Course Details

This course is appropriate for a wide range of professionals but not limited to:

• Financial Analysts and Senior Analysts
• Investment Bankers and Private Equity Associates
• Corporate Development and Strategy Professionals
• FP&A (Financial Planning & Analysis) Specialists
• Treasury and Capital Markets Managers

• Expert-led sessions with dynamic visual aids
• Comprehensive course manual to support practical application and reinforcement
• Interactive discussions addressing participants’ real-world projects and challenges
• Insightful case studies and proven best practices to enhance learning

By the end of this course, participants should be able to:

• Design and structure a three-statement financial model using industry best practices effectively.
• Model complex corporate finance issues like depreciation and working capital accurately.
• Incorporate advanced Excel tools and functions (e.g., INDEX, MATCH, SUMIFS) efficiently.
• Develop comprehensive scenario and sensitivity analyses to test model assumptions reliably.
• Master debt, interest, and circularity modeling techniques successfully.
• Build a Discounted Cash Flow (DCF) valuation model completely and defensibly.

DAY 1

Modeling Best Practices and Financial Statement Integration

• Welcome and Introduction
• Pre-test
• Principles of model design: structure, transparency, and auditing standards
• Advanced techniques for modeling historical data and historical ratio analysis
• Creating the core three financial statements (IS, BS, CFS) and ensuring integration
• Best practices for hardcoding inputs and building clear formula logic
• Mastering advanced Excel functions for model efficiency (INDEX, OFFSET, CHOOSE)

DAY 2

Advanced Operational and Working Capital Modeling

• Detailed modeling of Property, Plant, and Equipment (PP&E) and depreciation schedules
• Capital expenditure forecasting and modeling maintenance vs. growth CAPEX
• Comprehensive modeling of working capital accounts (AR, AP, Inventory)
• Integrating changes in working capital into the Statement of Cash Flows (CFS)
• Modeling revenue drivers, Cost of Goods Sold (COGS), and operating expenses
• Handling non-recurring items and adjusting GAAP financials for modeling purposes

DAY 3

Debt, Interest, and Circularity Modeling

• Structuring and modeling different tranches of debt and repayment schedules
• Calculating interest expense and interest income correctly
• Resolving circular references between interest expense, debt balance, and cash
• Using the "Plug" method and advanced iterative calculations to solve circularity
• Modeling mandatory and optional debt prepayment mechanisms
• Sensitivity analysis on interest rates and debt covenants

DAY 4

Valuation and Scenario Analysis

• Building a complete Discounted Cash Flow (DCF) valuation model from scratch
• Calculating Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) accurately
• Determining the Weighted Average Cost of Capital (WACC) and key inputs
• Estimating the terminal value using Perpetuity Growth and Exit Multiple methods
• Developing detailed scenario analysis (Base, Best, Worst case)
• Utilizing Data Tables, Goal Seek, and Solver for sensitivity testing

DAY 5

Mergers & Acquisitions (M&A) and Review

• Introduction to M&A modeling and key deal metrics
• Analyzing the financial impact of a merger (accretive vs. dilutive analysis)
• Modeling purchase price allocation and goodwill calculation
• Review of core valuation and modeling principles
• Advanced error checking and model auditing techniques
• Post-test
• Certificate ceremony