Public Courses Practical financial skills to get you desk ready Bengaluru Hong Kong I Mumbai Singapore I Sydney
Contents Why AMT Training? 3 About us 3 Public courses 4 Financial Modeling Fundamentals and Three Statement Modeling 8 Financial Modeling, Forecasting, Integrity and Error Checking 10 Financial Modeling 12 Building a Financial Model from Scratch 14 Valuation, Trading Comparables and DCF 16 Valuation DCF, Trading Comparables and LBO 18 Credit Risk 20 M&A Modeling 24 Divestiture and M&A Modeling Issues 26 LBO Modeling 28 Banking Masterclass 30 Why should you attend? 34 What you will receive on the course 35 What to bring 35 PUBLIC COURSES / 2
Why AMT Training? over 70,000* finance professionals globally have trained with us our courses are delivered by past and present bankers for future bankers we use practical application and real-life examples our training is fast paced, information intensive and hands on we make number crunching, fun, lively and relevant to your work *Figures taken from 2012 to 2017 About us For over 20 years we have been equipping analysts and associates with core skills for banking and finance. Our clients include the top ten investment banks and some of the biggest private equity firms in the world. CPD whenever you need it Throughout their careers, finance professionals need access to continuing professional development. We provide training to help financial professionals develop their skills from their internship or new hire program, right through to board level one-on-one sessions. AMT is the preferred training partner for the majority of the world s leading financial organisations. Our highly regarded in-class training, online resources and support materials are available whenever and wherever you need them which explains our hard-earned reputation as the leader in our chosen field. Global experts AMT s network of offices spans EMEA, APAC and the Americas. Our people have first-hand experience of investment banking and the diversity of our team reflects the regions, sectors, subject areas, languages and cultures in which we work. Experienced client service managers, working out of our offices in London, New York and Hong Kong, provide local support for customers across the world s largest financial centres. Aligned with business objectives Working with your Learning and Development team, our client service managers identify and define specific learning requirements, matching program content with your business objectives. We believe in building long-term relationships based on full understanding of our clients businesses, allowing us to deliver comprehensive, cost-effective learning programs for organizations of all sizes; we offer complete consistency of service whether delivering limited local interventions or large scale international programs. Extensive personal support AMT s global client service team manages training calendars, course logistics, venues, attendance, evaluation and invoicing. Our client service managers provide individual support for delegates, guiding our clients through AMTO and answering their questions before, during and after their programs. At a personal level, you can expect the same long-term approach to understanding your needs and tailoring your learning accordingly. PUBLIC COURSES / 3
Public courses Our public courses enhance your technical knowledge and help build financial models with ease. You will learn Excel shortcuts - formulas, consistency and flexibility; as well as how to structure transactions and work through financing options with colleagues. You also pick up tips on how to deliver pitches confidently and in an orderly and logical manner. PUBLIC COURSES / 4
Bengaluru Core Skills Financial Modeling Fundamentals & Three Statement Modeling Financial Modeling, Forecasting, Integrity and Error Checking Building a Financial Model from Scratch Advanced Skills M&A Modeling Divestiture and M&A Modeling Issues LBO Modeling Hong Kong Core Skills Financial Modeling Building a Financial Model from Scratch Valuation, Trading Comparables and DCF Advanced Skills M&A Modeling Divestiture and M&A Modeling Issues LBO Modeling Credit Risk N.B. AMT Training reserves the right to cancel/postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to the scheduled commencement date. Delegates will be given at least 5 business days notice of such changes. PUBLIC COURSES / 5
Mumbai Core Skills Financial Modeling Fundamentals & Three Statement Modeling Financial Modeling, Forecasting, Integrity and Error Checking Building a Financial Model from Scratch Advanced Skills M&A Modeling Divestiture and M&A Modeling Issues LBO Modeling Singapore Core Skills Financial Modeling Building a Financial Model from Scratch Valuation, Trading Comparables and DCF Advanced Skills M&A Modeling Divestiture and M&A Modeling Issues LBO Modeling PUBLIC COURSES / 6
Sydney Core Skills Financial Modeling Building a Financial Model from Scratch Valuation - DCF, Trading Comparables and LBO Advanced Skills M&A Modeling Divestiture and M&A Modeling Issues LBO Modeling Banking Masterclass PUBLIC COURSES / 7
