Investment Banking Institute Providing Financial Training Solution to Capital Market Aspirants Certification in “Financial Modeling and Company Valuation” From Investment Banking Institute “Basic and Advance Excel Specialist” from MICROSOFT (USA) Bridging the gap between academics and real life applications 47/16, Rajender Park Marg, Opp. Rajendra Place metro Station, New Delhi-110060 Tel:. 011-42244126 Mob:. +91-9310040603 www.ibinstitute.in IBInstitute Investment Banking Institute
Financial Modeling & Company Valuation Using Excel and VBA 2 Months / 16 Days Investment Banking Institute (IB Institute) is an "independent and autonomous training institute” which offers advanced level practical training on Advance Excel, Fundamental Analysis, Equity Research, Financial Modeling, Project appraisal, Company Valuation, Mergers and Acquisition and Advance Macro (VBA) to Working professionals and students. IB Institute was founded in 2009 by the ex-consultants and investment bankers having experience from top notch Investment Banking and consulting firms in the World. IB Institute provides instructor-led (Live) training and e-learning (Online) courses which develops the competitive profiles of the students for the interview and the working professionals on the job. After two years of successful completion, IB Institute is proud of training over 600 students in over 40 batches. The reason for success is the passion for teaching as well as exceptional experience of our trainers who are imparting their best and sharing their live experience. We ensure to make the session more live, provide more exposure with real issues to make a great learning experience for everyone. Our teaching methods ensure maximum comprehension in the shortest possible time. We provide a dynamic learning environment with lots of practical hands on exercises and real world examples. In general, all high-paying finance jobs will require knowledge and skills found in our syllabus for the interview and on the job. Reading the annual report, Financial Statement analysis, Forecasting, Valuation and financial modeling are an integral part of the day-to-day responsibilities of any professional working in the main stream Finance. We offer our training program in the workshop format. All these workshop are interactive based on real life situation. Beside, we make full use of, Participatory Exercises, Case Studies, and Practice Sessions. The Participant are given Comprehensive Reference Material & workbook witch is used by them during the workshop. The material also serves as a useful guide in future. Note: Candidate will be designing these models from scratch . Course Highlights:- 1.Basic and Adv. Excel 2.Financial Accounting and Financial Statement Analysis 3.Navigating the Annual Report 4.Financial Modeling using Adv. Excel 5.Valuation Techniques (DCF, Relative Valuation, Transaction) 6.Mergers and Acquisition 7.Visual Basic of Application (Macro in Excel) Industries where Financial Modeling is Used:- § Investment Banking § Project Appraisal § Private Equity § Hedge Funds § Equity Research § Corporate Finance § Knowledge Process Outsourcing § Asset Management § Rating Agencies § Consultancy Companies:- 1. Copal Partners 2. Evalueserve 3. Adventity 4. Ernst & Young 5. Amba Research 6. Aranca 7. SBI Capital 8. Barclays Capital 9. CiansAnlytics 10. Crisil 11. D E Shaw 12. ICRA 13. Analec Research 14. pipal Research 15. Smart Cube 16. Transparent Value 17. Morning Star 18. McKinesy 19. JP Morgan 20. Gridstone Research
Financial Modeling & Company Valuation Using Excel and VBA 2 Months / 16 Days Day 1,2& 3: Excel 2010 for Professionals: Here at IB Institute, we are specialists in offering expert level training courses for you to learn Advanced Excel and other great features of Excel. As part of our Advanced Excel training you will gain the necessary knowledge required for the efficient use of the tools and other exciting features which this outstanding software has to offer. There are many features which Advanced Excel has to offer to its user. In this training, we explain each & every advance tool which is used by practitioners. IB Institute's training leaves no stone unturned when it comes to making sure that you learn the Advanced Excel effectively and efficiently. In this way you will have the capabilities and required knowledge to really unleash the great power of Advanced Excel once you have made use of the Advanced Excel training courses which we provide. Day 1 Basic Excel Formulas and Functions:- üDefine short cut key to open Excel üBasic Mathematical Functions: Sum, Average, Sub Total, Sum Product üBasic Insert and delete short cuts to improve working with Excel üCustomizing Short cut keys, Find and Replace, AutoFill