Course overview
'Investment Banking' aims to provide practical "hands-on" experience in giving corporate advice and transaction structuring. Delegates will be provided with vital skills to identify their clients' needs, as well as to provide sensible recommendations so that their clients will be making efficient decisions on:
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the strategies to be followed
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the transactions to be structured
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the valuations to be made
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the instruments to be chosen
Summary of course content
- Understand corporate objectives and identify clients / prospects needs
- Advise and recommend appropriate strategies or investment banking solutions to clients
- Assess and evaluate different financing alternatives and valuation methodologies
- Learn the process of effective negotiation
Methodology
Instead of formal lecture sessions, this course puts heavy emphasis on worked examples, case studies
and role-play exercises to ensure participants' understanding of the techniques being discussed, and enables participants to apply the knowledge learnt. One distinctive feature of the programme is the interactive "hands-on" case studies and simulation exercises which encourage delegates to think more closely about the strategic issues involved.
Who should attend this training course?
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Corporate finance professionals in investment banks, corporates and law firms
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Venture capitalists
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Strategic planners
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Management consultants and other strategic consultants
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Lawyers, accountants and tax specialists
Supporting publications
DAY ONE
Overview: the difference between investment banking and corporate banking
- Shareholder value and stakeholder value
- The distinctive attributes of the "Bulge Bracket" firms
- How investment banks add value for their clients
Exercise: SWOT analysis of corporate vs. investment banks
Understanding the client/prospect via strategy analysis
- How corporates maximise shareholder value
- Defining corporate objectives and linking to investment banking products
- Advising the strategy
- Promoting corporate re-structuring
Case study: Analysis and review of local corporates before making a pitch
Mergers & acquisitions
- Identifying relevant targets for acquisition
- Valuing synergies and their pitfalls
- Financing the deal: the options
Case study: Cross-border acquisition
Delegates are given an Information Memorandum on a company operating cross-border. They should decide:
- Its value
- Which companies are buyers
- How to pitch to prospective buyers
How to finance the deal: structured financing
- The depth of the Euro-market
- Asset securitisation and asset-backed securities
- Convertible bonds
- Leveraged financing
Case study: Analysing a securitisation transaction
Private equity and venture capital
- A typical structure
- Risk and returns
- Public to private deals
- Financial ratios
- Recent developments
- Structuring an LBO transaction
DAY TWO
Negotiating a venture capital investment
Case study: Express delivery
Working in groups as either investors or entrepreneurs, delegates negotiate the terms of a venture capital investment
Company valuation
- Introduction to valuation: what is the purpose?
- Generic choices for valuation techniques
- Accounting methods
- Net asset value
- Cash flow methods
Valuation exercise: Project Water – valuing a business through comparable company analysis
Valuation of companies: cash flow models
- Concept of Discounted Cash Flow (DCF)
- Review of DCF methodology
- Calculation of free cash flow
- Calculation of cost of capital
- Cost of debt
- Cost of equity
- Weighted Average Cost of Capital (WACC)
- Calculation of terminal value
- Calculation of enterprise and equity values
Exercise: Calculating the cost of capital and using DCF to arrive at company value
Company valuation case study
Use excel modelling to determine the valuation of the constituent parts of a corporate. Based upon the conclusions reached, make a proposal for acquisition/ disposal will be made.
DAY THREE
Corporate restructuring
- How restructuring needs arise
- Causes and symptoms of decline
- Diagnostics
- Preserving shareholder value: ICI, GUS
Prospectus and presentation exercise
- The class will be given details of Asian companies, and working in groups, will prepare a brief presentation to the class of investment banking opportunities. This will be followed by a class discussion of the effectiveness of the presentations and analysis of what opportunities may exist with such companies
Research and analysis
- Delegates will review the work undertaken previously on preparing to make a pitch to a corporate client to win investment banking business
Understanding the process of negotiation
- 5 steps in the process of negotiation - specifics of selling investment banking products
- Key behaviours of pitfalls to avoid in the investment banking world
- 6 key rules of the game when selling on the telephone in the investment banking arena
- Power and need perceptions are all important
Roleplay
- Participants will present their marketing pitch to the "client" (played by the trainer)whose iformation they have analysed
- Whole class review of the role plays and summary of key learning points
Course summary and conclusion
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Jonathan Wearing
Jonathan Wearing runs his own corporate consultancy and corporate finance advisory business in the City of London. Besides providing strategic advice and working on M&A transactions, he is involved in the raising of early-stage and development capital for small companies with the potential for fast growth. He holds a number of non-executive directorships of investee companies.
Jonathan began his City career in the corporate banking group of Citibank N.A. London where his responsibilities involved the provision of acquisition finance and the development of international banking business for a variety of corporate customers. After six years of relationship management responsibilities he spent two years organising problem loan workouts for companies that had fallen into difficulties, most notably ICL and Chloride Group.
From there, Jonathan moved to Citicorp Investment Bank Ltd, where initially he was a member of a small team responsible for originating euromarket and corporate finance business with UK corporates. This led to a specialisation on M&A activities followed by membership of CIBL¡¦s corporate finance department, of which he was a Director. In addition to traditional London flotation, takeover and rights issue transactions, he was involved in cross-border deals, covering India, Singapore, Australia and Europe. These included joint ventures, mergers and acquisitions, buyouts and company listings.
Jonathan has an M.A. in Economics from Cambridge University and was a visiting Lecturer at the City University Business School, from 1999 to 2003.
Courses run by this instructor
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