Corporate Finance Academy (Modular Course)

10 days 21 Aug - 1 Sep 2017, London UK £7,995.00 + VAT* Download brochure Add to basket

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Overview

This course is made up of two separately bookable modules:

This 2-part 10-day Corporate Finance Academy provides delegates with a thorough base in Corporate and Investment Banking and will equip them with a sound foundation of corporate finance knowledge, skills and expertise.

The London Corporate Finance Academy examines company finance and the economics of investment. It tackles issues such as optimal capital structure, taxation, methods of company and stock valuation and analysis of investment decisions.

Practical guidance will be provided on subjects

This course has been designed specifically for those wanting to launch their career in Corporate and Investment Banking as well as those looking to make a career change and want a refresher in Corporate Finance fundamentals. Suitable for a wide range of corporate finance staff.

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
Corporate Finance Academy Faculty

Week 1 – 21st – 25th August 2017
Part 1
Paul Richards
The Fundamentals of Accounting and Valuation


Paul Richards
Paul has taught Masters students at leading business schools in the UK (Cranfield and Cass Business Schools) for more than 15 years. He has also trained successfully for Euromoney for 5 years in more than 100 courses many of which have been customized courses delivered in-house for major banking institutions (eg Barclays, HSBC and other international banking institutions).

He has more than 20 years investment banking experience specialising in domestic and international corporate finance at UBS (Warburg), HSBC and Map Securities (part of Skandia Insurance and Mapfre, Spain). He was also the chief executive of the London merchant banking operation of Credit Industriel et Commercial, a major French banking group.
As a result of this experience, he has extensive firsthand experience of: accounting; valuation; corporate finance and treasury, mergers and acquisitions; IPOs; bond issues; secondary market issues; privatisation; debt syndications; equity valuation; investment analysis; security and derivative valuation; private equity; modelling; corporate governance; and compliance. His consulting and training clients have included a wide range of organisations such as Bowring, Industrial Development Company and Association of Corporate Treasurers and he has also been involved in expert witness work.

Currently, he is CFO at Affinity Real Estate Private Equity and he also undertakes training assignments for Euromoney. He is a non-executive director of Energy Invest Group, a resource financing company.

He won the 2004 Wincott Foundation Prize for his article "Lessons in shareholder value" on the boom and bust in new economy stocks, published in Professional Investor (the journal of the UK Society of Investment Professionals - the UK member society of the CFA Institute).

He has been a member of the FTSE Indices Committee, a member of the Accounting Standards Board working party on Operating and Financial Review and has 12 years’ experience as a non-executive director of a listed UK company.

He is a graduate of Cambridge University and London Business School. He is also a CFA charter holder, an Associate of the Chartered Institute of Bankers, a Member of the Association of Corporate Treasurers and a Fellow of UKSIP.






Week 2 – 28th August – 1st September 2017
Part 2
Andre Lanser
M&A Structuring, Leveraged Transactions (LBOs), IPOs and Restructuring in Distressed Debt


Andre is a consulting trainer as well as a corporate finance practitioner and he has delivered courses around the world in the areas of Credit, Corporate Finance, M&A, Debt Restructuring, IPOs, Valuation and Financial Modelling both for Corporates and Banks. Andre originally qualified as a Chartered Accountant, completing articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office.
His commercial experience includes restructuring and turning around a Steel Manufacturing operation, consulting to a Pharmaceutical company involved in medical devices for both Government and Private Hospitals and an in depth knowledge of the citrus industry, consulting to South African Airways and extensive work at Hanover Acceptances property company, Dorrington in London.

His career then spanned over 15 years in the Venture Capital and Private Equity arena, where he has gained a vast amount of experience in the corporate analysis and valuation field. He is a specialist in developing and training finance related courses, including corporate credit related topics, credit analysis and cash flow analysis with a special focus on the banking sector, derivatives, and financial modeling courses. His training experience spans a period of more than 15 years.