üPaste Special, Sorting, Go to Special, Clear tools, AutoFill, Formulas Auditing tools üLogical Functions:IF, Nested IF, IF with And & Or, Use of $, Use of & to concatenate üStatistical Functions: SumIF, SumIFs, AverageIF, AverageIFs, CountIF, CountIFs üDatabase Functions:Dsum, Daverage, Dmax, Dmin, Dcount, Dget üMath & stat Function:Rank, Large, Round, Trunc, Int, Mround, Ceiling,Floor Etc üThree dimensional Formulas, SubTotal to summarize the data, Remove duplicates, Text to Columns üWorking with Ranges, Conditional Formatting, Grouping Day 2 Adv Formulas and Functions üInformation Functions:IfError,IsError, IsNumber, IsBlank, Cell üLookup Functions:Vlookup, Vlookup with IF, Match and IsError, Index, Indirect, Nested Vlookup, Hlookup, Choose, Offset, Hyperlink, Address, Rows etc üText Functions: Right, Mid, Find, Search, Len, Trim, Replace, Substitute, Proper, Upper üAdv Sorting, Filter, Adv Filter, Data Validation, Consolidate, Define ranges üProtection of ranges, sheets, workbook, Track changes, working with multiple worksheets and workbooks, save workspace, Spinner, scroll bar, List box, combo box Day 3 Data Analysis Tools üFinancial Functions: PV, FV, IPMT, PPMT, PMT, Rate, FVschedule, NPV, IRR, Nominal, Effect, CumIPMT, CumPrinceetc üDate & Time: Custom Formatting, Date & Time Conventions, Today, DatedIF, Weekday, Networkdays, Workday, Edate, Eomonth etc üWhat if Analysis: Goal Seek, Data Table for sensitivity analysis, Scenario manager üUnique excel calculations and features üInserting sparklines, Setting document permissions üPivot table with large amount of data, Cover all Tabs from Home to Developer
Financial Modeling & Company Valuation Using Excel and VBA Using Excel and VBA 2 Months / 16 Days 2 Months / 16 Days Financial Statements Analysis and Accounting: Day 4 & 5 Financial and Valuation Modeling requires a solid understanding of accounting and financial statement interaction. Accordingly, IB Institute has developed Crash Course in Accounting & Financial Statement Analysis, which is very important for students with a limited knowledge of accounting or who wants to refresh their accounting concepts in a fast track mode without leaving the important concepts behind. We are not looking for a Debit / Credit discussionhere; we shall focus more on structure of Financial Statements, all different line items and how Financial statements are linked with each other. Our in-depth course in Financial Statements helps you learn and masterthe subject which is actuallyvery critical to the start ofyour finance career. This course will make you a Future Finance Professional not an accountant as the focus is on analysis, proper interpretation and check manipulation of accounting numbers to getcloser to the real No's required for analysis and valuation. üIncome Statement, Balance Sheet, Cash Flow Statement defined and importance explained üGo through every line item of the Financial statements and Related accounting standard üInteractions between financial statements and do an Impact analysis üUnderstand how financial statements are linked and how change in one item affect the others üOverview and explanation of all major financial ratios and there uses in difference sectors üDuPont RoE, Breakup of RoIC (RoIC tree) üUnderstand various accounting methods used and their implication to the Financial Statements üLearn all the three Financial Statements with Numerical Examples and cross check with the Annual üMethods of Consolidations of a subsidiary company with the holding company üFinancial Reporting vs Tax reporting, Reasons for Deferred tax üComplete with exercises that test and reinforce covered concepts. This part of the course efficiently provides the required accounting foundation for students enrolling in the Adv Level courses of IB Institute Day 6 & 7 Basic Financial Modeling Using Excel (Case Study of FMCG) Overview of the Program: Financial Modeling refers to the process of building a structure that integrates the Balance Sheet, Income Statement, Cash Flow Statement and supporting schedules to enable decision making in areas like, Business Planning and Forecasting, Equity Valuation, Credit Analysis/Appraisal, Merger/acquisition analysis, Project Appraisal etc. Trainees learn how to build full, dynamic Financial Statement Projection models in Excel from scratch, using real case studies and sensitivity analyses. Participants develop a model completely from scratch, inputting historical data and assumptions to project financial statements using step-by-step instruction on selecting and developing appropriate projection drivers. At completion, participants will have developed a complete and comprehensive three-statement model using various supporting schedules.
