A comprehensive 4- day course for all financial professionals in banking, corporate finance, strategic and financial advisory, consulting, M& A departments and private equity houses that will help you to:
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Understand the most recent trends in the corporate finance sector
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Apply valuation and acquisition decisions on free cash flow
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Use the CAPM- Model
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Value target companies by different methodologies as DCF- method, multiples valuation and transaction comparables
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Analyse, value and execute an IPO- mandate
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Understand the debt capacity and the financing structures of leveraged finance transactions
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Finance private equity investors
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Structure and execute M& A transactions
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Identify the key value drivers and synergies in corporate acquisitions
Who should attend
The course will be of value to professionals in the following areas:
- Corporate finance experts
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M& A team members
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Commercial bankers and structured finance experts
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Financial analysts and credit analysts
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Strategic and financial analysts
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Members of the strategic planning and business development departments
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Professionals from the private equity and venture capital industry
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Financial and strategic consultants
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Advisors from accounting firms
Course level
This course provides the delegates with an in depth understanding of the corporate finance business. The course starts with an introduction to the most recent trends in the industry in mature and developing markets. Then delegates will analyse the importance of the free cash flow concept in order to assess the viability of investments and acquisitions.
The different valuation methodologies mostly used by corporate finance experts will be applied to target companies in different industries. Delegates will establish valuation ranges for different target companies based on the DCF- method, valuations using multiples and transaction comparables. In a second stage, the course will teach how leveraged and acquisition loans can be structured and priced using senior and junior bank debt, debt capital market instruments and hybrid forms as mezzanine, convertibles or warrants.
A particular emphasis will be laid on the private equity industry: the value creation of PE- firms, their financing techniques and the different exit strategies.
In addition, the course will teach how IPO mandates are structured, priced and executed. On the final day, emphasis is given to the preparation and execution of M& A transactions, the valuation of synergies and the understanding of the success factors in corporate mergers and acquisition processes.
Day 1
Corporate finance strategies and valuation
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Welcome and introduction
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Programme overview
- Delegates’ expectations
Understanding the corporate finance landscape
The different corporate finance strategies
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The corporate finance landscape
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Commercial banks vs. investment banks
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Products and services offered in corporate finance
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The three pillars of banking strategy
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Success factors in corporate finance
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The convergence of credit and capital markets
Understanding the differences between mature and emerging corporate finance markets
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Recent developments in mature markets
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The rise of the emerging markets
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How to compete successfully in emerging markets
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Understanding the Nigerian Banking and Corporate Finance market
Workshop: Defining the success factors for the African/ Nigerian corporate finance sector and analysing the different market penetration strategies.
The different concepts of valuation
Valuation methodologies
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The rationale to value companies
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The discounted cash flow method (DCF)
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The terminal value
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Perpetuity method and growth assumptions
- Calculating equity and enterprise value
Workshop: Company valuation based on the DCFmethodology.
Cash flow based valuations
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How to calculate free cash flow
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Identifying value drivers
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Incorporating growth, CAPEX, working capital, interest expenses, taxes
- How to treat special items in the financial statements
Case study: Calculating the free cash flow of an company from the financial statements.
Calculating cost of capital
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Cost of debt
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Cost of equity
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Understanding the weighted average cost of capital (WACC)
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The ß- factor
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The risk free rate and the market premium
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The CAPM- model
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Calculating the cost of capital of a private company
- Leveraging and deleveraging beta
Workshop: Calculating the cost of capital of a private and a stock list company
Day 2
Valuation with market multiples and the IPO process
Valuation by multiples
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Understanding best practice
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The rationale for valuations based on multiples
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Choosing the peer group
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The African stock market landscape
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Equity multiples
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Enterprise multiples
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Using transaction multiples
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Identifying and comparing non financial ratios
- Applying multiples in corporate finance
Case study: The valuation of a telecom company by applying different valuation methodologies.
Executing an IPO mandate
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Recent trends in equity markets
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Identifying IPO opportunities
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Considerations for a floatation
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What companies expect from their investment banks
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Selecting the bookrunner(s) and underwriters
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Pre- IPO due diligence
Valuating and underwriting an IPO
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Valuation of an IPO
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Marketing an IPO: the book building process
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Underwriting an IPO: firm commitment vs. best effort
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How the underwriting group is selected?
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Selecting the stock exchange
- Secondary offerings
Workshop: Critical examination of a possible floatation candidate: The competitive position, the operational performance and the result of different valuation methodologies.
Day 3
Leveraged and acquisition financeDetermining the debt capacity
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Traditional approaches
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DCF- methodology
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Introducing
- Sensitivity analysis
Workshop: Calculating the maximum debt capacity in a leveraged buy out.