For DCGT Andre has successfully written/delivered courses for clients such as Arrow Pharmaceutical, Shell Oil, IBM, Komercni Banka, Societe Generale, Fortis Bank, Raiffeisen Group, Islamic Development Bank, Banco Santander, Standard Bank, Westpac, Commercial Bank of Qatar, Bank of Cyprus, ING, Bank of Cyprus, Rabobank, Eurohypo, Standard Chartered, Erste Bank and numerous others throughout the globe. Specific work in the Gulf Region: Islamic Development Bank, Saudi Airline and SABIC in Saudi Arabia. Financial reporting and IFRS training to banks in the Emirates, Qatar and Kuwait, which include Noor Islamic Bank, NBK and QNB. He is a trainer for the South African market for Continuing Professional Development (CPD) in IFRS.

Venue

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.

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.

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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

Part 1 – The Fundamentals of Accounting and Valuation
21st – 25th August 2017





 

Day 1: 21st August 2017
Major Accounting Statements


Session 1: Excel tools and commands 

  • Using Excel to model financial statements 
  • Basic Excel model building principles 
  • Key Excel commands 
  • Planning the layout of financial information 
  • Manipulating financial information

Case Study: Exercise in calculating the interest charge and loan repayments arising on bank debt


Session 2: The income statement 

  • Double entry as a principle 
  • Debits and credits 
  • Measuring revenues 
  • Computing the cost of goods sold 
  • Calculating depreciation 
  • Accrual accounting

Case Study: Preparing a profit and loss account


Session 3: The balance sheet 

  • Fixed versus current assets 
  • Measuring stock 
  • Working capital 
  • Share capital 
  • Borrowings 
  • Minority interests

Case Study: Preparing opening and closing balance sheets


Session 4: The cash flow statement 

  • Difference between cash and profit 
  • What consumes cash 
  • Deriving the cash flow statement from the income statement 
  • Changes in financing sources

Case Study: Preparing a cash flow statement


Day 2: 22nd August 2017
Assessing Financial Performance



Session 1: Managing working capital

  • Measuring the working capital investment
  • Key business risks in working capital 
  • Impact on the profit and loss 
  • Impact on balance sheets

Case Study: Measuring the cost of goods sold


Session 2: Assessing profitability and performance 

  • How efficient is the company? 
  • Margin analysis 
  • Return on capital employed 
  • The effect of gearing on performance ratios 
  • Measuring productivity 
  • Assessing dividends and dividend policy 
  • Dupont analysis

Case Study: Assessing the performance of a major retailer


Session 3: Assessing the balance sheet, key credit ratios 

  • Measuring financial health 
  • Measuring liquidity 
  • Measuring gearing 
  • Interest coverage ratios 
  • Managing working capital 
  • Fixed charge cover 
  • Debt cover 
  • Net worth

Case Study: Analysing the balance sheet for a major manufacturer


Session 4: Accounting scams 

  • The nature of accounting - science or alchemy 
  • Manipulating the balance sheet 
  • Window dressing 
  • Off-balance sheet items and their significance 
  • Revenue recognition and how to make sales 'take-off' 
  • Maximizing profit by minimizing costs and expenses 
  • Fraud - can it be detected?

Case Study: Discussion of an SEC report into a fraudulent accounting scheme




Day 3: 23rd August 2017
Valuation using cash flows


Session 1: Investment Appraisal Techniques 

  • Time value of money 
  • Appraising investment projects 
  • Alternative measures of value 
  • Payback period 
  • Discounted payback period 
  • NPV 
  • Discount factors 
  • Assumptions behind the process 
  • IRR 
  • Introductory sensitivity analysis 
  • Scenario analysis

 
Case Study: Comparing alternative investment opportunities and developing sensitivities of returns to variations in key project parameters


Session 2: The Dividend discount model (DDM) 

