How much more could your company be worth and how can you help to achieve this? Companies often have enormous potential to increase the intrinsic value of their businesses – and this may often be much greater than management believes or expects. Achieving consistently superior value growth is arguably what distinguishes great companies from all others.

Driving business value as a principle is not new and yet many businesses have failed to grasp that it is something that can be explicitly managed. The process of driving business value, or ‘Managing for Value’, shows how to link long-term goals expressed in the financial strategy with day-to-day management tools, like budgeting. As a process, it requires a fresh look at what each business and function can and should do to unlock new sources of value growth.

This comprehensive 3–day course is designed to help delegates to:

• Understand the key challenges in financial strategy, budgeting and driving business value
• Understand the critically important and often ignored linkages between financial strategy, budgeting and business value
• Develop a value plan framework and link it to the strategy and key performance indicators (KPIs) in the budget
• Develop a master budget and calculate financial KPIs relating to conventional profitability criteria and value creating economic profit criteria
• Understand revenue budgeting and the importance of variance analysis
• Understand capital budgeting and the techniques associated with it
• How to apply capital budgeting techniques in financial strategy analysis
• Apply the principles of economic profit analysis or alternative value-performance related measures
• Understand the importance of non financial budgetary indicators and related frameworks, like the balanced scorecard
• Understand value based management and the principles of managing for value

Day 1

Strategy, performance, planning and control in context - the big picture

• Corporate strategy versus business strategy and difference from operational annual plans and budgeting
• Link between corporate strategy, financial strategy, planning and budgeting
• Managing for value and value based management (VBM) – managing for both short-term profit and long-term value

Basics of budgeting and variance analysis

• Introducing a framework for categorising industry risk across a range of key factors:
• Linking financial strategy, business unit analysis and budgeting
• Budgeting - link with financial statements
• Corporate strategy versus business strategy and difference from operational annual plans and budgeting
• Income and balance sheet analysis
• Ratio and key performance indicator (KPI) analysis
• DuPont framework for analysing business performance
• Classification of ratios
• Profitability ratios
• Liquidity ratios
• Working capital, including the importance of working capital management and the cash conversion cycle
• Debt ratios
• Market ratios
• Capital structure and solvency
• Cash flow analysis
• Z-score analysis
• Variance analysis
• Basics of variance analysis
• Flexible budgeting
• Rolling forecasts
• What are they and how to prepare
• Re-forecasting when there are changes in the environment
• Impact and likelihood analysis
• Actions required to get back on track and achieve the goals
• Behavioural aspects
• Budgeting game
• Need to link with performance measurement and reward systems

Case study: Developing and analysing a financial plan and applying the DuPont framework.

Economic profit analysis, performance measurement and key performance indicators (KPIs)

• Performance measurement, income statement analysis and economic profit
• Understanding and applying economic profit analysis
• Introduction to alternative approaches - Cash Value Added (CVA), Cash Flow Return On Investment (CFROI), and Value Driver Trees (VDTs)

Day 2

Capital budgeting

Interest and time value of money concept and application

• Compound interest, the time value of money and discounted cash flow (DCF) methodology
• Interest rate and inflation relationship - the Fisher effect

Project appraisal/ capital budgeting techniques

• Payback period
• Return on investment
• NPV and (modified) IRR analysis
• Profitability index
• Impact of capital rationing
• Decision-making criteria
• Importance of sensitivity analysis
• Quantitative versus qualitative issues

Group work: Applying the capital budgeting techniques in practice.

Cost of capital and hurdle rates

• Why important
• Portfolio assessment
• Valuation – DCF analysis
• Performance measurement – economic profit
• Determination of the cost of capital
• Weighted average cost of capital
• Cost of equity
• Different methods, e.g. Capital asset pricing model (CAPM)
• Understanding components:
• Risk-free rate
• Beta
• Equity risk premium
• Derivation in developing markets
• Cost of debt
• Different methods -including yield to maturity and credit spread
• Debt:equity mix: book versus market values
• Hurdle rate: what are they and why used

Case study: Reviewing a cost of capital calculation for a publicly traded company.

Day 3

Using the tools of project appraisal to evaluate strategy in financial terms

• Using valuation principles to examine financial strategy
• Valuation components for strategy valuation focussing upon differences from project appraisal and project financing decisions
• Derivation of cash flows using value driver information and financial statements
• Time and competitive advantage period
• Key challenges, e.g. estimating terminal value
• Value drivers - definition and application
• Market signals analysis -triangulation and share price
  analysis

Case studies: Strategic value analysis of a publicly traded company.

