Corporate Finance Modelling School

Corporate Finance Modelling School

The Corporate Finance Modelling School is dedicated to mastering Financial Modelling for sectors including Private Equity, Investment Banking, Real Estate, Consulting, and Asset Management. The focus of the school is on the practical application of accounting and finance in the real world.

Program Overview:

Throughout the course, students will construct various financial models and analyse the financial statements of companies. Each day involves building financial models using Excel, covering integrated cash flow, real estate, valuation, and M&A modelling. By the end of the course, students will have created models akin to those employed by investment bankers, management and strategy consultants, private equity, real estate professionals, and asset managers.

Delivery Method:

This School offers a blend of In-Person and Virtual delivery. After completing the in-person training, participants will engage in individual virtual sessions with the course instructor for two hours of personalised guidance.

Key Learning Objectives:

Comprehensive understanding of financial statement components.
Proficient in financial statement analysis.
Mastery of valuation methodologies and techniques.
Advanced financial modelling skills.
Proficiency in investment analysis and clear articulation of financial results.

Who Will Benefit:

Professionals frequently engaged with real estate financial models.
Mid-level to senior Analysts.
Real Estate Managers seeking a deeper understanding of debt dynamics and financial return fluctuations.
Real Estate Analysts aiming to expand their financial modelling skills.

Course Outline

Day One

Review accounting 101.
Understanding the income statement, balance sheet and cash flow statement and how these three financial statements are related to each other.
Non-recurring charges and goodwill.
Overview of the documents used for financial analysis and modelling, including annual and quarterly filings, with an emphasis on financial statements and notes to the financial statements.
Ratio Analysis and its importance for analysing financial statements.
Normalising financial statements, calculation of Last Twelve Months (LTM) numbers and calendarization.
Case study.

Day Two

Introduction to four common valuation methodologies – comparable company analysis, precedent transaction analysis, discounted cash flow analysis.
Understanding equity value and total enterprise value (TEV).
Comparable company valuation analysis, selecting appropriate comparable companies, spreading comparable companies, benchmarking and determining the valuation of the company based on the comparable company analysis.
Case study.

Day Three

Introduction to financial modelling.
Assumptions worksheet, income statement, balance sheet, cash flow statement.
How the three financial statements are linked with each other.
Checking the historical data.
Complete the assumptions worksheet.
Projection of revenues, COGS and other income statement and balance sheet items.
Building debt and interest schedules.
Modelling and projecting the financial statements.
Income statement, balance sheet and cash flow statement.
Analysing the output and checking for errors.

Day Four

Overview of discounted cash flow analysis.
Unlevered free cash flow and forecasting free cash flow.
Terminal value.
Sensitivity analysis.
Creating a data table and checking data table results.
Weighted average cost of capital (WACC).
Using the CAPM to estimate the cost of equity.
Estimating the cost of debt.
Case study.

Day Five

Building an LBO model.
Determine purchase price, sources and uses table, proforma balance sheet, changing the three-statement model to reflect LBO, the sale of company, IRR and credit statistics.
Accounting treatment of M&A and financing fees and goodwill.
Uses of an LBO Model.
IRR, credit statistics and valuation methodology.
Case study.

121 Session

Post-Training 121 Virtual Session

Following the completion of the Corporate Finance Modelling School, a 121 two-hour virtual session with the instructor will be arranged for each delegate.
This session will be arranged within an allocated period of time.

Course Details

Number of days: Five days + 2 Hour Virtual Session
Delivery: In-Person & Virtual
Course type: Schools
Course level:
Pre-requisite: None
CPD Hours: 32.5