An intensive three-day computer based practical financial modelling in Excel training course with case studies and worked examples, featuring how to:
- Design & structure different models and translate them into Excel
- Calculate free cash flow
- Use Monte-Carlo simulations
- Identify decision trees - problems & solutions
- Develop models incorporating risk, sensitivity, optimisation and forecasting using solver
On completion of this highly practical, hands-on training course, attendees will:
- Know the different types of financial models and when each should be applied
- Be able to design models and translate these in Excel
- Be able to develop models for their own use, incorporating elements such as risk, sensitivity, optimisation and forecasting
COURSE BACKGROUND
Financial modelling techniques allow users to improve the reliability, quality and timing of their decision making. Modelling techniques are now used in many different areas, such as investment appraisal, capital planning, budgeting, valuation and financial analysis and forecasting. 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.
COURSE STRUCTURE
The course starts by focusing on the advanced use of Excel in modelling. These newly gained skills will be applied in the construction of basic company valuation models, before the incorporation of risk assessment, scenarios, optimisation and forecasting into the models. With the help of the course director and through a proven step-by-step approach, delegates will then construct models of different types. Delegates will leave this intensive three-day course with the ability to effectively apply modelling techniques in Excel in a wide range of practical scenarios.
TEACHING METHOD
This programme will be delivered through practical and interactive case studies and worked examples, demonstrating how and why each technique is used. Emphasis is placed on delegates gaining practical, hands-on experience of the design and construction of financial models in Excel. Delegates will also benefit from formal lectures and group discussions. Comprehensive product notes and modelling software will be provided for future reference.
WHO SHOULD ATTEND THIS PROGRAMME
This course has been designed for:
- CFOs
- Financial controllers and managers
- Financial & business analysts
- Risk managers
- Accountants
- Corporate treasury managers
- Middle office staff
- General managers
Day 1
Overview of Modelling Techniques
Module 1: Introduction and Overview
- Outline of financial modelling
- Examples of Excel financial models
- Useful Excel features and techniques
Exercise: Analysing examples of modelling techniques
Module 2: Spreadsheet Best Practice
- Model design and structure – key steps
- Financial analysis basics – financial statements
- Cash flow and ratios
- Case outline – introduction
Exercise: Defining a model plan for a financial analysis model
1. Model design
2. Model objective
3. Required results
4 Model structure
5. Automation
6. Documentation and help
Exercise: Techniques for modelling financial statements
Module 3: Auditing and Testing
- Examples of spreadsheet errors
- Essential testing and auditing techniques
- Example: Testing financial analysis model with cash flows and ratios
Exercise: Debugging and checking a financial model
Module 4: Practical – Project Model 1
- Practical project model exercise
Questions and answers
Day 2
Forecasting, Risk and Simulation
Module 5: Macros and Security
- Visual Basic in Excel
- Writing and auditing and macros
- Spreadsheet security
Exercise: Writing and auditing macros
Module 6: Forecasting Models and Time Series Analysis
- Review of forecasting methods
- Understanding financial ‘drivers’ for analysis, valuation and project models
Exercise: Deriving forecast free cash flow and ratios
- Linear methods
- Smoothing and seasonality
- Macro forecasting and regression
Exercise: Producing a forecast with time series analysis
Module 7: Risk Techniques
- Valuation model and cost of capital fundamentals
- Risk and multiple answers
- Scenario techniques
- Advanced financial functions
Module 8: Practical – Project Model 2
- Review of initial answers and identification of potential risks
- Adding risk techniques to the project model in module 4
Questions and answers
Day 3
Optimisation and Reporting
Module 9: Risk and Simulation
- Elements of a simulation model
- Building blocks in Excel
- Monte Carlo simulation methods
Example: Building a simulation model in Excel
Module 10: Optimisation and Targeting
- Overview of optimisation and targeting
- Goal seek and Solver methods
Example: Targeting using the composite valuation model
Module 11: Practical – Project Model 3
- Extend the project model to answer management questions and target specific results
- Completing and auditing the project model
Module 12: Management Reporting
- Requirement to consolidate and summarise data
Exercise: Consolidating data from different sources
Exercise: Pivot tables
- Techniques for summarising data
Exercise: Producing a management analysis
Module 13: Practical - Management Reporting and Forecasting
- Analysis of company financial data
Exercise: Extend the valuation model to produce a meaningful management summary report with charts
Questions and answers
Course summary and close
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Alastair Day
Alastair is a finance professional with extensive experience of business analysis systems, accounting, funding and treasury activities. As a Director of Technology Group Limited, he was responsible for establishing the treasury function and modelled large transactions for evaluation and lease portfolio acquisition.
As an alternative to flotation, the directors subsequently sold the company to a public financial services group. Alastair established an independent lessor and consultancy. He has conducted a range of modelling and consulting assignments producing models for financial analysis, valuation, mergers, buyouts, projects and data analysis.
In addition, Alastair works as a consultant with Euromoney Training in Europe, Asia, Middle East, Africa and America, designing and delivering courses covering financial modelling from general modelling to specific valuation, leasing and other courses.
Alastair has a degree in German and Economics from London University and an MBA from the Open University Business School. He is an associate lecturer at the Open University Business School and has written a number of books and publications.
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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.
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This course has now expired please email us to find out when the course will next be running.