Managing for value and value based management (VBM)

• Definition and principles
• Managing for both short-term profit and long-term value
• Link between managing for value and operational plans
• Value shifts and conglomerate discount
• Examples, including 'parenting' of strategic business units
• Consolidated versus business perspective - sum of the parts analysis
• How to use the corporate valuation toolkit to value strategic business units
• Deriving the strategic business unit cost of capital and the use of competitive analysis to establish required information
• Managing business units to grow value
• Importance of value perspective
• Importance of relative valuation
• Link with merger and acquisition analysis

Case study: Excel based case study requiring:

• Calculation of the strategic business unit cost of capital
• Calculation of strategic business unit value
• Valuation of the whole company comprising 4 different business units
• Assessment of the issues in deriving an optimal capital structure

Wrap-up and summary

• Putting it all together:
• Interpreting financial strategy in financial terms
• Converting this to a business unit perspective
• Linking the strategic perspective to financial planning and budgeting

Group exercise: brainstorming the challenges in implementation

• The course director is Emeritus Professor of Finance and Accounting at Henley Business School, University of Reading, and a Visiting Professor of Finance at University College, London.
   
  Currently, he is the CEO of his own group of companies and an advisor to a number of organisations at board level, including one in the Middle East. He has advised numerous companies, financial institutions, and private equity groups, and he has worked extensively in developing markets in Asia, South America, Africa, the Middle East and Central/Eastern Europe. As a private equity investor the course director was a founding member of a group that secured a successful AIM listing on the London Stock Exchange in the late 1990’s.
   
  The course director has a unique blend of academic and business experience. From his academic studies, all undertaken part-time whilst working, he has a PhD in Finance, a Masters in Management Studies (MBA) and a first degree in Psychology, Sociology and Economics. During the professional part of his career he qualified as a Chartered Management Accountant, Company Secretary and Corporate Treasurer. He is a Fellow of the Chartered Institute of Management Accountants, the Institute of Chartered Secretaries and Administrators, and the Association of Corporate Treasurers.
   
  He has written numerous articles and both authored and co-authored many books; the most recent is due for publication in 2013.
  

  Courses run by this instructor

  • Effective Business Analysis
  • Corporate Finance School
  • Mergers and Acquisitions: Expert Techniques and Strategies

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.

International Financial Reporting Standards

12-15 Aug 2013 (Johannesburg, South Africa)
11-14 Aug 2014 (Johannesburg, South Africa)

A 4-day training program providing you with a completely up-to-date practical analysis of the complex requirements of International Financial Reporting Standards (IFRS).

Valuation of Mining Companies

3-5 Dec 2013 (Johannesburg, South Africa)

A three-day financial training course on the valuation of mining companies.

Financial Modelling in Excel

23-25 Jul 2013 (Johannesburg, South Africa)
3-5 Dec 2013 (Johannesburg, South Africa)
23-25 Jul 2014 (Johannesburg, South Africa)
3-5 Dec 2014 (Johannesburg, South Africa)

A 3 day financial training course on financial modelling in excel.

Modern Corporate Governance

10-13 Jun 2013 (Johannesburg, South Africa)

This 4-day financial training course deals with questions like – What is so special about corporate governance? How are banks regulated? and includes insights from international experience.

Corporate Finance

24-27 Jun 2013 (Nairobi, Kenya)

The course provides participants with a working knowledge of the principles and practices of applied corporate finance including: financial analysis, modelling and valuation. This will enable participants to acquire a sufficiently thorough understanding of the subject in order to be able to use the tools and techniques in an effective manner.

Structuring Leveraged and Mezzanine Finance

22-24 Nov 2013 (Johannesburg, South Africa)

The aim of this intensive 3-day training course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures. Delegates will be introduced to international practice in executing leveraged transactions, which will include due diligence, accounting issues and valuation techniques. Case studies will include opportunities to structure leveraged finance transactions.

Advanced Company Valuation & Financial Modelling

25-29 Nov 2013 (Johannesburg, South Africa)

A 5-day case study based workshop exploring more advanced issues in company valuation and financial modelling.

Back Office Management

4-7 Jun 2013 (Johannesburg, South Africa)

The practitioners' guide to achieving a successful and effective back office operation.

Advanced Company Valuation & Financial Modelling

23-27 Sep 2013 (Nairobi, Kenya)

A 5-day case study based workshop exploring more advanced issues in company valuation and financial modelling.

Back Office Management

3-6 Dec 2013 (Harare, Zimbabwe)

Use a systematic approach to achieve a well controlled and cost effective back office by implementing the latest, leading internationally recognised, management techniques.

Strategic Planning, Control, and Budgeting

19-22 Aug 2013 (Lagos, Nigeria)

A 4-day intensive and hands-on training workshop that will provide delegates with a thorough understanding of current topics.

Fundamentals of Agribusiness

26-28 Aug 2013 (Johannesburg, South Africa)
27-29 Jan 2014 (Johannesburg, South Africa)
25-27 Aug 2014 (Johannesburg, South Africa)

A practical and highly interactive 3-day training course, incorporating numerous case studies to enhance delegates understanding on the production and transformation of agricultural products and their distribution.

Mastering Financial Negotiations

25-27 Sep 2013 (Johannesburg, South Africa)

A 3-day high-level negotiation course for senior managers in banking and finance.

Mergers and Acquisitions: Expert Techniques and Strategies

13-15 Aug 2013 (Johannesburg, South Africa)

A 3–day training course dedicated to the valuation, structuring, financing and negotiating of merger and acquisition transactions.