  • The Gordon growth model 
  • Key assumptions 
  • Key weaknesses 
  • Company approaches to dividend policies 
  • Forecasting dividends 
  • A two-stage dividend discount model 
  • A three-stage dividend discount model 
  • Using the DDM to value the whole equity market 
  • Relationship between retention/pay-out rate and dividend growth

Case study: Using the DDM for a valuation


Session 3: WACC/DCF based company valuation 

  • Capital structure 
  • Weighted average cost of capital (WACC) 
  • Cost of equity and debt 
  • Valuation using WACC 
  • Capital asset pricing model (CAPM) 
  • Estimating beta and the equity risk premium 
  • Computing a forward-looking risk premium 
  • Alternative models to CAPM 
  • Unquoted company valuation approach 
  • Size effect

 
Case Study: Calculating WACC, Calculating cost of equity, regearing beta


Session 4: WACC valuation 

  • Definition of free cash flow (FCF) 
  • Difference between free cash flow to firm (FCFF) and free cash flow to equity (FCFE) 
  • Preparing cash flows 
  • Estimating the cash flows in the terminal value period 
  • Growth rates in the terminal value period 
  • Growth versus cash flow

Case study: Calculating free cash flows for an international company



Day 4: 24th August 2017
Valuation using multiples


Session 1: The terminal value calculation 

  • The steady state as a benchmark 
  • Steady state assumptions 
  • Modelling the impact of an investment on cash flows 
  • Assessing the impact on key credit ratios 
  • Mandatory capex versus discretionary capex 
  • Corporate taxation 
  • Checking the assumption about capital structure

 
Case Study: WACC enterprise valuation


Session 2: Using WACC to value an acquisition target 

  • Developing a model of cash flows 
  • Estimating the terminal value 
  • The steady state scenario 
  • Sensitivity analysis of the terminal value 
  • Checking assumption integrity 
  • Preparing a sensitivity table to model growth rates and WACC values

Case Study: Valuation of an acquisition prospect using WACC


Session 3: Non-controlling interests (= minorities) 

  • The impact of a minority on the WACC process 
  • Including the minority cash flows 
  • Excluding the minority cash flows 
  • Using an enterprise multiple to second guess the terminal value 
  • Including an enterprise multiple in a sensitivity table 
  • Including non-operating assets in the valuation

Case study: Company valuation with large minority


Session 4: Price earnings ratios (PER) 

  • Definition of the PER 
  • Derivation of the PER 
  • Links to the DDM 
  • Key attributes of earnings 
  • Problems with PERs 
  • Impact of gearing 
  • Impact of fast short term growth 
  • Using the PEG ratio

Case study: valuation of an international company



Day 5: 25th August 2017
Valuation using multiples



Session 1: Enterprise multiples 

  • Multiples based on enterprise values 
  • Theory behind the ratios 
  • Key earnings related multiples: EV/EBIT(DA) 
  • Cash flow based multiples 
  • Selection of comparable companies 
  • Dealing with minorities 
  • Multi-activity companies

 
Case Study: IPO valuation


Session 2: Non-earnings based multiples 

  • Alternative ratios to use when earnings are unavailable 
  • Price/sales 
  • Price/book 
  • Price/proxy 
  • Industry or sector multiples 
  • Asset valuations: forced sale v. going concern 
  • Valuation of asset based companies 
  • Property companies 
  • Investment companies 
  • Resource company valuation 
  • Discounts and their explanations

 
Case study: airline valuation


Session 3: Real options approach to valuation 

  • Projects as options 
  • The valuation of flexibility 
  • Introduction to option valuation methodology 
  • Payoff charts 
  • Put and call option parity 
  • The binomial model 
  • Black and Scholes (provided in a spread sheet)