Financial Modeling & Company Valuation Using Excel and VBA Using Excel and VBA 2 Months / 16 Days 2 Months / 16 Days Interactive, Step-by-Step Learning Approach: Participants are given step by step instructions to build comprehensive models from scratch, the way it is done on the job by the Investment Banker. They are directed to external documents and resources (like Annual Report, Press Release, Quarter filings etc) needed for more information to make the model more accurate. Key Learning Outcomes Building comprehensive financial models from scratch for a Listed Company. § Learn to define assumptions and make forecast for Income statement, Balance sheet and Cash Flow statements with required item based schedules. § Integrate assumptions and drivers into financial models based on the information available in the Annual report. § Design various supporting schedules of: Working Capital, Deferred Taxes, Property, plant and equipments / Depreciation, Intangible Assets, Retained Earnings , and Debt & Interest § Calculate Ratios to identify Strength and weakness of the Firm § Perform sensitivity & Scenario analysis using data tables, Choose and Offset § Balance the model using the debt schedule and debt sweep logic. § How does the revolver facility actually balance the model? § How the financial statements are integrated using the Interest schedule? § What are circular references, why should they be avoided and how to deal with circular references § 2 Months / 16 Days Day 8 & 9 Oil & Gas Financial Modeling By now the participants would have learned the art of Financial Modeling. They should have under stood the Advance Excel, Financial Accounting, various ways to prepare schedule for Financial statements. In this part of the course, we are becoming more technical into Financial Modeling and prepare more robust Oil and Gas sector based Financial Model for a US listed company. This course is designed for finance professionals who are willing to pursue or pursuing career in Oil & Gas. You will get deeper knowledge about the participants in the sector, accounting terminology, key challenges, and major line items of Oil & Gas Company. This course allows trainees to develop an in-depth understanding of the industry, including financial statement analysis, appropriate Oil & Gas projection drivers such as commodity prices, production volumes, and operating costs. At completion, trainees will have developed comprehensive financial and valuation models for an Exploration & Production company case study. Key Learning Outcomes:- Different business segments – Upstream, Midstream, and Downstream – that make up the O&G industry üOil and Gas accounting and Financial statements analysis üLinks between three Financial statements and how they are different with normal companies üUnderstand different types of Oil & Gas Reserves üLearn different ways of presenting Oil & Gas reserves capacity, production into units üConversion factor of Oil to Gas and Gas to Oil, üFactors determining crude oil and natural gas prices üLearn O&G terminology, units, and key related terms üDistinguish between full-cost and successful efforts accounting methods üHow to Forecast crude oil and natural gas prices üVarious ways to project Revenue of E&P company and how to project operating expenses üMake projections for Exploration cost, ü
Financial Modeling & Company Valuation Using Excel and VBA 2 Months / 16 Days This is not "academic financial theory," but exactly what we do in real life in an investment bank. After this course, you will differentiate yourself from other IB professionals and students at top schools – even those with the best academic pedigrees and the highest GPAs. Valuation is the Process to determine the current worth of any asset. In our course, the asset is a company. For the valuation of companies, following are the three widely used techniques. Ø DCF valuation Ø Relative Valuation Ø Transaction Valuations In general all main stream finance profiles require the valuation skills found in our course. We shall take the most important three techniques which are used in every research house, Rating agency, Investment bank, consulting firm, Private equity and KPO. We shall understand the application of the techniques with real case studies and companies. Day 10 Discounted Cash Flow model (DCF) Modeling: In Financial modeling, cash flows are only forecasted where as in DCF valuation; those cash flows are used to derive the intrinsic value of the company. So by now the participants would have learned how the Financial Model is designed and Projections are made for the Company. Now we learn how to use Financial Models in Valuations. Valuation is the most important part the investment banking and corporate finance skill set. You need to have theoretical knowledge of valuation before building valuation models. Key Learning Outcomes When the theoretical frame work is laid down, the participants start learning DCF model which includes the calculations of FCFF, WACC, Terminal Value, Levered and un-levered Beta and Intrinsic Value. Using cash flows forecasted in the course, participants learn to prepare a DCF valuation model in Excel from scratch Understand differences between Enterprise value & Equity value, relative value & intrinsic value, Un-levered and levered free cash flows, and the implication on Enterprise value and implied share price. Deal with Non-equity claims, WC, CapEx and debt related items Calculate Terminal value with Multiple and Perpetual method Use of CAPM to calculate the discount rate by deriving the cost of debt of equity. Understand the role of capital structure in determining beta, the cost of equity, and ultimately WACC. Understand use of beta and how to de-lever and re-lever beta and implication on WACC. Calculate shares outstanding using the treasury stock method when Dilutive securities are ITM (In-the-Money) Utilize the enterprise value to determine implied share prices. Calculating net debt and treatment of debt equivalents such as preferred stock, convertible securities , capital leases , and minority interest Calculating options and convertible securities using both the standard and treasury stock methods ü ü ü ü ü ü ü ü ü ü ü
