Advanced Financial Analysis Series

Transcription

1 Advanced Financial Analysis Series CFA Singapore, in collaboration with SVCA, is proud to present our Advanced Financial Analysis Series held in conjunction with Wall St. Training. The Advanced Financial Analysis Series will provide practical, career-enhancing programs related to fundamental analysis, valuation and financial modeling. This series of hands-on workshops will consist of the following full-day programs: Advanced Financial Modeling Core Model 21 Oct 2015 Corporate Valuation Methodologies & Valuation Modeling 22 Oct 2015 M&A Deal Structuring & Merger Modeling Techniques 23 Oct 2015 Dates: Time: Venue: Instructor: 21 to 23 October 2015 (Wed to Fri) 9:00am to 5:00pm To be advise Mr. Hamilton Lin, CFA The goal of these programs is to improve and elevate the skill sets of the financial analyst and the investment professional. Heavy emphasis is placed on being as effective and efficient as possible with Excel. If you are interested in improving your financial modeling and valuation skills, or are in the midst of a career transition, these courses are for you! Wall St. Training ( provides professional financial training solutions to Wall Street through hands-on classroom training and customized corporate training programs for financial analysis which take a hands-on, interactive, practical, nontheoretical approach. The instructor, Wall St. Training s President and Founder, Hamilton Lin, CFA, has trained numerous major financial services firms including Bank of America/Merrill Lynch, Capital Group, CLSA, Credit Suisse, Deutsche Bank, Fidelity, GE Business Development & Private Equity, Goldman Sachs, Greenhill, ING, JPMorgan, Lazard, Morgan Stanley, Oppenheimer, TD Securities, TIAA-CREF, TPG, UOB, Wells Fargo, World Bank IFC and many others. Wall St. Training also provides financial modeling training courses to most of the largest CFA Institute societies around the world. As a participant in the CFA Institute Approved-Provider Program, CFA Singapore has determined that this event qualifies for 7 credit hours per module /day. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE diary.

2 Wednesday, October 21, 2015 Advanced Financial Modeling Core Model Prerequisite: Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals are required. Build a fully integrated financial statement projection model with income statement projections, a self-balancing balance sheet, an automated cash flow statement, and the balancing cash flow sweep/debt schedule. While knowledge of advanced accounting concepts is not required for this course, you should possess knowledge of basic accounting ratios and a basic understanding of how the major financial statements are inter-related. Emphasis is placed on the integration of the major financial statements and becoming experts in Excel. Incorporate different methodologies to forecasting the different types of assets on the balance sheet and compare and contrast with projecting liabilities. Learn how to balance a model utilizing the debt sweep and the revolver and not using any plugs. Appreciate the danger of and properly control for circular references. Avoid messy nested if statements!! You will leave the classroom with a fully constructed model that can be customized and applied to other companies. The final model is a fully scalable model that can be added upon. Learning Objectives: Build an integrated set of financials, including IS, BS & CF statements Learn how to balance a model utilizing debt sweep and no plugs Become super-efficient in Excel through intensive use of keyboard shortcuts Intensive focus on correct financial modeling approaches & best practices Learning Goals: 5-Year Financial Statement Projection Model: How do you project an IS from revenues and expenses down to Net Income? What are the different methodologies to forecasting the different types of assets on the balance sheet and how do they compare and contrast with projecting liabilities? How do you project the shareholders equity account? What is the importance of financial ratios in building the balance sheet projections? How do you approach building an integrated cash flow statement? How do you build each component of the cash flow statement and why is cash the last item to project? Integration and Balancing of Financial Model: Balance the model using the debt schedule and debt sweep logic the most important analysis in terms of balancing the model!! How does the cash actually flow through the model? Incorporate automatic debt payments and use cash generated to either pay down debt or build cash How does the revolver facility actually balance the model? Avoid messy nested if statements!! How does the BS and financial statements balance without the use of plugs? How are the financial statements integrated using the Interest schedule? What are circular references, why should they be avoided and how to get around circular references *FTS Eligible: This module is eligible for FTS claims subject to all eligibility criteria being met.