Financial Modeling Fundamentals and Three Statement Modeling Location Bengaluru Mumbai Level Core Skills Core Skills No. of days 1 1 Time 9:00am 5:00pm 9:00am 5:00pm Price USD 625 USD 625 Description Delegates will learn how to model and integrate the income statement, balance sheet and cash flow of a fast food business using Excel. In addition to learning the steps necessary to build a three statement financial model, delegates will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Delegates also learn how to stress-test the assumptions used, to check their work efficiently and to document it. Through the process of building a more complex three statement model, delegates are taught how to model operating cash and calculate interest using average debt and average cash balances. The class will address in detail how to work with intentional circular references. The issue of non-intentional circular references is covered and delegates are taught modeling rules that are designed to help avoid them. The session is designed to expose delegates to different three statement modeling styles: multi-sheet, tower, and different income statement layouts. Exposure to a mix of modeling styles will help prepare them to work on in-house models or models they may inherit from other finance professionals. Learning outcomes Model and integrate income statement, balance and cash flow Best practice modeling rules Stress test assumptions Model operating cash and calculate interest Using intentional circular references Issues of non-intentional circular references Different three statement modeling styles PUBLIC COURSES / 8
Program outline Financial Modeling Fundamentals Using keyboard shortcuts Setting Excel up for maximum efficiency Working with key modeling formulas and structures Building 3-statement projections Modeling cash and revolver Addressing standards for good models Constructing the income statement, balance sheet and cash flow statement Introduction to checking methodologies Performing audit trails Incorporating interest income and expense Three Statement Modeling Modeling operating cash, excess cash and the revolver Calculating interest on cash and debt balances Working with intentional circular references Avoiding non-intentional circular references Building models with different styles and layouts Calculating ratios Our trainer made lessons very enjoyable and shared a wide breadth of practical case studies. I really enjoyed learning from him, and I hope to learn from him again. Analyst, private equity firm For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 9
Financial Modeling, Forecasting, Integrity and Error Checking Location Bengaluru Mumbai Level Core Skills Core Skills No. of days 1 1 Time 9:00am 5:00pm 9:00am 5:00pm Price USD 625 USD 625 Description Delegates will learn how to build a three statement model using a detailed revenue forecast with price and volume drivers. A full debt schedule, including a cash sweep, is incorporated into the model. In addition to the main class case model, delegates are given exercises to help them understand more complex modeling issues (for example, detailed depreciation schedules and working capital items). Common errors are covered from balancing a non-balancing balance sheet to debugging a model that is non-intentionally circular. Common errors are covered from balancing a non-balancing balance sheet to debugging a model that is non-intentionally circular. Learning outcomes Build three statement model using detailed revenue forecast Modeling issues detailed depreciation schedules and working capital items Identifying and overcoming errors PUBLIC COURSES / 10
Program outline Financial Modeling & Forecasting Complex 3 statement models Modeling a detailed revenue forecast Modeling a cash sweep Modeling a detailed debt schedule include a cash sweep Consolidating and re-applying knowledge of circularity, iteration, and a toggle switch Building cash flow statements from scratch Troubleshooting techniques for cash flow statements Finding errors and integrity checking Integrity and Error Checking Troubleshooting techniques for cash flow statements Finding errors and integrity checking Using Excel tools to help with integrity checking Finding unidentified hard numbers quickly and easily Using Excel s Jump tool to trace through formulas with ease Using Excel to show the formulas underlying output Using Excel to find inconsistencies in the model Using Excel s auditing tool to trace formulas Thank you for coming in and teaching us accounting basics. The session was full of positive energy, great industry examples and top class humour. I really enjoyed the session with zero drop of coffee and learned to critically analyse financial entries. For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com Intern, leading multinational bank PUBLIC COURSES / 11
Financial Modeling Location Hong Kong Singapore Sydney Level Core Skills Core Skills Core Skills No. of days 2 2 2 Time 9:00am 5:00pm 9:00am 5:00pm 9:00am 5:00pm Price USD 1,330 USD 1,330 USD 1,330 Description Delegates will learn how to model and integrate the income statement, balance sheet and cash flow of a fast food business using Excel. In addition to learning the steps necessary to build a three statement financial model, delegates will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Delegates also learn how to stress test the assumptions used, to check their work efficiently and to document it. Through the process of building a more complex three statement model, delegates are taught how to model operating cash and calculate interest using average debt and average cash balances. The class will address in detail how to work with intentional circular references. The issue of non-intentional circular references is covered and delegates are taught modeling rules that are designed to help avoid them. The session is designed to expose delegates to different three statement modeling styles: multi-sheet, tower, and different income statement layouts. Exposure to a mix of modeling styles will help prepare them to work on in-house models or models they may inherit from other finance professionals. Delegates will learn how to build a