Course Description
A Powerful Hands-On Workshop for Financial Professionals -- Combining your financial knowledge and the power of Excel® to create dependable financial models that work for you.In this course, quickly learn to master:
- Design Principles for building a solid financial model
- Using Excel’s modeling and financial tools to their fullest potential
- Combining finance and accounting principles and spreadsheets into a model
- Understanding the theory, logic and components of a great financial model
- The essentials of Excel for best modeling techniques
- Incorporating critical financial information for accurate results
- Combining valuation methodologies into your model building
- Logical techniques and layout skills for the financial model
- Accounting principles inherent in reliable modeling
- Creating a “presentable” and understandable model for your firm
Master the Art and Science of Building the Financial Model: Reliable, Dependable, Flexible, Robust and Complete!
With today’s ever changing and volatile financial landscape – more than ever, the financial and investment industries need the comfort of dependable and accurate forecasting when making critical business decisions. Often, investment professionals have a solid financial background, some Excel skills but limited modeling skills, having learned “as they go” - using modeling techniques and forecasting measures that are less than reliable.
This dynamic two-day Financial Modeling Boot Camp will help to put all of your knowledge to use, allowing you to combine your financial background with improved Microsoft Excel® modeling skills and modeling techniques to give you the tools you need to create workable, flexible and reliable Financial Models. You and your staff will learn to build the solid foundation necessary to create valuations that you can rely upon and skills that will work over time in all aspects of your business.
Combining Financial Knowledge, Excel Skills and Model Building Technique
In two action-packed days you’ll gain the skills, knowledge and “know how” to create solid and robust financial models. You’ll examine the components of a good model, review accounting principles incorporated in a model, learn what information you’ll need to create accurate results, and how Excel can be used to your advantage to develop a great valuation tool.
Substitution & Cancellation Policy:
You may cancel or reschedule up to 21 days prior to the start date of the class at no penalty. For any cancellation or reschedule requests within 21 days, the full course tuition is still due and not eligible for refund. Any paid tuition will be credited towards a future class and must be used within 12 months.
*Partner delivered courses may be subject to different cancellation terms
Agenda
Step-by-Step – Your Modeling Skills Come Together With Ease
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
- Learn to logically arrange the parts of your model and understand the design principles behind good modeling
- Learn how to create macros for your repetitive modeling functions and how to record them
- Understand how to use Excel Macros to their fullest potential in your model building to save you time and frustration
- Gain the comprehensive skills sets you need to become a capable Financial Modeler
- Know what toolbox functions you’ll need and which to customize to suit your needs
- Understand scenario testing and other testing techniques you will need before you go “live” with any model
- Know how to accurately record historical and projected operating assumptions into your model
- Know how to confidently combine all valuation methodologies into your financial modeling process
- Easily link your income statement, balance sheet and statement of cash flows
- Know how to quickly detect errors in formulas and how to correct them without adverse effects
- Incorporate the best designs for usable spreadsheets, using input cells, cell names and financial functions
- Understand how to accurately import all of your financial data into your model
- Create a flexible and robust financial model that can easily incorporate your own needs, changes and modifications over time
- Become a pro at sensitivity analysis using the data tools available to you
- Incorporate graphics and logical layout to create a “Presentable” model to professionally communicate results to others
- Know how to link all of your worksheets for interactive modeling and valuation
- Master the skills to create a model that will work for all types of valuations in all types of business and industry
- Learn to rely on the Excel financial functions and tools that are already available to you
- Learn from a renowned course developer and course instructor with years of successful investment experience and solid teaching abilities
- Quickly get up to speed as you "learn by doing” in this hands-on class — enjoy a fast-paced, boot camp approach to learning
Program Outline
This is an An Interactive Workshop - Bring a Laptop In this interactive workshop, you will be supplied an instructor-developed modeling template. From the first brick to a total enterprise model, you'll develop a strong grasp of model building that is difficult to obtain from a book! Explore structure, algorithms, data tables, graphs and other critical components — hands-on, in class! You'll understand the interaction of model components and you'll have the ability to confidently perform analytical work using your model. What's more, you'll take this skill back to the office to share with your co-workers and staff.
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.