Advanced Financial Modelling Series

Transcription

1 Advanced Financial Modelling 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 Modelling Core Model 23 March 2015 REIT Financial Modeling 24 March 2015 VC Investing: Private Company Valuation & Participating 25 March 2015 Preferred Securities Dates: 23 to 25 March 2015 Timing: 9:00am to 5:00pm daily Venue: TBC Course Instructor: 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, non-theoretical 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 Monday, March 23, 2015 Advanced Financial Modelling 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 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.

3 Tuesday, March 24, 2015 REIT Financial Modelling 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. Build an integrated, scalable, REIT financial model including detailed build-up by internal growth, acquisitions, dispositions, and new development. Integrate Income Statement projections with a condensed, self-balancing balance sheet, an automated cash flow statement and a simplified debt sweep schedule. Customize revenue and cost drivers based on a REIT as opposed to a generic manufacturing or retail model. Quantify the key assumptions and drivers of growth on the Cash Flow Statement including the need for a REIT to constantly issue equity to replenish its capital structure. We start with a quick summary of the REIT industry and various drivers of growth per real estate sector and then plow into the financial analysis and financial model. REITs, REIT Terminology and REIT Market: Overview of REITs, terminology and legal structure (e.g., UPREIT) REIT profitability and performance metrics including FFO, AFFO, straight-lining Acquisitions & New Developments: Model out future projected acquisition volume based on historical trends Model out future projected development starts and completions Estimate revenue, expenses, margins and NOI Calculate associated estimated depreciation expense Calculate net change to real estate assets Income Statement: Consolidate acquisitions, dispositions & development figures into revenue drivers Distinguish between existing and new rental revenue and growth rate logic Understand the importance of applying assumed cap rates to new volume Calculate revenue and NOI including rental revenue and real estate expenses Calculate total expenses down to EBITDA, Net Income, FFO, NOI and EPS Balance Sheet, Cash Flow Statement and Sweep: Project real estate assets and remaining asset, liability and equity balances Understand the key drivers of growth for Balance Sheet line items Calculate CFO (including working capital), CFI and CFF items specific to REITs Comprehend how to calculate and incorporate maintenance CapEx into model Constructed detailed build-up of dividends, shares outstanding and share issuances Build simplified cash flow sweep to capture any shortfalls / build-up in cash to balance the entire model and the use of debt as the ultimate balancer Incorporate interest calculation to fully integrate the model Note: Due to time limitations, we will not have time to build a full-blown debt sweep nor to discuss the concept of circular references and average interest calculations. Therefore, please take our previous day class, Advanced Financial Modeling Core Model which will provide comprehensive financial modeling best practices. 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.

4 Wednesday, March 25, 2015 VC Investing: Private Company Valuation & Participating Preferred Securities In the first part of this course, we discuss the complex nuances associated with analyzing and valuing emerging markets and private companies. We dive deep into the details and concepts deeply imbedded with valuation of large publicly traded and listed companies and take it to next level by applying it to companies and regions with very sparse publicly available data. Learn nuances of adjusting for DCF valuation, WACC analysis when no data exists, how to select and adjust peer comparables when no good comp exists. While there is certainly no magic bullet to the tough questions and lack of information, there are techniques and best practices to get us as close as possible. Learning objectives include: fundamental & DCF valuation nuances (adjustments to Gordon growth); WACC and cost of component capital nuances (adjustments to cost of debt and equity and beta); review of basic valuation methodologies, focusing on relative valuation multiples and ratios and tacking on private company discounts; emerging markets case study and real-life valuation nuances when data simply doesn t exist. The second part of this course involves modeling out early stage investment securities waterfalls. When investing in earlier stage companies, whether start-up, growth or mezzanine stage investing, there is a fine balance between incentivizing the newest round of investors injecting capital and providing enough returns for earlier round investors, while still motivating management to strive for mutual alignment of economic interests. Investors desire downside protection while craving equity upside. Thus, the participating preference securities evolved from a blend of common stock with equity upside & voting rights to debt with accruing interest and priority of liquidation. In this course, learn how to structure, and model out such hybrid securities commonly used in VC and earlier stage investing. Specifically, in our liquidation waterfall modeling, we will model out: Modeling Preferred Equity and Multiple Class Share Positions: structuring returns for each equity participant and class/series of investors Equity Assumptions: capitalization tables, pre-money vs. post-money calculations Liquidation Preference: minimum return threshold based on pre-determined multiple and Dividends: Cash pay vs PIK; compounding vs simple; cumulative vs. non-cumulative Participation Rights: investors shall participate on equity upside based on fully diluted preference protection Participation Caps: the crux of the analysis focuses on the capped upside of the investor and recomplicated and that s why it s called a waterfall! Conversion: complicate the analysis by adding in a conversion option for all investors to furth final valuation/liquidation amount Management Options & Warrants: incorporate management options in allocation of final management proceeds based on cashless converts Please note that this is a financial modeling class, not a legal class. **IMPORTANT - PLEASE NOTE FOR ALL PROGRAMS** 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

5 Instructors Biography 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 all of the financial modeling and valuation courses (dozens of classes a year) at the following CFA Institute member societies: - New York Society of Securities Analysts - San Francisco CFA Society - Chicago CFA Society - Boston Security Analysts Society - Toronto CFA Society - Stamford CFA Society - The Hong Kong Society of Financial Analysts - Singapore CFA Society - CFA-China: Shanghai & Beijing Please refer to next page for Registration Form

6 Registration Form Advanced reservation is required due to limited capacity For participation, please complete the fields below and back to CFA Singapore Please indicate membership ID to enjoy members' rate Refund and Cancellation Policy: Refunds and cancelation received on the following: o All Cancellation requests have to be made in writing and a processing fee of S$50.00 will apply o Requests made 4 weeks before the workshop date, 10% of the original workshop fee will be charged o Requests made 2 weeks before the workshop date, 50% of the original workshop fee will be charged o Requests made 1 week before the workshop date will not receive any refund of the original workshop fee *Members/Guests without registration will NOT be admitted; Admission/Seats are subject to availability Name: Mr./Mrs./Ms./Dr./ Designation: CFA/ SVCA Membership No.: Tel: Mobile No.: Company: Address: Postal Code: Food Preferences: None Halal Vegetarian Others (please specify): Payment Details I would like to attend: (Please mark a tick () in the relevant box) Programmes Advanced Financial Modelling Core Model (23 March 2015) REIT Financial Modelling (24 March 2015) VC Investing: Private Company Valuation & Participating Securities (25 March 2015) Please Tick 1 Day Courses Fees Per Module/Per Day (SGD) Membership Type Early Bird Special (By 22 Feb2015) Standard Fees (after 22 Feb 2015) CFA Singapore & SVCA Members S$700 S$900 Non Members S$900 S$1,100 (Bank, *Cheque No.): Amt Due: SGD$ *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 I, hereby authorize CFA Singapore to charge my credit card account for the amount $ SGD Credit Card (VISA/AMEX/MC): (Expiry: /20 ) Signature/ Date (a member society of CFA Institute) 10 Shenton Way, MAS Building, #13-02, Singapore Phone: Fax: eventmanagement@cfasingapore.org