Financial Modeling Boot Camp Training Class

I. Course Overview and Introductions
In this important course introduction, we'll discuss why financial modeling is important, the strategies you need to incorporate to create a solid financial model, how you need to "think" and what tools you will need to construct a complete working model.
    A. Instructor/Student Introductions
        1. Determining skill levels
        2. Student's goals
        3. Course goals and direction
    B. What is and why Financial Modeling
        1. Linked/Integrated Financial Statements
        2. Historical/Future Projections
        3. Operating and Financial Assumptions
    C. The Art and Science of Accurate Financial Modeling
        1. Model like an Analyst, think like a Managing Director
        2. Financial Market Awareness
        3. Clients Needs
      4. Strategic Analysis
        5. "Outside the box" Due Diligence
      6. Original/Thoughtful Research
    D. Relevant Financial Websites and Support Groups
        1. Yahoo Finance
        2. SmartMoney Marketmap
        3. Google Alerts
        4. Relevant Industry Websites
        5. Bookmark File

II. A Thorough Review of Accounting Principles Implied in Financial Modeling
A financial model is an interactive representation of financial statements, interwoven into a seamless, interactive valuation tool, providing you an automated method for calculating accurate assumptions. In this segment, we'll review all of the key financial concepts and accounting principles that you need to understand, what each represents and how each piece interacts and affects your modeling techniques and valuations.
    A. Balance Sheet Components
    B. Income Statement Components Review
    C. Statement of Cash Flows
    D. Ratio Calculation and Analysis
    E. EBITDA vs. Earnings vs. Cash Flow
    F. Market Capitalization vs. Book Value
    G. Key SEC Filings and Source Documents
    H. Importance of Footnotes

III. Excel Functions/Skills and Financial Modeling
In this hands-on section, working with the instructor, you'll cover key Excel functions, understanding what modeling tools are available in Excel, short cuts you can use, customizations that you'll want to make. You'll end by knowing the capabilities of Excel and how to navigate and work comfortably.
    A. Color Coding - Making Spreadsheets Understandable
    B. Using Cumulative Checks and SUM Bars to Avoid Errors
    C. Yes/No Triggers for Alternate Transaction Scenarios
    D. Working with Circular References
    E. Catching Errors in Formulas
    F. Using MIN and MAX for Optional Debt Repayment Formulas
    G. Using Custom Number Formats
    H. Formatting Numeric Values as Text
    I. Mixing Links and Text via ???&' Function
    J. Converting Numeric Values using the TEXT Function
    K. Tracking Precedents/Dependents in Native Excel
    L. Jumping to Newly Defining Names
    M. Creating Data Tables to Automate Repetitive Calculations
    N. Using OFFSET to Run Scenario Analyses

