: Advanced Corporate Valuation Analysis & Methodology (Days 4 & 5)
 
Day 4

 
Advanced DCF methods

  • Changing annual WACC
  • 3 stage DCF
  • Adjusted Present Value (APV)
  • Compressed APV and recursive WACC
  • Calculating debt and equity values directly

Impact of corporate finance transactions on valuations

  • Friendly/hostile takeover
  • Merger
  • Demerger/spinoff/break-up
  • IPO
  • New equity offerings – calculating the TERP

The premium payable

  • Market conditions/sentiment/liquidity
  • Operational and financial synergies; cost savings
  • Shareholder concerns

The impact of capital structure on valuation

  • Increasing equity value through use of debt
  • Focus on shareholder value – dividend policy and share buybacks
  • Companies suited to leverage
  • Debt markets and credit ratings
  • Analysing debt capacity
     
     

Day 5

 
Leveraged Buyouts (LBOs)

  • Structuring LBOs
  • Short-cut method to see if an LBO may be financially viable
  • Typical covenants and financial forecasting

Specific valuations

  • High growth firms
  • Cyclical firms
  • Distressed firms; predicting default rates

Reversing into the terminal growth rate

Advanced financial analysis for corporate valuation

  • More advanced case studies to assess underlying performance
  • Overview of manor new IFRS accounting standards (IFRS 9, 15, 16)
  • Accounting tricks to enhance profitability

 
Course summary and close

Day 1

   
Introduction to corporate valuations

 
Valuation fundamentals

  • Drivers of valuation – ROIC, WACC, growth, size
  • The FCF perpetuity valuation formula; single and double period
  • The key value driver valuation formula
  • Economic profit and enterprise value added
  • ROIC vs. WACC – computation and drawbacks

Case studies: valuing companies using the above formulae

Financial analysis for valuation

  • Cleaning up the reported results to derive underlying performance
  • Calculating key financial ratios to assess a firm’s performance relative to its sector
  • Enterprise value versus equity value – what to include in net debt
  • Adjusting for operating leases and other off balance sheet liabilities

Valuations based on multiples

  • Multiple valuations based on revenues, EBIT, EBITDA(R), Net income/EPS, NAV
  • Overview of following ratios: PE, PEG, EV/EBITDA(R), PB, NAV
  • Choosing comparable firms
  • Dividend yield valuations
  • Reconciliation of multiple valuations to the key value driver formula
      
     

Day 2

 
Valuations based on multiples contd

  • Earnings versus cashflow
  • EPS dilution/enhancement
  • Case studies: valuing companies using multiple analysis

DCF valuations and financial modelling with Excel

  • Calculating OPAT and unlevered free cashflow
  • The CAPM; unlevered and levered betas, risk premia, kd, ke, tax shields and WACC
  • Explicit forecast period and terminal value
  • Assessing the terminal value (multiple or perpetuity method)
  • Case studies: modelling in Excel to produce DCF valuations

    Day 3

    Advanced Modelling

    Forecasting the income statement

    • Detailed revenue and earnings forecasts
    • Fixed vs variable costs: operating leverage – how to model in Excel
    • Calculating underlying EBITDA(R) and net income - adjusting earnings for exceptionals, non-recurring items, discontinued items, joint venture earnings, operating leases and other items
    • Hedging policies
    • Impact on earnings of new IFRSs – IFRS 9, IFRS 15, IFRS 16

    Taxation issues

    • Current tax vs deferred tax
    • Do deferred tax liabilities change the valuation?
    • Estimating the effective tax rate
    • Operating losses: carry-back and carry forward

    Non-current Assets

    • Understanding capital intensity
    • Maintenance vs expansionary capex
    • Understanding asset lives
    • Forecasting disposals – cashflow and gains or losses on disposal
    • Impairment of assets – how does this affect valuation?
    • 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 treatment
    • Impact of provisions on valuation


    Joint ventures, associates and investments

    • Accounting for joint ventures, associates and investments
    • Forecasting joint venture, associates and investment income

    Day 4

    Advanced modelling and Multiples Based valuation

    Equity financing

    • The importance or not of the book value of equity to valuation
    • The impact on valuation of share buy-backs, rights issues, convertible bond and preference share issues
    • Non-controlling interests - impact on equity financing; dividend leakage
    • Forecasting dividends

    Debt Financing

    • Linking cash flow and debt requirements
    • Different types of debt financing
    • Equity kickers
    • How do sovereign and corporate credit ratings affect valuation?
    • Advantages and disadvantages of increased debt funding

    Assessing liabilities

    • How to define gross debt, financial assets and net debt
    • Dealing with non-available financial assets
    • Dealing with different kinds of provisions and deferred revenues
    • Dealing with pension liabilities
    • Dealing with hybrid financial instruments and derivatives
    • Adjusting for stock based compensation and options
    • Adjusting for off balance sheet liabilities eg contingent liabilities, receivables funding, operating leases
    • Moving between equity value and enterprise value

    Advanced ratio analysis

    • Calculating and interpreting ratios for the income statement, balance sheet and cashflow statement
    • Which ratios for which sectors?
    • How to adjust valuations for different ratios

    Scenario analysis

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

    Equity multiples

    • What do equity ratios tell us?
    • Decomposing and interpreting P/Es: linking growth, cost of equity and RoE
    • Valuations using dividend yield
    • Valuations using net book value

    EV multiples

    • When to use EV multiples
    • Calculating EV: core vs non-core
    • Adjustments required for EV multiples

    Implied Valuation

    • The importance of qualitative factors (management, corporate governance, innovation, reputation, USPs etc)
    • Valuing a one business company
    • Valuing a conglomerate: sum of the parts valuation; valuing cross-holdings
    • Valuing cyclical and fast growing companies
    • Interpreting results and deriving an implied valuation for the target company

    Day 5

    DCF and Cost of Capital

    Cost of Capital

    • Which cost of capital and whose cost of capital?
    • The elusive equity risk premium
    • Examining beta
    • Calculating the cost of debt
    • WACC in emerging markets
    • Valuing negative cash flows
    • Time Varying Cost of Capital

    Forecasting unlevered FCF

    • Estimating normalised unlevered FCF
    • Pitfalls in calculating unlevered FCF
    • Forecasting of FCF for target company

    Terminal value

    • TV using the perpetuity method – what terminal growth rate?
    • TV using exit multiples
    • TV using liquidation value
    • Can some firms generate excess returns in the long run?
    • Running sensitivities
    • Review of final DCF model

    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

    Advanced DCF methods

    • 3 stage DCF
    • Adjusted DCF
    • Compressed DCF
    • Recursive WACC
    • Cash flow return on invested capital (CFROIC)

    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
    • Examination of the volatility and drivers of fast growth company valuations

     Scenarios and real options

    • Normal distributions and DCF
    • When the world is not normally distributed
    • Real options: myth or reality- the valuation

    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
    • Strategy

    Valuing the target

    • As a standalone
    • Valuing synergies
    • Estimating the price premium – the value of control and voting rights
    • Do public M&A deals create value for buying and selling shareholders?

    Financing the acquisition

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

     

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.
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