Financial Modelling and Valuation Course by Investment Banking Institute

1. Define short cut key to open Excel
2. Basic Mathematical Functions: Sum, Average, Sub Total, Sum Product
3. Basic Insert and delete short cuts to improve working with Excel
4. Customizing Short cut keys, Find and Replace, AutoFill
5. Paste Special, Sorting, Go to Special, Clear tools, AutoFill, Formulas Auditing tools
6. Logical Functions:IF, Nested IF, IF with And & Or, Use of $, Use of & to concatenate
7. Statistical Functions: SumIF, SumIFs, AverageIF, AverageIFs, CountIF, CountIFs
8. Database Functions:Dsum, Daverage, Dmax, Dmin, Dcount, Dget
9. Math & stat Function:Rank, Large, Round, Trunc, Int, Mround, Ceiling,Floor Etc
10. Three dimensional Formulas, SubTotal to summarize the data, Remove duplicates, Text to Columns
11. Working with Ranges, Conditional Formatting, Grouping

1. Information Functions: IfError, IsError, IsNumber, IsBlank, Cell
2. Lookup Functions: Vlookup, Vlookup with IF, Match and IsError, Index, Indirect, Nested Vlookup, Hlookup, Choose, Offset, Hyperlink, Address, Rows etc
3. Text Functions: Right, Mid, Find, Search, Len, Trim, Replace, Substitute, Proper, Upper
4. Adv Sorting, Filter, Adv Filter, Data Validation, Consolidate, Define ranges
5. Protection of ranges, sheets, workbook, Track changes, working with multiple worksheets and workbooks, save workspace, Spinner, scroll bar, List box, combo box

1. Financial Functions: PV, FV, IPMT, PPMT, PMT, Rate, FVschedule, NPV, IRR, Nominal, Effect, CumIPMT, CumPrince etc
2. Date & Time: Custom Formatting, Date & Time Conventions, Today, DatedIF, Weekday, Networkdays, Workday, Edate, Eomonth etc
3. What if Analysis: Goal Seek, Data Table for sensitivity analysis, Scenario manager
4. Unique excel calculations and features
5. Inserting sparklines, Setting document permissions
6. Pivot table with large amount of data, Cover all Tabs from Home to Developer

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.

1. Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
2. Go through every line item of the Financial statements and Related accounting standard
3. Interactions between financial statements and do an Impact analysis
4. Understand how financial statements are linked and how change in one item affect the others
5. Overview and explanation of all major financial ratios and there uses in difference sectors
6. DuPont RoE
7. Understand various accounting methods used and their implication to the Financial Statements
8. Learn all the three Financial Statements with Numerical Examples and cross check with the Annual
9. Methods of Consolidations of a subsidiary company with the holding company
10. Financial Reporting vs Tax reporting, Reasons for Deferred tax
11. Complete with exercises that test and reinforce covered concepts.

This part of the course efficiently provides the required accounting foundation for students enrolling in the Advanced Level courses of IB Institute

Financial Modeling refers to the process of building a structure in Excel that forecasts integrated 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.

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 model from scratch for a Listed Company in Telecom Sector.
• Learn to define assumptions and make forecast for Income statement, Balance sheet and Cash Flow statements with required item based schedules.
• Learn to How to define assumptions for a Telcom Company
• 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

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 Modelling 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

• Oil and Gas accounting and Financial statements analysis
• Links between three Financial statements and how they are different with normal companies
• Understand different types of Oil & Gas Reserves
• Learn different ways of presenting Oil & Gas reserves capacity, production into units
• Conversion factor of Oil to Gas and Gas to Oil
• Factors determining crude oil and natural gas prices
• Learn O&G terminology, units, and key related terms
• Distinguish between full-cost and successful efforts accounting methods
• How to Forecast crude oil and natural gas prices
• Various ways to project Revenue of E&P company and how to project operating expenses
• Make projections for Exploration cost

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

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.

Key Learning 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.

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:

1. Company Description
2. Identification of Comparable companies
3. Computation of Equity Value
4. Determination of Net Debt Assumed
5. Calculation of Firm Value and share price
6. Calculation of LTM Net Income, EBITDA and EBIT
7. Computation of transaction multiples

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

• Understanding Macro (VBA)
• Recording a Basic Macro, assign short cut key, adding comments to macro
• Write basic Macro to Understand VBE environment
• Running a macro, Saving Macro file, debugging the macro, Understanding Security
• Understand Input box, msgbox Commands, create interactive macro
• Do while…..Loop, Do Until…….Loop, For……Next, IF, If with IF
• Understand various events, protection of macros
• User Defined Functions, Error handing, break points
• Practice powerful macro examples

Investment Banking provides placement assistance to their students may it be resume building or taking mock interviews. IB Institute carries 100% placement record from last 11 years, all the students who have completed their financial modelling course from our institute has been placed with MNCs.