Course dates
A 4-day comprehensive training course designed to provide delegates with an understanding of the following:
- Different corporate valuation techniques and their applications using Excel
- Qualitative factors affecting valuations
- The impact of capital structure on valuation
- The impact of corporate finance transactions on valuation, including LBO's
- Specific valuations, e.g high growth, cyclical and distressed companies
Course Background
The valuation of companies is fundamental to the operation of the capital markets. It forms the basis of share trading and corporate finance activity, including capital raising, mergers, acquisitions, demergers and disposals. A number of case studies across a range of industries are considered to help course participants practice valuation techniques and also to illustrate that corporate valuation can involve a high degree of subjectivity. This course does not extend to the analysis of banks, insurance companies or structured vehicles.
Teaching Methods
The teaching methodology used on this course combines formal theoretical instruction with frequent reference to market data, use of exercises and case studies. Case studies are based on real situations and are designed to help delegates implement new valuation techniques and to learn from empirical experience. Delegates are expected to know how to use Excel at a basic level and should bring a personal computer with them. The course is intended to be practical and inter-active, with delegates encouraged to ask questions. The techniques taught to delegates are intended to be of immediate practical use in the workplace. The lecturer will be available throughout the duration of the course to offer additional help if required.
Who should attend
- Investment bankers
- Fund managers
- Equity analysts
- Equity traders
- Equity sales people
- Corporate Finance Lawyers
- Credit analysts
- Strategists
- Treasurers
- Compliance officers
To find out more about accommodation, and places of interest within Paris please visit: http://en.parisinfo.com/
DAY 1
Background, valuation fundamentals and multiple analysis
Introduction to corporate valuations
Valuation fundamentals
-
Drivers of valuation – ROIC, WACC, growth, size
-
The FCF perpetuity valuation formula; single & double period
-
The key value driver valuation formula
-
Economic profit/EVA
-
ROIC vs. WACC – computation & drawbacks
Case studies: Valuing companies using the above formulae
Valuations based on multiples
-
Revenues, EBITDA, Net income/EPS, NAV
-
Overview of following ratios: PE, PEG, EV/EBIT(DA), PB/NAV
-
Dividend yield valuations
-
Cleaning up the reported results to derive underlying performance
-
Reconciliation of multiple valuations to the key value driver formula
-
Earnings vs.. cashflow
-
Choosing comparable companies
-
EPS dilution/enhancement
Case studies: Valuing companies using multiple analysis
DAY 2
DCF valuations and financial modelling with Excel
-
The CAPM; unlevered & levered betas, risk premia, tax shields and WACC
-
Explicit forecast period vs. continuing value period
-
Assessing the terminal value (multiple or perpetuity method)
-
Importance of final year forecasts
-
Calculating NPV and IRRs
-
Comparing valuations using multiples vs. DCF
-
Advantages and drawbacks of each valuation method
Advanced DCF methods
-
Changing annual WACC
-
Three stage DCF
-
Adjusted present value (APV)
-
Compressed APV & Recursive WACC
-
Calculating debt & equity values directly
Case studies: Modelling in Excel to produce DCF valuations; reconciling to multiple valuations
Day 3
Impact of corporate finance
Impact of corporate finance transactions on valuations
-
Friendly/hostile takeover
-
Merger
-
Demerger/spinoff/break-up
-
IPO/New equity offering calculations
The premium payable
The impact of capital structure on valuation
-
Increasing equity value through use of debt
-
Focus on shareholder value
-
Companies suited to leverage
-
Debt markets & credit ratings
-
Analysing debt capacity
Leveraged buyouts
Day 4
Specific valuations; qualitative factors and financial statements
Specific valuations
Reversing into the terminal growth rate
Accounting factors & financial statements
-
GAAP revenues/earnings vs. cash revenues/earnings
-
Accounting standards (IFRS, US GAAP)
-
Accounting tricks to enhance profitability
-
Analysis of historic results including ratio analysis
-
Off balance sheet liabilities
Qualitative factors
-
SWOT analysis
-
Sovereign risk analysis
Case study: Assessing emerging market risks
- Industry risk analysis
-
Good vs. difficult industry
-
Porter’s five forces
-
Industry life cycle (growth)
-
Industry cyclicality (earnings quality)
-
Leading indicators
-
Competition (ROIC)
-
Pricing dynamics; demand vs. supply (ROIC)
-
Changing business environments
-
Regulation (ROIC)
-
Product characteristics (earnings quality)
-
Capital intensity & cost base (ROIC)
-
Event risk
Company specific factors
-
Management
-
Operating, capital and corporate finance strategies
-
Competitive advantages & cost position
-
Product/service offering/differentiation/pricing power
-
Scale
-
Diversification
-
Customer/supplier concentration
Structural issues – shareholders, group, etc
-
Shareholder structure
-
Group structure
-
Ownership and government support
-
Structural & contractual subordination
-
Dividend policies, share buybacks, share issues
Course summary and close
Centrally located hotel in Paris, Paris, France
This programme takes place on a non-residential basis at a hotel in central Paris. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
-
Sarah Martin
Sarah Martin has spent seventeen years working as an investment banker in Europe and the US. She has principally worked in the credit markets and has experience of the US and European high grade and high yield markets, the European new issue markets, the Asian convertible bond markets, of corporate restructurings of distressed credits and was the lead analyst on the largest LBO in Europe in 2000 (Tecnost/Telecom Italia). She also has extensive experience of corporate finance transactions, including mergers, disposals, privatisations, IPOs and capital raisings. She was latterly an Executive Director at Lehman Brothers in Fixed Income Research in London, having also worked for CS First Boston and Kleinwort Benson. She now works on an independent basis advising the legal profession and companies on credit analysis and company valuation. She has a degree in economics from the London School of Economics and stock exchange qualifications from London and New York.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
26-28 Sep 2012 (Paris, France)
Delegates will leave this intensive three-day financial modelling in Excel training course with the ability to effectively apply modelling techniques in a wide range of practical scenarios. Featuring: Design & structure different models and translate them into Excel; Calculate free cash-flow; Use Monte-Carlo simulations; Identify decisions tree - problems & solutions; Develop models incorporating risk, sensitivity, optimisation and forecasting using solver.