three statement model using a detailed revenue forecast with price and volume drivers. A full debt schedule, including a cash sweep, is incorporated into the model. In addition to the main class case model, delegates are given exercises to help them understand more complex modeling issues (for example, detailed depreciation schedules and working capital items). Common errors are covered from balancing a non-balancing balance sheet to debugging a model that is non-intentionally circular. Learning outcomes By the end of the course, delegates will be able to: Build a fully integrated three statement financial forecast using industry best practice Understand how to model debt including flexible debt repayments Understand key ratios and how these can be affected by assumptions Master shortcuts and forecasting formulas in Excel PUBLIC COURSES / 12
Program outline Day 1 Financial Modeling Fundamentals Using keyboard shortcuts Setting Excel up for maximum efficiency Working with key modeling formulas and structures Building three statement projections Modeling cash and revolver Addressing standards for good models Constructing the income statement, balance sheet and cash flow statement Introduction to checking methodologies Performing audit trails Incorporating interest income and expense Three Statement Modeling Modeling operating cash, excess cash and the revolver Calculating interest on cash and debt balances Working with intentional circular references Avoiding non-intentional circular references Building models with different styles and layouts Calculating ratios Day 2 Financial Modeling and Forecasting Complex three statement models Modeling a detailed revenue forecast Modeling a cash sweep Modeling a detailed debt schedule include a cash sweep Consolidating and re-applying knowledge of circularity, iteration, and a toggle switch Building cash flow statements from scratch Troubleshooting techniques for cash flow statements Finding errors and integrity checking Integrity and Error Checking Troubleshooting techniques for cash flow statements Finding errors and integrity checking Using Excel tools to help with integrity checking Finding unidentified hard numbers quickly and easily Using Excel s jump tool to trace through formulas with ease Using Excel to show the formulas underlying output Using Excel to find inconsistencies in the model Using Excel s auditing tool to trace formulas For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 13
Building a Financial Model from Scratch Location Bengaluru Hong Kong Mumbai Singapore Sydney Level Core Skills Core Skills Core Skills Core Skills Core Skills No. of days 1 1 1 1 1 Time 9am 5pm 9am 5pm 9am 5pm 9am 5pm 9am 5pm Price USD 625 USD 700 USD 625 USD 700 USD 700 Description You start with a blank Excel worksheet and learn an efficient way to input historical data from a pdf document. The financial statements of the case company are then analyzed, and the latest historical data is cleaned and prepared for the forecasting process. Ratios are calculated and assumptions for each line item in the financial statements are created. The full forecast model is then built. The forecasting techniques for several different items are examined separately, using dedicated Excel files, before being adapted for the case company. Learning outcomes Understand how to create a model template in Excel including styles Learn how to efficiently input historicals from pdf documents Learn how to build forecast assumptions Learn the best practices for stress testing formulas as you construct the model PUBLIC COURSES / 14
Program outline Identifying relevant information in the company s financial statements, management discussion and analysis, and notes Adjusting historical performance for acquisitions and divestitures Analyzing and making reasonable projections for a company s operating costs, non-recurring items, and other income and expense Creating assumptions and forecasting balance sheet accounts Revenues and costs Fixed assets - capital expenditure and depreciation Intangible assets Operating working capital Provisions Effective tax rate, taxes payable and the various deferred tax items Debt schedule Equity and share repurchases Building a cash flow statement from scratch Documentation techniques and ratio analysis Integrity checking Proved extremely enriching, especially when discussing case studies, current affairs or other practical applications of the theory. Of course MS Excel, the major tool in finance, played an extensive role on the course. 1st year financial analyst, global investment firm For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 15
Valuation, Trading Comparables and DCF Location Hong Kong Singapore Level Core Skills Core Skills No. of days 2 2 Time 9:00am 5:00pm 9:00am 5:00pm Price USD 1,330 USD 1,330 Description During this course, you will drill down on how to select comparables, where to find data in published financials and equity research reports, how to clean the raw data, and how to document and check the output. Identifying the most commonly used multiples and complexities are also covered. During day 2 of the program you will learn how to build a discounted cash flow valuation model and focus on the calculation of free cash flow. A detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state. You will analyze the weighted average cost of capital, calculate terminal values, using both the exit multiple method and the perpetuity growth method. You will also discount the free cash flows to arrive at enterprise values and calculate the implied share price. Learning outcomes Examine the concepts of enterprise value and equity value Examine the comparables, the data, where it is found and how it is used Discuss some of the most commonly used multiples Calculate free cash flows and discount them Learn how to calculate the value PUBLIC COURSES / 16