3 Thursday, October 22, 2015 Corporate Valuation Methodologies and Valuation Modeling Prerequisite: Intermediate proficiency using Excel and a solid grasp of basic accounting, finance and valuation fundamentals are required. How can you tell if a company is undervalued or overvalued? Is the current stock price the only measure of value? Why would one company command a higher or lower premium than its direct competitor? This course takes a practical, tangible, and non-theoretical approach to examining how corporations are valued and the major analytical tools that are used. Go beyond the academic theory of financial ratios and apply fundamental analysis and real-world methods of evaluating a company s intrinsic value. Gain insight into relative valuation methodologies (trading comps, deal comps) to fundamental valuation (discounted cash flow analysis, break-up / sum of the parts valuation). Coverage goes beyond the academic theory of financial ratios to the practical application of fundamental analysis, offering alternative, real-world methods of evaluating a company's intrinsic value. The second half of this course builds on the first half and is hands-on, interactive and Excelbased. Apply the concepts learned in the discussion portion and perform relative valuation modeling techniques in Excel. Build a quick and dirty trading comps analysis by inputting historical results and analyst projections for comparable companies and calculating current standalone market valuation multiples. Then, construct a detailed comprehensive reference range analysis that quantifies valuation methodologies. In doing so, crystallize and appreciate the capital structure and the relationship between total enterprise value, equity value and price per share. Finally, build and update dynamic football field to graphically summarize valuation metrics. These tools are useful for any financial professional interested in analyzing a company. Corporate Valuation and Corporate Finance Fundamentals: Enterprise Value (TEV): what is the correct treatment of minority interest and capital leases from a standalone valuation aspect vs. credit perspective vs. change of control What is the relevance of capital structure and leverage on a company s value? Why and how is corporate finance so critical to managing a firm s profitability? What exactly does a multiple tell us? Learn the correct way to use P/E and other multiples Why are P/E ratios misunderstood and what other ratios are more important? Utilize the correct numerator for multiples and calculating implied value Valuation Modeling: Construct discounted cash flow analysis by estimating unlevered free cash flow (FCFF) Discuss proxy methods for calculating working capital without a full blown BS projection Terminal Value estimation: what are the differences between the EBITDA multiple and perpetuity growth approaches and what are the implications on value? Learn subtle nuances including the proper CF figure in perpetuity growth models Calculate from TEV down to equity value and ultimately down to stock price per share Build a basic, quick and dirty, back-of-the-envelope trading comps analysis Input historical results and analyst projections for public comparable companies Construct a relative valuation analysis and calculate current standalone valuation multiples Build reference range that quantifies fundamental and relative valuation methodologies Crystallize and appreciate the capital structure relationship of TEV, equity value and price Build and update dynamic football field to graphically summarize valuation metrics Analyze, discuss, compare and contrast valuation results *FTS Eligible: This module is eligible for FTS claims subject to all eligibility criteria being met.

4 Friday, October 23, 2015 M&A Deal Structuring & Merger Modeling Techniques Prerequisite: Intermediate proficiency using Excel, a solid grasp of basic accounting fundamentals and an understanding of basic finance & financial modeling techniques are required. No previous insurance industry expertise required. Learn about mergers and acquisitions and how deals are structured. The first half of this course focuses on the mergers and acquisitions process and the basics of deal structures, presenting the main tools and analyses that M&A investment bankers and acquirers utilize. It covers the following modules: (i) in-depth analysis of the entire M&A process, including due diligence and legal issues; (ii) common structural issues including cash vs. stock, upfront payments vs. earn-outs, and stock vs. asset deals; (iii) crucial merger consequence analysis including detailed accretion/dilution and contribution analyses; and (iv) detailed analysis of transaction case studies to illustrate various deal structures and demonstrate detailed alternative earn-out structures and methodologies. The second half of this course builds on the first half and is hands-on, interactive, Excelbased and covers different ways to model out financial combinations. Different techniques are covered including the most basic and widely used back-of-the-envelope method, accretion / dilution and more robust analyses. Build dynamic models that account for different transaction structures, learn how to sensitize financial projections and the financial impact on a transaction and construct a pro forma merger model. Calculate estimated combined income statement for target and acquiror, key pro forma balance sheet items, cash flow for debt repayments and other relevant items in a merger and acquisition context. M&A Deal Structuring: Review of various deal considerations and deal structuring options (cash vs. stock) Common structural issues in a transaction (stock vs. asset) Buyer and seller preferences for various deal structures and rationale Tax implications of transactions based on structure & IFRS #3 goodwill amortization Merger consequence analysis including accretion / dilution & financial implications Analysis of breakeven PE for both 100% stock and 100% cash considerations Accretion / Dilution Modeling: Build dynamic merger consequence analysis (accretion / dilution) incorporating: Synergies switch, cash vs. stock sensitivity Amortization of goodwill switch (depending on purchase price allocation) Common structural issues: Stock vs asset deals Analysis of breakeven PE for both 100% stock and 100% cash considerations Calculate pre-tax and after-tax synergies / cushion required to breakeven Simple Merger Modeling: Construct a merger model, simple combination of IS for target and acquiror Project simple stand-alone Income Statement for both target and acquiror Analyze selected balance sheet figures and ratios and multiples Estimate target valuation and deal structure Calculate selected Pro Forma balance sheet items Combine target and acquiror s Income Statement and estimated synergies Calculate cash flow for debt repayments and cash balances Compute interest expense and interest income based on paydowns Calculate accretion / dilution and credit ratios *FTS Eligible: This module is eligible for FTS claims subject to all eligibility criteria being met.

