This program provides participants the core skills required for valuation and modeling in a sophisticated financial institution. The program focuses on middle-market clients ($50 million – $1 billion in annual sales) and is designed to ensure participants are entirely familiar with (a) forecasting and modeling of a business’s future financial performance, (b) establishing a market oriented valuation for the business and determining the optimal capital structure for that business. Participants with principal responsibility for financial forecasting and valuation will fully conversant with financial models while learning to appreciate the capital structure implications of their analysis; and, corporate bankers responsible for working with clients will understand in detail the financials that underpin their client discussions and relationships.

TARGET AUDIENCE

• Financial and credit analysts, associates and shared services professionals with 0-3 years exposure to capital markets products and services. This program is ideal for new hires and recent graduates with little practical exposure to the capital markets.

OBJECTIVES

• Learn how to plan and structure simple and complex financial models
• Determine what the model’s end-user requires in terms of model format and structure
• Assess the type, level, and granularity of information required for assumptions, back sheets, projection periods, etc
• Justify why and how information is included or excluded from the financial model
• Explain key performance indicators and risks of a company, given its competitive strategy
• Interpret all the key elements and inter-relationships of a company’s statements
• Articulate how financial statements can be used to assess key success factors and whether business risks are being managed appropriately by management
• Use ratio analysis to identify areas of financial performance
• Accurately assess financial results relative to competitors
• Be fully conversant in forecasting all company financial statements
• Understand and be able to apply and justify major valuation methodologies
• Develop comprehensive skills in financial modeling using Excel
• Develop and maintain financial models

PREREQUISITES REQUIRED

Participants are assumed to be proficient in the use of a financial calculator, such as TI Business Analyst, the HP-12C or HP-19. Participants are also assumed to be proficient in the use of spreadsheet software such as Microsoft Excel.

The program requires access to a PC for participants (either individually or in teams of 2-3) so that each individual can have hands-on experience in spreadsheet development tasks, as well as solving the program’s many exercises and cases. Each program’s introduction and conclusion establishes clear pre-set objectives, and is adjusted if needed to incorporate additional needs of participants.

PRE-READING

Individuals will receive a briefing package for one of two “Comprehensive Case Studies” which will be completed in teams during the workshop. The briefing package will include detailed company financial information as well as an overview and setting for the case. Participants are expected to have a full working knowledge of the company’s business and financial setting by the time the workshop begins. It is imperative that this background information be reviewed prior to the session. Participants should arrive at the session prepared to discuss the specific needs of their selected client and to assist in identifying the needs of the other selected clients.