Program outline Day 1 Valuation Fundamentals The importance of valuation in the investment banking industry Fundamental vs. transaction value Overview of the major valuation methods Trading comparables analysis Discounted cash flow analysis Transaction comparables analysis LBO analysis Enterprise vs. equity value Book values vs. market values Derivation of enterprise values using market values Derivation of enterprise values using a fundamental valuation approach Trading Comparables Screening companies to identify a suitable comparable set Calculating the company s value Number of shares and value of share options Equity value Net debt calculations Minority interests and equity method investments Enterprise value Calculating the earnings numbers Cleaning non-recurring items from earnings and resulting tax adjustment Calendarization issues Last-Twelve Months (LTM) analysis For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com Calculating a range of forward looking and historical earnings multiples Revenue EBITDA EBIT P/E P/E/G Industry-specific multiples Calculating and using operating and credit ratios Troubleshooting and checking the output Applying the results Day 2 DCF Valuation Calculating unlevered free cash flows Drivers of cash flow Ratio analysis Weighted average cost of capital Optimal capital structure using peer analysis Establishing the company s forward looking cost of debt Cost of equity: understanding the risk free rate, the equity risk premium and beta Unlevering and relevering the beta Calculating WACC for the case company Calculating the terminal value Perpetuity growth (Gordon Growth model) method Exit multiple method Building a discounting model Mid-year adjustments Calculating enterprise and equity values Sanity checks Reinvestment rate and ROIC Implied multiples and growth rates Percentage of value in the terminal period PUBLIC COURSES / 17
Valuation DCF, Trading Comparables and LBO Location Level Sydney Core Skills No. of days 2 Time 9:00am 5:00pm Price USD 1,330 Description Delegates learn how to build a discounted cash flow valuation model. The session starts with an overview of the valuation methodology, and the steps required in setting up a valuation model. We then focus on the calculation of free cash flow. A detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state. We analyze the weighted average cost of capital, calculate terminal values, using both the exit multiple method and the perpetuity growth method. We discount the free cash flows to arrive at enterprise values and calculate the implied share price. Once the valuation is complete delegates perform several checks on the analysis using key ratios, and sensitivity and scenario analysis. The session focuses on the details of comparable company analysis. Multiples are calculated on both a historical and forecasted basis and delegates will assess the value of the case company based on a given set of comparables. Public information books (PIBs) are used throughout the session. Delegates are introduced to the basic concepts underlying leveraged buyouts. The session starts by establishing why private equity firms can create value through leveraged buyouts and how the levered valuation fits into the valuation roadmap. Using a simple free cash flow forecast, delegates establish how much a financial buyer could pay for the target company. Delegates then build a simple LBO model. Learning outcomes Examine the concepts of enterprise value and equity value Examine the comparables, the data where it is found and how it used Discuss some of the most commonly used multiples Calculate free cash flows and discount them Learn how to calculate the value LBO valuation as an alternative valuation methodology PUBLIC COURSES / 18
Program outline Day 1 DCF Valuation Calculating unlevered free cash flows Drivers of cash flow Ratio analysis Weighted average cost of capital Optimal capital structure using peer analysis Establishing the company s forward looking cost of debt Cost of equity: understanding the risk free rate, the equity risk premium and beta Unlevering and relevering the beta Calculating WACC for the case company Calculating the terminal value Perpetuity growth (Gordon Growth model) method Exit multiple method Building a discounting model Mid-year adjustments Calculating enterprise and equity values Sanity checks Reinvestment rate and ROIC Implied multiples and growth rates Percentage of value in the terminal period Day 2 Trading Comparables Fundamentals Calculating the company s value Number of shares and value of share options Equity value Net debt calculations Enterprise value Calculating the earnings numbers Cleaning non-recurring items from earnings Calendarization issues Last twelve months analysis Calculating a range of forward looking and historical earnings multiples Revenue EBITDA EBIT PE PEG Other value driver metrics Applying the results LBO Valuation What an LBO is and how it can create value LBO valuation as an alternative valuation methodology Characteristics of suitable LBO candidates Estimating cash flows available to capital holders Estimating debt capacity Simplified debt/equity split for entry capital structure Sources and uses of funds Debt structure Estimating the exit value Calculating the IRR Sensitizing the model For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 19
