Business Case Modelling 2 Day Course This course is presented in London on: 30-31 October, 17-18 May 2018, 29-30 November 2018 The Banking and Corporate Finance Training Specialist
Background of the trainer The trainer has over 30 years experience in a wide range of roles in finance. He has delivered training courses on behalf of a number of international training companies since 2005. For the past 18 years, he has worked as a specialist financial modeller, trainer and analyst for a range of blue-chip clients, building financial models for major projects, structured financing, restructuring, Course Overview outsourcing and PPP transactions in numerous sectors. He has built, developed and used models to support commercial negotiations, analyse risk, test scenarios and forecast results. The trainer has trained others in his specialism of financial modelling, running both inhouse tailored courses for clients and public courses with major training companies all around the world. Course Content Modelling Style Introduction Modelling style Systematic Design Method Case study outline Required inputs and outcomes Risk factors Model planning Review - Examples of poor modelling style Best Practice Modelling Best financial modelling practice Importance of flexibility in the model Logic flow within the model Separation of inputs, calculations and outputs Use of flags to control timing factors Use of switches to allow option selection Keeping control of versions Use of corkscrews Making the model robust Common mistakes Demonstrations of all of the above Revenue and Costs Operational revenue Volume drivers Flags to control timings of changes Consistent coding techniques to enable flexibility Fixed and variable cost Real and nominal considerations Dealing with inflation Exercise build a simple cash flow model with revenues, fixed and variable costs, flags and switches
Financial Structure Capital structure Debt and equity funding Weighted average cost of capital (WACC) Fixed asset schedule Depreciation calculations Debt amortisation calculations Dealing with circular references Exercise add a capital structure to the previous model, with debt and equity injections, interest costs, debt amortisation and constrained dividend payments Adding Income Statement & Balance Sheet Cash flow schedule Adding a basic income statement (profit and loss account) Basic balance sheet Integrity checks Exercise add a simple income statement and balance sheet to the previous model Returns Accounting returns Adding a terminal value Project ratios DSCR, LLCR Discounted cash flow measures: NPV, IRR, XNPV, XIRR Comparing projects to assess most attractive choice Exercise add accounting returns, project ratios and discounted cash flow measures to the previous model Sensitivity Analysis Purpose of sensitivity analysis Sensitivity analysis: o Goal seek o Watch window o Data tables o Scenario manager Exercise add sensitivity analyses to the previous model Executive Summary and Audit Model checks & robustness Basic audit techniques Executive summary Charts Shortcomings of Excel models Exercise add an executive summary and charts to the previous model Workshop Summary Workshop summary Key points Future planning Workshop actions
Course Summary Business Case Modelling will allow users to improve the reliability, quality and construction of their Excel models. Financial modelling demands a logical consistent approach and this workshop builds a business case model through a series of practical stages. Upon completion, attendees will have a comprehensive understanding of advanced modelling, as well as how each technique can practically be applied through the use of Excel. Course Objectives: On completion of this highly practical, hands-on training course, attendees will: Be able to build a financial model from a blank sheet Be able to design models which minimise errors Be able to write models which can be maintained and augmented in the future Be able to develop models with advanced techniques such as sensitivity analyses Workshop Structure: The workshop starts with a discussion of modelling techniques and methods. Each session reviews the next stage of the model in terms of the financial theory, modelling techniques and potential difficulties and delegates build the model in stages. This is an intensive workshop and delegates will be spending the majority of the time on practical model building tasks. With the help of the Course Director and through a proven step-by-step approach, delegates will leave this intensive two-day workshop with the confidence and ability to apply advanced modelling techniques in Excel effectively. Workshop Methodology: This programme will be delivered through a practical and interactive case study and worked examples, demonstrating how and why each technique is used. Emphasis is placed on the delegates gaining practical, hands-on experience of the design and construction of financial models in Excel. Attendees will also benefit from formal lectures, demonstrations and group discussions. Comprehensive product notes and example models will be provided for future reference. Pre-requisite: Attendees need basic Excel skills to be able to participate fully in the modelling workshops. For example: Opening and closing Excel files Excel screen menu and standard ribbon menus Moving around a worksheet and between different worksheets in a file Creating files Deleting files and individual sheets Changing column width and row height Entering simple formulas Chart wizard Entering labels Cell references Centering titles and merging cells Simple cell and number formatting Changing font sizes and colours Copying, cutting and pasting cell contents
Previewing worksheets Printing documents and ranges Basic Excel functions and the ability to insert functions: Basic Excel formulas SUM, SUMIF, MAX, MIN Basic financial functions - NPV, IRR, PMT Logic functions - IF, AND, OR 09:30-17:00 London Standard Price: 1300 +VAT Membership Price: 1040 + VAT Delivering this course in-house for you to a number of participants could be very cost effective.