Case study: Volatility measurement


Session 4: The option to defer, to expand, to delay 

  • The value and cost of delay 
  • Impact of the time horizon: limited exploitation license life 
  • Using option valuation methodology to value the delay option 
  • Value in uneconomic discoveries as an option 
  • Using the option valuation methodology for mines 
  • Valuing the option to walk away 
  • Using existing market values to obtain valuation benchmarks 
  • Using a combined approach to valuing producing assets and discoveries

Case study: Valuing mineral reserves in the ground before extraction



Part 2 – M&A Structuring, Leveraged Transactions (LBOs), IPOs and Restructuring in Distressed Debt
28st August – 1st September 2017



Session 1: Structure and synergies 

  • Strategic decision making: do companies need to grow? 
  • Acquisition versus organic growth 
  • Types of transaction 
  • Types of synergies 
  • Legal risks in acquisitions 
  • Mitigating risk via due diligence 
  • Legal protections 
  • Credit risk in the event of a problem 
  • Impact of the nature of the transaction (friendly/hostile) on due diligence

 

Case study: Strategic choices for growth faced by an international brewer

Session 2: Synergies and due diligence 

  • Identifying the acquisition benefits 
  • Quantifying the benefits 
  • Types of synergy 
  • Due diligence: financial, legal and commercial 
  • Deal breakers 
  • Adjusting the price 
  • Managing acquisition risk

Case studies: BA/Iberia

Session 3: Corporate restructuring events and implications

  • Acquisitions 
  • Joint ventures (JV’s) 
  • Spin-offs 
  • Split-offs 
  • Carve-outs 
  • Targeted stock 
  • Contingent value rights

 
Case study: Carphone Warehouse demerger

Session 4: Disposals – the controlled auction 

  • Bilateral negotiation 
  • Data room 
  • Vendor due diligence 
  • Sale and purchase agreement

 
Case study: EMI; SSL

Acquisition Analysis

Session 5: Public M&A transactions 

  • Takeover codes, practices 
  • Documentation 
  • Impact of friendly v. hostile on price, due diligence, financing 
  • Strategies and tactics – implications for defence 
  • The war of words and the war of numbers

Case study: contested takeover

Session 6: Pro forma acquisition analysis 

  • Pro forma financials 
  • Accretion and dilution 
  • Breakeven PER of cash/debt 
  • Impact of capital structure 
  • Considering all debt and all equity financing 
  • Including synergies in the analysis

Case study: M&A presentation by Rona

Session 7: Modelling the acquisition 

  • Building the model 
  • Income statements 
  • Balance sheets and cash flow statements 
  • Capital structure assumptions 
  • Financing options 
  • Examining the impact on credit ratios 
  • Dividend policy


Case study: model building to examine the impact of the acquisition, its synergies and its financing on the financial statements of the buyer

Session 8: Financing the acquisition 

  • Capital structure flexibility 
  • Bridge financing 
  • Issuing equity 
  • Vendor placing 
  • Deferred consideration: Earn-outs 
  • CVRs

Case study: Pharma company contingent payments


Section 2 - Highly Leveraged Transactions: LBOs
Objectives


By the end of this section, participants will be able to: 

  • Build a leveraged buyout model with a valuation model and maximum debt capacity 
  • Analyse the debt and equity sources of finance that drive the LBO model 
  • Determine the key accounting and financing scenarios which drive the sensitivities 
  • Build a sensitivity model including IRR in order to evaluate investors returns

Session 9: Leveraged buy-out types 

  • Deal types: LBO, MBO, MBI, BIMBO, SBO, LBU, P2P, etc. 
  • Traditional financing structures 
  • Objectives of senior lenders 
  • Objectives of mezzanine lenders 
  • Objectives of equity providers 
  • Historical rates of returns 
  • Carried interest


Case study: Restructuring Toys R Us, Legrand

Session 10: Structuring the debt 

  • Example capital structures 
  • Establishing the amount of debt that can be used 
  • Assessing the type of debt that can be used 
  • Disadvantages of the high level of gearing 
  • Key credit ratios