IV. Building the Financial Model
It's time to incorporate your skills and financial knowledge. In this segment, you'll create in class a working model. With the instructor, you'll incorporate your financial statements, find the "bugs", problem solve, enhance your model, use polishing techniques and ultimately create a presentable and reliable model.
    A. Setting up and Building the Integrated Financial Model from Scratch
        1. Linking of Income Statement, Balance Sheet, Statement of Cash Flows
    B. Establishing the flow of a Financial Model
        1. Historical & Projected Operating Assumptions
            a. Computing Revenue Growth
            b. Calculating Cost of Goods Sold
            c. Depreciation of Capital Expenditures
            d. Amortization of Intangibles and Financial Costs
            e. Capital Expenditures of Long Term Assets
        2. Analysis of Working Capital Assumptions
            a. Accounts Receivable % of sales, As A Measure of Collection Prowess
            b. Days Receivable, And Its Relation to Sales Growth
            c. Inventory % of COGS, Measuring Inventory Obsolescence
            d. Inventory Turns, Measuring Management Efficiency
            e. Calculating Prepaid Expenses % of COGS
            f. Accounts Payable % of COGS, and Its Relation to Financial Float
            g. Calculating Accrued Expenses % of COGS
        3. Latest Balance Sheet
        4. Income Statement (Historical and Projected without Average Interest)
        5. Forecasting the Balance Sheet - Up to Debt & Cash
        6. Creating a Cash Flow Statement
        7. Understanding and Creating A Debt Schedule - Sources and Uses of Funds
        8. Completed Forecast, Balance Sheet, Income Statement, Cash Flow Statement
    C. Valuation
        1. Discounted Cash Flow (DCF) Valuation Using Excel's Table Function to Calculate Valuation Ranges
        2. Using Comparable Company Analysis as a Method of Relative Evaluation
        3. Using Precedent Transactions as a Basis for Takeover Values
        4. Calculating Enterprise Value For Valuing Firms According to the Indirect Method
        5. Computing Free Cash Flow for Use in Enterprise Valuation
        6. Using the Capital Asset Pricing Model to Estimate Equity Discount Rates
        7. Calculating Weighted Average Cost of Capital To Properly Estimate Enterprise Value Discount Rates
        8. Using Implied Multiple Analysis To Develop Valuation Intuition
    D. Advanced Modeling/Valuation Techniques
      1. Using Scenario Analysis To Model Best, Worst and Standard Business Cases
        2. Using Operating Buildup to Create Detailed Revenue and Expense Projections
        3. Average Interest - the only valid circular reference in a Financial Model
        4. Sensitivity Analysis to Determine Model Robustness
    E. Checks and Balances to Eliminate Errors and "Rookie" Mistakes
    F. Creating a Summary/Creating Cover Page
    G. Recap of Websites and Support Groups

Engaging Case Studies and Group Exercises

Not only intense, this class can also be fun. You'll enjoy working with other members of the group on in-class exercises and participate in discussions of some interesting case studies. You will enhance your working knowledge of modeling by enjoying instructor-lead group exercises and discussions of "real-world" examples and business situations that help enforce what you're covering and cement your understanding of the various course topics.

This rigorous, hands-on class will cover the essentials step-by-step, and you will quickly discover how to put the power of what you know into building a dynamic, robust financial model. Confidently, you'll know how to:

• Logically plan, design and layout a model that works in your environment
• Use Excel to it's fullest potential to help in the building process
• Build a Financial Model, Integrating Financial Statements
• Create Financial Forecasts Based On Your Model
• Analyze And Value a Company Or Project
• Test and retest your results for robustness and accuracy
• Confidently present your results to management and make informed decisions

Immediately Useful Benefits of Attending This Two-day Boot Camp

1. Learn to logically arrange the parts of your model and understand the design principles behind good modeling
2. Learn how to create macros for your repetitive modeling functions and how to record them
3. Understand how to use Excel Macros to their fullest potential in your model building to save you time and frustration
4. Gain the comprehensive skills sets you need to become a capable Financial Modeler
5. Know what toolbox functions you'll need and which to customize to suit your needs
6. Understand scenario testing and other testing techniques you will need before you go "live" with any model
7. Know how to accurately record historical and projected operating assumptions into your model
8. Know how to confidently combine all valuation methodologies into your financial modeling process
9. Easily link your income statement, balance sheet and statement of cash flows
10. Know how to quickly detect errors in formulas and how to correct them without adverse effects
11. Incorporate the best designs for usable spreadsheets, using input cells, cell names and financial functions
12. Understand how to accurately import all of your financial data into your model
13. Create a flexible and robust financial model that can easily incorporate your own needs, changes and modifications over time
14. Become a pro at sensitivity analysis using the data tools available to you
15. Incorporate graphics and logical layout to create a "Presentable" model to professionally communicate results to others
16. Know how to link all of your worksheets for interactive modeling and valuation
17. Master the skills to create a model that will work for all types of valuations in all types of business and industry
18. Learn to rely on the Excel financial functions and tools that are already available to you
19. Learn from a renowned course developer and course instructor with years of successful investment experience and solid teaching abilities
20. Quickly get up to speed as you "learn by doing" in this hands-on class - enjoy a fast-paced, boot camp approach to learning