Credit Risk Location Level Hong Kong Advanced Skills No. of days 3 Time 9:00am 5:00pm Price USD 2,000 Description Delegates gain an understanding of the credit rating process by examining the assessment of both operational and financial risks of the business. By the end of the session, delegates derive a rating for a case company. This program analyzes the financials from the credit perspective, making technical adjustments to the main numbers to accurately reflect the creditworthiness of a company, project or going concern. In addition, the session covers debt structuring issues. In the context of writing an investment/ credit approval case, delegates incorporate the key concepts of credit analysis, credit/ investment documentation, syndication/ hold recommendations/issues, financial modeling and scenario management. Each of the concepts introduced in class generate the building blocks a realistic credit memo/investment recommendation. Delegates will work in groups alongside the instructor to write a credit case and ultimately deliver a recommendation to the credit committee/instructor. This module focuses on the analysis of companies that are solvent, but might become distressed should trading or financing circumstances deteriorate. We focus on operating cash flow dynamics (e.g. cash conversion), capital structure issues (e.g. understanding structural issues and assessing refinancing risk) and valuation implications (both for equity and debt). The options available to companies to avoid financial distress are also reviewed. Two case studies are used for practical application throughout the session. The focus is different from classic credit courses in using only the most relevant credit tools, not focusing on credit rating agencies, and including loan documentation, thus may be more relevant to practitioners who do not need a full suite of credit tools, just the tools for diagnosing degrees of stress. Learning outcomes Gain an understanding of the credit rating process Structure an investment/credit approval case Indicators/issues for potentially stressed companies PUBLIC COURSES / 20
Program outline Day 1 Credit Analysis Fundamentals What is credit analysis? Ratings scales Default and recovery rates Issuer and issue ratings Purpose of credit analysis Nature of credit risk Asymmetric nature of credit risk Difference between up/downside of equity and credit Credit Analysis - analytical approach Key principles: cash based, forward looking, peer group Evaluation of business and financial risks How to weight different risks Business risks Key drivers of business risk and their identification Macro, industry and company specific evaluation Financial risk Key components of financial analysis Cash flow analysis from a credit point of view Various cash flow concepts of rating agencies Credit ratios: most common ratios and their application Credit ratios according to the ratings category Financial policy analysis Rating Agencies: overview Credit Analysis Issues Complex items from the standpoint of credit analysis Credit fundamentals summary recap Credit approach to adjustments to financial statements Impact on credit quality Rating agency view Pension obligations Operating leases Hybrid securities: equity or debt? Securitizations Off balance sheet obligations Capitalized interest Structural issues in credit analysis The importance of structures and assessment frameworks Notching up/down of debt Contractual subordination Structural subordination Parent/subsidiary link Rating agency methodology Documentation covenants Concept of covenants Type and benefit of covenants Day 2 How to write an investment and credit case Building a credit/investment case, key components: Transaction summary and recommendation Risks and mitigants Financial and cash flow projections summary Collateral and security package analysis From term sheet, delegates will effectively be able to identify Issuer/borrower Issuance/amount Maturity dates/coupon payments Pre-payments/redemptions Covenants Collateral Use of proceeds Governing law From syndication memorandum Commitment type - Best Efforts, Firm U/writing Type of mandate (co-lead, etc.) PUBLIC COURSES / 21
Other syndicate members Pricing & profitability Total deal size and size of participation Pricing & profitability Final hold requirements and limits (size, tenor, rating, country specific buckets/credit/portfolio strategy) From marketing/internal materials Background on the relationship with client (new, existing) Size of current exposure, if applicable Legal standing/relationship, if applicable Other key considerations (strategic/ portfolio management considerations, product cross-selling, regulatory/ compliance issues) Risk assessment/credit rating (shadow/ internal ratings) Analysis of business/industry risk and mitigants SWOT analysis, Porter s five forces, etc. Analysis of financial risk/mitigants Cash flows for debt repayment Key ratios for credit rating Covenants Build scenarios and sensitivities for covenant monitoring and repayment/ recovery (base, stress and default cases) Financial covenants and their credit impact Nonfinancial covenants and their credit impact Collateral analysis, valuation and enforceability considerations Day 3 Cash flow and credit analysis for potentially stressed companies Cash flow analysis Analyzing operating cash flow generation and cash conversion capacity Assessing the impact of future operating investment requirements, including operating working capital management and maintenance capex Capital structure analysis Using credit ratios to assess credit risk (e.g. debt/ebitda, EBITDA/interest) Understanding structural issues (e.g. cash flow upstreaming issues, structural subordination issues, intercompany debt guarantees, multiple borrowers with joint & several liability, intercompany loans, etc.) Assessing refinancing risk Market data (credit spread to measure credit risk, bond prices & bond yields, CDS and credit indices), sources and reliability of data Financing issues Different debt products and which companies realistically have access to them (in the current climate) and what creditors look for in re-financing/new financing Debt terms & conditions including credit ratio covenants and the potential to trigger early debt repayment Restructuring alternatives Debt forgiveness, payment extensions, debt-equity swaps, convertible bonds For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 22