Financial Modeling & Company Valuation Using Excel and VBA 2 Months / 16 Days Day 11 & 12 Relative valuation modeling in Excel: Comparable Company Trading Analysis ('Comps') is the most basic but effective valuation tool used by investment bankers and analyst. This technique used in all kinds of valuations. For example:- Private market valuation, IPO valuation, comparative analysis, identifying potential targets for M&A etc Establishes value of A Company and measures its performance vis-à-vis the operating and trading statistics of company's peer group Training Methodology: The participants are first explained how to select the Peer Group (Comparables) before building the Models for Relative Valuation. In this part of the Program, we shall learn to design the real Template for Trading Combs which is actually used various Research companies. Then we shall take 10 companies from world over for relative valuations. Then participants are directed to build superb comps models in Excel from scratch, using real case studies, industry best practices, and sensitivity analyses. This model includes Switches, Output sheet, Valuations sheets, Currency Converter and forecasts. Leaning Outcomes: · Participants learn to select appropriate comparable companies by evaluating operational, financial, size, and other similarities · Set evaluation benchmarks & select comparable companies · Gather appropriate financial history and projections · Normalizing operating results and calculating LTM operating results · Exclude nonrecurring charges, normalize for stock option expense · Standardize various expense classifications including FIFO to LIFO inventory accounting · Calculate shares outstanding using the treasury stock method · Input financial data & calculate and interpret financial and market ratios · Presenting trading comps by structuring output schedule · Selecting and Evaluating Appropriate Multiples (P/E Trailing and forward, EBIT Multiple, EBITDA Multiple, P/B Multiple, Revenue Multiple, PEG) · Calculate and interpret financial and market ratios Common analytical challenges including Calandarization, nonrecurring items, dilutive securities, and classification issues are addressed using industry best practices. Day 13 Transaction Valuation Techniques: The “Comparable Transaction Analysis” or “Comparable Acquisition Analysis” is based on the premise thatthe value of a company or an asset can be estimated by analyzing the prices paid by purchasers ofownership interests in reported comparable acquisitions. The analysis provides a history of selected transactions either in one particular industry or in one areawhere acquired companies have relatively similar characteristics in terms of economic drivers such asbusiness mix, customer base, distribution channels, industry dynamics, etc. Transaction multiples define the prices which acquirers are willing to pay for control of the target companyin the context of an acquisition transaction. By applying transaction multiples to the financial results ofthe company being analyzed, it is possible to determine a range of value. Learning objective: 2.Identification of Comparable companies 3.Computation of Equity Value 6.Calculation of LTM Net Income, EBITDA 4.Determination of Net Debt Assumed and EBIT 1.Company Description 5.Calculation of Firm Value and share price 7.Computation of transaction multiples
Financial Modeling & Company Valuation Using Excel and VBA 2 Months / 16 Days Mergers and Acquisition Analysis” Day 14 Overview of the Program: · The participant are first explained the concepts of Merger and acquisition. · Participant build a model of M&A to see the pro forma impact of various scenario post merger · Understand the allocation of purchase price with Purchase method of accounting post merger · Under the accretion-dilution in EPS after the merger in various scenario after adjustments · Various methods for the payments (Stock based or cash based) Prepare a comprehensive Merger Model: · Design and Set up a control area for assumptions and drivers · Learn to deal with deal assumptions and various issues like (% cash vs. stock considerations, Purchase premium, Asset write-ups, Advisory fees, Financing fees, and severance fees) · Use of Treasury method to calculate shares outstanding · Appropriate treatment of convertible securities like Options, Warrants, Convertible debt and Preferred stock · Calculate Goodwill while allocating Purchase price to assets after re-evaluation of the assets of the target company · Adjust the Balance sheet and prepare the pro-forma Balance Sheet · Calculating Sources & Uses of funds with making the operating & synergy projections · Calculate the EPS post merger after making the adjustments to Income statement and prepare the pro-forma Income statements · Synergies required to break-even before and after tax if premium is paid · Sensitivity analysis: EPS accretion/dilution in stock vs. cash deal; interest rate assumptions, premium paid. · Analysis of contribution of Revenue, EBITDA, and Net Income post merger This model is designed with very practical approach to see the impact of acquisition of one company by another company after the real adjustments have been made to Financial Statements. M&A Accretion/Dilution Modeling Superb exhaustive accretion-dilution analysis Buy side and sell side processes Project the Consolidated Financial statements post merger and do the various adjustments for goodwill calculation Handle the Fair market value write ups, advisory fees and financing fees and debt refinancing Learn the proper treatment of various items like deferred taxes created in M&A and convertible securities and options. · · · · · Basic and Semi Adv. Macro (VBA) Day 15 üUnderstanding Macro (VBA) üRecording a Basic Macro, assign short cut key, adding comments to macro üWrite basic Macro to Understand VBE environment üRunning a macro, Saving Macro file, debugging the macro, Understanding Security üUnderstand Input box, msgbox Commands, create interactive macro üDo while…..Loop, Do Until…….Loop, For……Next, IF, If with IF üUnderstand various events, protection of macros üUser Defined Functions, Error handing, break points, üPractice powerful macro examples