Case study: Materis, international secondary and tertiary buyout


Session 11: Building the LBO model 

  • Secondary buy-out case 
  • Senior and junior mezzanine 
  • Key ratios determining the financing structure 
  • Preparing projections for the appraisal of an LBO and mezzanine candidate 
  • Model the equity returns 
  • Model the mezzanine warrant participation 
  • Setting the covenant structure 
  • Internal approvals 
  • Facility letters

Case study: Building a model of the cash flows and capital structure to test syndication feasibility


Session 12: Satisfying the lenders 

  • Acquisition vehicle structure 
  • Contractual subordination 
  • Structural subordination 
  • Achieving debt pushdown 
  • Achieving tax relief 
  • Opco/propco/holdco


Case study: Holdco PIK, Cognis Gmbh

Section 3 - IPO Marketing and Underwriting
Objectives


By the end of this course, participants will be able to: 

  • Obtain an appreciation of the elements that contribute to a successful flotation 
  • Develop a sound knowledge of the methods of marketing IPOs 
  • How to select the appropriate underwriting technique 
  • Be able to discuss IPOs with greater confidence

Session 13: Preparation 

  • Why float? 
  • Exit strategies for existing shareholders 
  • Strategic considerations: float or sell? 
  • The objective of the due diligence exercise 
  • Essential corporate restructuring steps pre-IPO 
  • Senior versus junior market 
  • Lock-up agreements 
  • American depositary receipts (ADRs and Global DRs) 
  • Timetable

Case study: US IPO failure

Session 14: Marketing the IPO 

  • Book-building/placing as an issue method 
  • Offers for sale as an issue method 
  • The role of the analyst 
  • Roadshows and company visits 
  • Preparing the management

Case study: Roadshow presentation for major IPO

Session 15: IPO Underwriting 

  • Hard and soft underwriting 
  • The financial risk in underwriting 
  • Underwriting as an option 
  • Competition issues in fees charged 
  • Underwriting in public offers

Case study: The overallotment option/Greenshoe

Session 16: Rights issues post IPO 

  • Pre-emption rights 
  • Theoretical ex-rights price (TERP) 
  • Deeply discounted issues 
  • Block trades, accelerated bookbuilding 
  • Other abusive practices covered in the Global Settlement

 
Case study: Allianz rights issue

Section 4 - Restructuring in Financial Distress
Objectives

  • By the end of this course, participants will be able to: 
  • Enhance their analytical skills in restructuring and corporate recovery situations 
  • Develop their awareness of the various techniques available 
  • Identify some of the problems and pitfalls to avoid 
  • Acquire a powerful guide to corporate recovery skills and crisis management



Session 17: The road to financial distress 

  • Symptoms of distress 
  • Causes of distress 
  • The cycle of distress 
  • The role of covenants as early warning devices 
  • The rating agencies and missed problems 
  • Distressed security prices 
  • Systemic distress or ad hoc distress 
  • Speed of recognition versus management denial

Case Study: Americredit and the US car industry

Session 18: Business plan failures 

  • Critical assumption failure causing distress 
  • Technological failure 
  • Revenue assumption failure 
  • Project financing failures

Case Study: Iridium, New Star

Session 19: Pre-distress restructuring actions 

  • Management led business restructuring ahead of distress 

Cutting costs to meet a lower level of business activity 

  • Financial restructuring ahead of projected or possible distress 
  • The distressed debt investor’s approach to selecting distress candidates

Case study: Restructuring Walmart with distressed debt investors

Session 20: Restructuring options 

  • What business levels can be projected in the future 
  • Can the projections support the current debt burden? 
  • Does the company need more cash to execute the new plan? 
  • Legal options available 
  • Approaches to insolvency (INSOL Principles) 
  • Workouts 
  • Prepackaged deals 
  • Court led/judicial restructurings 
  • Comparing international approaches


Case Study: Restructuring Drax

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