Crunch The Numbers series Our Crunch The Numbers series of books describe the essentials of modeling techniques, valuation methods and M&A analysis. Investment Banking Fundamentals Get the low down on how investment banks operate. Bring the basics to the table and start your learning journey here. To find out more, please visit www.amttraining.com/bookstore
M&A Modeling Location Bengaluru Hong Kong Mumbai Singapore Sydney Level Advanced Skills Core Skills Advanced Skills Core Skills Core Skills No. of days 1 1 1 1 1 Time 9.00am 5.00pm 9.00am 5pm 9.00am 5.00pm 9.00am 5.00pm 9.00am 5.00pm Price USD 625 USD 700 USD 625 USD 700 USD 700 Description During this session, delegates build a fully integrated merger model which combines financial statement forecasts for the acquirer and the target. Practical consolidation issues are addressed. The deal analysis focuses on the financing structure, pricing, earnings and credit impact and value creation. Learning outcomes The advantages of a full-blown merger model Consolidating the financial statements of acquirer and target Assessing the value creation potential of the deal using return on invested capital (ROIC) analysis For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com Program outline The advantages of a full-blown merger model Preparing the stand-alone data for acquirer and target Preparing key deal data Building a flexible funding structure using a sources and uses of funds table Calculating goodwill Dealing with fair value adjustments to the target s net assets Dealing with refinancing of target s debt Modeling fees (advisory, debt-issuance and equity-issuance) Consolidating the financial statements of acquirer and target Synergies Earnings accretion/dilution and relative P/E analysis Assessing the value creation potential of the deal using return on invested capital (ROIC) analysis Contribution analysis Analysis at various prices (AVP) Net present value of synergies vs. control premium Identifying the maximum offer price and a suitable financing mix PUBLIC COURSES / 24
Bookstore Revamped and updated Through this book's coherent and carefully structured approach, you will learn basic accounting skills needed to become a great financial analyst. It has a wealth of practical examples, including a real life case study to help you understand and value companies correctly To find out more, please visit www.amttraining.com/bookstore
Divestiture and M&A Modeling Issues Location Bengaluru Hong Kong Mumbai Singapore Sydney Level Advanced Skills Advanced Skills Advanced Skills Advanced Skills Advanced Skills No. of days 1 1 1 1 1 Time 9.00am 5.00pm 9.00am 5pm 9.00am 5.00pm 9.00am 5.00pm 9.00am 5.00pm Price USD 625 USD 700 USD 625 USD 700 USD 700 Description This session covers the strategic, financial modeling and accounting implications of divestitures and asset sales. Spreadsheet work and real cases are used throughout the session. This session addresses three key complexities in M&A models: Noncoterminus year-ends, using a flexible deal date, currency translation and the creation of non-controlling interests. In order to fully benefit from the session, participants should have knowledge of the fundamentals of M&A accounting and familiarity with financial modeling. Learning outcomes Motives and cons of divestiture and restructuring options Impact on balance sheet Key complexities in M&A models PUBLIC COURSES / 26
Program outline Divestiture Analysis and Modeling Divestitures: strategic and financial objectives Balance sheet analysis Deconsolidation process Calculating the gain on disposal, including tax Tax basis vs. book basis of investment sold Dealing with non-controlling interests Adjusting the capital structure of the business to be divested Use of sale proceeds and scenario analysis Operating investments (capex or business acquisitions) Investments in financial assets Repayment of debt Repurchase of shares Special dividend EPS analysis, including using relative P/Es M&A Modeling Issues for Banks Building a M&A model: overview Building a M&A model Non-coterminous years: calendarizing the financials of the target Using a flexible deal date Dealing with different currencies Creation of non-controlling interests Proved extremely enriching, especially when discussing case studies, current affairs or other practical applications of the theory. Of course MS Excel, the major tool in finance, played an extensive role on the course. 1st year financial analyst, global investment firm For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 27