The financing of a leveraged transaction
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The take over structure
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The capital structure
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Equity instruments
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Common equity
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Preferred shares
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Mezzanine
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The “traditional bank lending” instruments
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Senior debt
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Junior debt/ second lien
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Asset based financing
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Vendor loan
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Capital market driven instruments
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Understanding the equity and debt investors
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Analysing the take out structure for the acquisition financing
Structuring and pricing a leveraged finance transaction
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Recent trends in leveraged financing
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Traditional factors to determine a credit rating
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Financial ratios used in leveraged transactions
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The loan agreement
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Covenants
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Structuring and pricing a leveraged transaction in today’s market
Case study: Structuring a leveraged acquisition and considering the pay back options.
Understanding Private equity investors
Case study: Value creation in a leverage buy-out
Day 4
Mergers & AcquisitionsThe players in the M&A market
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The market for M& A advisory
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Dealing with different clients
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What companies expect from their investment bank?
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A comprehensive product range
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Capabilities required by banks
Rationale for acquisitions
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The market for M& A advisory
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Strategic considerations for acquisitions
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Acquisition versus organic growth
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Types of transactions
- Why do some acquisitions work and so many fail?
Workshop: Analysis of the success factors in mergers& acquisition.
Valuation of the target company
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Value creation in M& A
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Target valuation by different approaches
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DCF method
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Income and earnings multiples
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Comparable transaction
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Key performance drivers
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Identifying and valuing synergies
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The application of different financial ratios and the market perspective
Case study: Analysis of synergies in an acquisition project.
Negotiating a deal
Closing successful transactions
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Ralf. H. Fiedler
Former member of the Executive Board, ING Europe, BHF - Bank and Bayerische Vereinsbank in New York
Ralf. H. Fiedler is an executive with over 25 years experience in banking and consultancy; he is a former member of the executive boards of ING Europe, BHF- BANK and Bayerische Vereinsbank in New York. Ralf was responsible for managing large banking networks, corporate finance and investment banking activities geared towards small and medium sized companies.
In addition, he was frequently involved in restructuring projects to increase the efficiency and profitability of bank organisations, credit processes and risk management functions. Based on his assignments, he has substantial experience in developed and emerging markets.
Prior to joining the banking industry, Ralf worked for almost 10 years for BASF, the world largest chemical company. In this capacity, he was involved in the external funding programme of the company, strategic planning and the analysis and execution of numerous acquisition projects all over the world.
Today, Ralf is specialising in working with leading banks and financial institutions to design their strategies, to enhance profitability by seeking growth opportunities and product innovation, to address risk adjusted pricing and to streamline credit policies and procedures. In addition, he teaches Bachelor and Master courses in Banking and Finance at different universities.
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.
12-15 Mar 2012 (Manama, Bahrain)
A 4-day training programme for experienced
M&A professionals in investment banks, law
and advisory firms.
26-28 Nov 2012 (Dubai, United Arab Emirates)
An intensive 3-day, computer based practical training course with case studies and worked examples. With a step-by-step approach, this course will guide you through the various techniques available, providing you with a comprehensive understanding of advanced modelling, as well as how each technique can be practically applied through the use of Excel.
18-21 Mar 2012 (Dubai, United Arab Emirates)
21-24 Oct 2012 (Dubai, United Arab Emirates)
The purpose of this 4-day comprehensive training course is to analyse and practice a range of corporate valuation techniques, their appropriate application and their advantages and disadvantages.
23-25 Sep 2012 (Doha, Qatar)
A 3-day high-level negotiation course for senior managers in banking and finance.
21-23 Oct 2012 (Riyadh, Saudi Arabia)
An interactive 3-day course designed to enable participants to use Microsoft Excel to prepare logical and easy-to-use financial models to support transactions, forecasts and planning for ongoing business streams.
18-20 Jun 2012 (Dubai, United Arab Emirates)
A course to provide you with a working knowledge of the
principles and practices of the financial management of
companies and the financial analysis of leveraged buy-outs.
26-28 Mar 2012 (Doha, Qatar)
An intensive 3-day computer-based practical
training course with case studies and worked
examples.
25-27 Jun 2012 (Dubai, United Arab Emirates)
Financial Modelling in Excel is designed
to support financial analysts, modellers
and their managers in creating financial
models on a consistent and focussed
basis.
27-29 Feb 2012 (Abu Dhabi, United Arab Emirates)
A 3-day high-level negotiation course for senior managers in banking and finance.
22-25 Apr 2012 (Dubai, United Arab Emirates)
You will learn to apply various methodologies of valuing banks, understand their different results and their successful application to real life situations.
6-9 May 2012 (Dubai, United Arab Emirates)
7-10 Oct 2012 (Dubai, United Arab Emirates)
A 4-day case study-based workshop
exploring issues in company valuation and
financial modelling.
22-24 Oct 2012 (Dubai, United Arab Emirates)
A comprehensive 3-day course for banking experts. The course will teach how to successfully run a corporate banking network, how to manage your clients proactively and how to be responsive to their different needs.
This course has now expired please email us to find out when the course will next be running.