5 Instructors Biography Mr. Hamilton Lin, CFA Hamilton Lin, CFA, is President of Wall St. Training ( a corporate training firm that teaches the fundamentals of financial analysis, modeling and valuation. Clients include prestigious firms including some of the largest investment banks, many boutique investment banks, buy-side asset managers, research firms and commercial banks, such as Bank of America/Merrill Lynch, Capital Group, Citigroup, CLSA, Credit Suisse, Deutsche Bank, Fidelity, GE Business Development & Private Equity, Greenhill, ING, JPMorgan, Lazard, Oppenheimer, TD Securities, TIAA-CREF, TPG, UOB, Wells Fargo, World Bank IFC and many others. Hamilton has a broad background in investment banking and mergers & acquisitions in diverse industries ranging from oil & gas to insurance to asset management and related sectors. He has worked on over six dozen deals and closed over three dozen deals, ranging from plain vanilla deals, to squeeze-outs, LBOs and distressed situations ranging in deal value from $10 million to over $6 billion. Prior to founding his firm, he worked at Goldman Sachs Investment Banking, where he standardized his group's best practices; Banc of America's M&A department, where he customized many of the firm's models; various boutique middle-market investment banks, executing private transactions; and Ryan Labs, an asset-liability asset management firm. Hamilton teaches globally, from all major cities in the USA including New York City, San Francisco, Chicago, Boston, to Toronto and Montreal in Canada, as well as Asia, including Hong Kong, Singapore, Shanghai, to Europe including London and most major financial hubs. Hamilton has previously taught at NYU Stern, as well as Baruch College and Hunter College in New York City. He graduated from NYU Stern in Finance and International Business, is a Chartered Financial Analyst and has taught all levels and all study sessions of the CFA exam. He also teaches dozens of financial modeling and valuation courses a year at the largest CFA Institute member societies, including: - New York Society of Securities Analysts - CFA Society Chicago - CFA Society Washington DC - Hong Kong Society of Financial Analysts - CFA Society Singapore - and many others **IMPORTANT - PLEASE NOTE** To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program. Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective. *FTS Eligible: This programme is approved for listing on the Financial Training Scheme (FTS) Programme Directory and is eligible for FTS claims subject to all eligibility criteria being met. Please note that in no way does this represent an endorsement of the quality of the training provider and programme. Participants are advised to assess the suitability of the programme and its relevance to participants business activities or job roles. The FTS is available to eligible entities, at a 50% funding level of programme fees subject to all eligibility criteria being met. FTS claims may only be made for programmes listed on the FTS Programme Directory with the specified validity period. Please refer to for more information.

6 Registration Form : Advance Financial Analysis Series Advanced reservation is required due to limited capacity. For participation, please complete the fields below and fax or back to CFA Singapore. Please indicate membership ID to enjoy members' rate. Course Fee Early Bird Fee Standard Fee *Price before 7% GST Membership type before 21 September 2015 after 21 September % off for 2 or more CFA Singapore S$ * per module S$ * per module Non Member S$ * per module S$ 1,180.00* per module modules / per candidate Company: Tel: Address: Contact person: Delegate 1) Name: Mr./Mrs./Ms./Dr./ Membership No. Tel: Mobile No.: Designation: Food preference: None / Halal / Vegetarian / others Module 1 : Core Model / Module 2 : Corporate Valuation / Module 3 : M&A Deal Structuring Delegate 1) Name: Mr./Mrs./Ms./Dr./ Membership No. Tel: Mobile No.: Designation: Food preference: None / Halal / Vegetarian / others Module 1 : Core Model / Module 2 : Corporate Valuation / Module 3 : M&A Deal Structuring Delegate 1) Name: Mr./Mrs./Ms./Dr./ Membership No. Tel: Mobile No.: Designation: Food preference: None / Halal / Vegetarian / others Module 1 : Core Model / Module 2 : Corporate Valuation / Module 3 : M&A Deal Structuring Payment Details By Check : Bank, Cheque number Amount : All cheques to be made payable to CFA Singapore c/o 10 Shenton Way #13-02 MAS Building, Singapore Please charge to my credit card (VISA/AMEX/MC): (Expiry : / 20 ) I, hereby authorize CFA Singapore to charge my credit card account for the amount of S$ Please invoice to : Terms and Conditions: Registration will only be confirmed upon receipt of registration form and full payment. If any registered delegate is unable to attend the workshop, a replacement is welcome at no extra cost. No refund will be made. CFA Singapore reserves the right to cancel or postpone the workshop due to unforeseen circumstances and also the right to reject any registration. I have read and accept the terms and conditions stated above. Signature/ Date Company Stamp