LBO Modeling Location Bengaluru Hong Kong Mumbai Singapore Sydney Level Advanced Skills Advanced Skills Advanced Skills Advanced Skills Advanced Skills No. of days 1 1 1 1 1 Time 9.00am 5.00pm 9.00am 5pm 9.00am 5.00pm 9.00am 5.00pm 9.00am 5.00pm Price USD 625 USD 700 USD 625 USD 700 USD 700 Description Delegates learn how to structure an LBO and model the impact of the new financing structure. This session concentrates on understanding the implications (both modeling and deal) of the finance structuring. Participants complete a fully integrated model with an income statement, balance sheet and cash flow statement. Learning outcomes Structure an LBO and model the impact of new financing structure Understanding the implications of modeling and deal Program outline General overview of a levered transaction: basic principles Drivers of value creation in a levered transaction How leverage increases the return on equity What makes a good LBO candidate The concept of cash flow lending The lender s perspective: risk, return and exit routes Structural subordination Financial instruments used in levered transactions Senior debt (revolving facility, terms A, B and C) Second lien Mezzanine loans High yield bonds PIK notes Preferred shares, shareholder loans, vendor loan notes Ordinary equity Build a full LBO model from a template Main deal assumptions: focus on cash flow drivers and how to sanity-check preliminary assumptions PUBLIC COURSES / 28
Sources and uses of funds table Ownership structure Goodwill calculation Creating the opening balance sheet Deal adjustments, including amortization of debt issuance fees Tax loss carry forwards Cash flows available for debt servicing Repayment schedules for individual debt instruments Acceleration of debt payments using a cash sweep mechanism Modeling the revolving credit facility Circularities and the interest calculations PIK interest Credit ratios Calculation and interpretation of returns to the equity investors Calculation and interpretation of returns to mezzanine investors Sensitizing the outputs of the analysis Modeling different operational scenarios using Excel functions I attended AMT s financial modeling courses and they helped bring me up to speed with a few new techniques and tricks. I ve certainly strengthened my financial skills feel that I can make a real difference in my team. Research analyst, management consultancy For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 29
Banking Masterclass Location Level Sydney Advanced Skills No. of days 3 Time 9:00am 5:00pm Price USD 2,000 Description This session begins with an overview and recap of bank s financial statements. After understanding the basics, the principles of both accounting for loans and financial instruments are explained. Finally, the differences between US GAAP and IFRS are considered. The bank regulatory module provides delegates (particularly those who have no prior knowledge of regulatory capital) with an introduction to bank regulation. The regulatory environment is explained, and the key Basel accords are introduced. Delegates will learn how to model and integrate the balance sheet, income statement and regulatory requirements of a real life commercial bank using Excel. In addition to learning the steps necessary to build a bank financial model, delegates will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Delegates also learn how to stress-test the assumptions used, to check their work efficiently and to document it. The valuation session focuses on valuing a case bank. A dividend discount valuation is derived from an existing forecast model, and the results are sensitized within Excel. Multiples are calculated on both a historical and forecasted basis and delegates will assess the value of the case company based on a given set of comparables. Public information books ( PIBs ) are used throughout the session. The M&A module covers the basic steps of analyzing an acquisition within the bank industry covering the impact of a deal on the financial statements with a particular focus on EPS, PE and contribution analysis. By the end of the session, the class builds an accretion/dilution model using EPS forecasts and acquisition assumptions, proforma capital ratios and a proforma balance sheet. During this session, delegates build a fully integrated merger model which combines financial statement forecasts for the acquirer bank and the target bank. Practical consolidation issues are addressed. The deal analysis focuses on the pricing, earnings and capital impact and value creation. Learning outcomes Bank regulation Commercial bank modeling Bank M&A fundamentals PUBLIC COURSES / 30
Program outline Day 1 Bank Accounting Banks financial statements Key items - balance sheet and income statement Loans, investments, deposits, nondeposit funding, equity and capital Net interest and non-interest income, operating costs, profits Accounting for loans Expected realizable value Non-performing loans Understanding impairments vs. writeoffs Accounting for Financial Instruments Fair value and amortized cost accounting Held to maturity, available for sale and trading financial instruments Accounting for derivatives Impairments and write-downs of financial instruments Level 1,2 and 3 assets Minimum capital ratios: from Basel II to Basel III Minimum and buffers above minimum: conservation and counter cyclical buffers and buffer for systemically important banks Impact of Basel III: phasing in of Basel III requirements Bank Regulatory Capital Fundamentals Overview of regulatory framework Role of BIS, EU directives and national implementation Role of the regulator Introduction to available and required capital and risk weighted assets calculation Overview of Basel I, II and III Day 2 Commercial Bank Modeling Modeling banks performance The balance sheet drives the income statement Forecasting the loan book Forecasting the trading book Forecasting funding need and mix: deposit vs. wholesale funding Growth in funds under management Net interest income and margin: impact of asset liability mismatch and of the yield curve on net interest income margin Non-interest income Earnings quality and earnings sustainability Forecasting loan impairment through the credit cycle Operating costs Tax Forecasting dividends using a payout ratio and/or minimum capital requirements Linking income statement items to the balance sheet Completing the model Summary Reality check of forecasts Key performance ratios Bank Valuation Valuing a real case bank Review of Gordon growth model Banking trading multiples: P/BV, P/E, dividend yield Dividend discount model vs. cash flow to equity model Cost of equity for banks Terminal value: review of potential approaches, limits and benefits Straight perpetuity formula and sensitivity to growth rate PUBLIC COURSES / 31