28-30 May 2012 (Amsterdam, Netherlands)
15-17 Oct 2012 (Amsterdam, Netherlands)
This 3-day interactive workshop offers a practical study of the techniques of valuing and financing acquisitions.
18-20 Jun 2012 (Paris, France)
19-21 Nov 2012 (Paris, France)
A 3–day training course dedicated to the valuation, structuring, financing and negotiating of Merger and Acquisition transactions.
26-29 Mar 2012 (Prague, Czech Republic)
3-6 Dec 2012 (Prague, Czech Republic)
Excellent 4-day course teaching you how to build a successful corporate banking strategy and how to raise the performance of your institution. The course will teach you how to use the planning process to set goals, control costs and to increase the profitability of clients and sales channels.
19-22 Mar 2012 (Prague, Czech Republic)
A comprehensive, 4-day valuation course for banking experts.
10-13 Dec 2012 (Istanbul, Turkey)
A 4-day, intermediate-level course for people with several years experience in finance who want to reinforce and diversify their knowledge of the underlying frameworks and approaches in different areas of financial management.
26-30 Mar 2012 (Paris, France)
10-14 Dec 2012 (Paris, France)
A 5-day, case-study based workshop exploring more advanced issues in company valuation and financial modelling.
27 Feb 2012 - 1 Mar 2012 (Prague, Czech Republic)
25-28 Sep 2012 (Prague, Czech Republic)
This 4-day course provides a comprehensive look at the most important recent trends and developments in bank reporting. It will improve your analysis skills, giving you the toolkit for better decision making, helping safeguard your organisation.
4-7 Jun 2012 (Paris, France)
3-6 Dec 2012 (Paris, France)
A 3-day course designed to provide a complete overview of the Venture Capital industry and its workings. Participants will gain a thorough understanding of the role and operations of a venture capital fund, and the complex financial engineering methods it uses.
4-6 Sep 2012 (Oslo, Norway)
This 3–day course will provide delegates with all the necessary practical skills to model and value oil and gas companies, from the perspective of an investor, an equity analyst or a participant in a corporate transaction, whether a corporate or an advisor.
18-21 Jun 2012 (Moscow, Russia)
This highly practical 5-day case study based workshop will lead you quickly from the basics through to the more advanced valuation methodologies and modelling techniques.
23-26 Apr 2012 (Prague, Czech Republic)
15-18 Oct 2012 (Prague, Czech Republic)
This 4-day workshop takes a hands on approach to a comprehensive set of financial modelling and valuation techniques with computer based case studies.
14-16 Mar 2012 (Istanbul, Turkey)
A 3-day highly practical training course on building financial models.
25-27 Jun 2012 (Oslo, Norway)
An intensive, 3-day, computer-based, practical training course with case studies and worked examples.
21-24 May 2012 (Prague, Czech Republic)
A 4-day project and corporate financing course covering modelling and valuation, with added sessions on financial
modelling in Excel
15-17 Oct 2012 (Prague, Czech Republic)
This 3-day course is designed to give delegates a comprehensive overview of the latest techniques and methodologies to successfully manage a corporate banking and SME network.
24-26 Apr 2012 (Frankfurt, Germany)
This 3–day course will provide delegates with all the necessary practical skills to model and value oil and gas companies, from the perspective of an investor, an equity analyst or a participant in a corporate transaction, whether a corporate or an advisor.
21-24 May 2012 (Istanbul, Turkey)
The course takes you through all the applications of corporate finance from M&A to IPO's to LBO's. However, a key element is that the course demonstrates how the many different applications draw upon a common core framework based upon the principles of financial economics that is reviewed on the first day.
Course dates