Sensitivity analysis Basel II vs. Basel III scenario analysis Day 2 Bank M&A Fundamentals Big picture: what is the transaction impact on acquirer and target shareholders? Preparing key acquisition data Building a flexible funding structure Modeling acquisition adjustments Calculating the accretion/dilution effects of the deal Understanding the significance of relative P/Es Ownership issues Income statement contribution Capital ratios Synergies and synergies needed to break even Proforma balance sheet Sensitivity and scenario analysis Equity accounting for the acquisition of a small stake in a target Synergies from banking deals Revenue vs. cost synergies Restructuring costs Earnings accretion/dilution and relative P/E analysis Impact of a transaction on the capital ratios of bidder Analysis at various prices (AVP) Value added from a banking combination: net present value of synergies versus control premium Bank M&A The advantages of a full-blown merger model Preparing the stand-alone data for acquirer and target Preparing key deal data Building a flexible funding structure using sources and uses of funds table Calculating goodwill Dealing with fair value adjustments to the target s net assets Modeling fees (advisory, debt-issuance and equity-issuance) Consolidating the financial statements of acquirer and target Purchase accounting and the mechanics of full consolidation Modeling the completion balance sheet and consolidated financial statements post-deal Creating a non-controlling interest at acquisition date For further information on dates or to enrol on to our courses, please visit amttraining.com, call +852 3905 3059 or email shova.thapa@amttraining.com PUBLIC COURSES / 32
Bookstore We have a range of books, shortcut guides and interactive workbooks to help develop your skills and support for your career. Bestsellers Our Crunch The Numbers series describe key financial topics in a succinct fashion so you have access to the information wherever and whenever you need it. Ultimate Set A set of 6 lightweight A5 sized books covering the following topics: Accounting Fundamentals Modeling Valuation Advanced Accounting Power Modeling (Excel 2007/2010) Merger Modeling and Analysis Essential Series A set of 3 lightweight A5 sized books covering the following topics: Accounting Fundamentals Modeling Valuation Find out more by visiting www.amttraining.com Expert Series A set of 3 lightweight A5 sized books covering the following topics: Advanced Accounting Power Modeling (Excel 2007/2010) Merger Modeling and Analysis PUBLIC COURSES / 33
Why should you attend? Undergraduates, Interns and Graduates Invest in your future and stand out from the crowd Securing a graduate scheme at a top financial organization without work experience can be challenging. Ideally, they would like you to have intern experience and to be passionate about finance. Financial institutions will often select only the best prepared candidates to be fast tracked into their graduate scheme. If you aspire to work in corporate finance, M&A, private equity, asset management, private banking, global markets or sales and trading, you will need to be numerate and excel at analyzing financial and market information. By attending an AMT public course, you will learn about financial statement analysis, financial modeling and valuation. You will gain the knowledge and skills for those all important interviews. Experienced finance professionals Enhance your skills and stay ahead in your career Working for a leading financial institution means that you ll be working in a highly competitive environment. In order to stay ahead you ll need to keep pace with the current standards of others in the finance industry. AMT s courses ensure that you maintain and enhance the knowledge and skills you need to deliver a professional service to your clients. You become more effective in the workplace. This assists you to advance in your career and move into new positions. PUBLIC COURSES / 34
What you will receive on the course Study materials While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include: printed course binder with copy of the slides laminated summary sheets: 24/7 access to AMT Online (AMTO) class recordings course notes quizzes electronic homework/study files What to bring You need to bring a Windows based laptop to the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not Mac based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class, however please inform us of your Excel version when booking your course. This course is non-residential. The venue will provide light refreshments. For our full terms and conditions please visit www.amttraining.com/terms-and-conditions Pre-requisites A working knowledge of Financial Statements and Financial Modeling is desirable. PUBLIC COURSES / 35
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