Finance for Non-Financial Managers

22-26 Jul 2013 (Nairobi, Kenya)

Finance for Non-Financial Managers is an intensive five-day course designed to provide non-financial managers and others with the knowledge and confidence required to comprehend and participate in financial decision-making and analysis.

Building Financial Models

7-9 Oct 2013 (Accra, Ghana)

This comprehensive 3-day workshop builds a financial analysis and valuation model through a series of practical stages.

Effective Business Analysis

3-5 Dec 2013 (Nairobi, Kenya)

This 3-day programme focuses upon how the toolkit of conventional business analysis can be linked sequentially and logically with the principles of financial economics. It will provide critical insight into how the tools and techniques of conventional business analysis can and must be adapted.

International Public Sector Accounting Standards

10-14 Jun 2013 (Johannesburg, South Africa)
19-23 Aug 2013 (Johannesburg, South Africa)

A complete guide to IPSAS compliance for public sector organisations.

Financial Modelling in Excel

4-6 Mar 2014 (Lagos, Nigeria)

Leadership & Strategic Management in Banking School

27-31 May 2013 (Nairobi, Kenya)

The overall aim of this 5-day, top-level school is to explore how leading banks are led and managed strategically, and how the delegates' banks could upgrade their own approaches.

Mastering Financial Negotiations

5-7 Jun 2013 (Nairobi, Kenya)

A 3-day high-level negotiation course for senior managers in banking and finance.

Successful Branch Network Management

9-12 Jul 2013 (Nairobi, Kenya)

This comprehensive 4-day management course will improve the effectiveness and success of your banking branch network.

Corporate Finance School

8-11 Jul 2013 (Johannesburg, South Africa)

This 4–day Corporate Finance Applications course is a practical "how to" programme dealing with numerous disciplines within the subject of corporate finance.

Process Excellence in Financial Services

9-11 Sep 2013 (Johannesburg, South Africa)

A highly interactive 3-day practical workshop designed for improving efficiency for senior managers working in the financial industry.

Accounting for Pensions & other Employee Benefits

3-5 Jun 2013 (Johannesburg, South Africa)

A 3-day intermediate training course with comprehensive coverage of the complexities of accounting and financial components of pensions and other long-term employee benefits.

Financial Modelling in Excel

19-21 Jun 2013 (Nairobi, Kenya)
18-20 Jun 2014 (Nairobi, Kenya)

Investment Management School

22-25 Jul 2013 (Lagos, Nigeria)

This 4-day intermediate programme equips investment professionals with practical knowhow of new approaches and new asset classes for today’s investment conditions.

Corporate Valuation - Techniques and Application

5-8 Aug 2013 (Nairobi, Kenya)

A comprehensive 4-day training course, featuring case studies across a range of industries to help course participants practice corporate valuation techniques.

IFRS Workshop: Including IFRS Technical Update

9-12 Sep 2013 (Lagos, Nigeria)

This 4-day intensive and hands-on raining workshop will provide delegates with a thorough understanding of IFRS reporting requirements.

Corporate Loan Workouts & Financial Restructuring

15-17 Oct 2013 (Lusaka, Zambia)

A 3-day financial training course on corporate loan restructuring. With tough liquidity conditions finance professional are required to quickly identify what is causing borrowers problems and provide the most appropriate and costeffective finance solution.

Mezzanine Finance

19-21 Aug 2013 (Johannesburg, South Africa)

A comprehensive 3- day course for all financial professionals in banking, corporate finance, strategic and financial advisory, consulting, M&A departments and private equity houses.

Back Office Management

3-6 Sep 2013 (Lagos, Nigeria)

Use a systematic approach to achieve a well controlled and cost effective back office by implementing the latest, leading internationally recognised, management techniques.

Internal Audit and Enterprise Risk Management

17-20 Jun 2013 (Nairobi, Kenya)

A 4-day course designed to teach delegates sound internal audit skills with respect to Enterprise Risk Management.

Enterprise Risk for Non-Executive Directors and Board Members

16-18 Sep 2013 (Lagos, Nigeria)

The aim of this 3-day program is to establish what the Board member should know about Enterprise Risk Management (ERM) and identify the actions the Board is now expected to take to ensure the survival of the organisation.

Strategic Bank Management

23-26 Sep 2013 (Johannesburg, South Africa)

This program covers how to design a successful corporate banking strategy and provide the adequate products and services to the different customers groups. It applies to banks in developed and emerging markets.

Advanced Financial Analysis, Multiples & Discounted Cash Flow

21-24 Oct 2013 (Johannesburg, South Africa)

This 4-day workshop takes a hands-on approach to financial analysis and cash flow techniques.

Private Equity and Venture Capital

23-25 Jul 2013 (Johannesburg, South Africa)

This 3-day course has been designed to provide the participants with a complete overview of the venture capital industry and its workings.

Finance for Non-Financial Managers

7-11 Oct 2013 (Lusaka, Zambia)

Finance for Non-Financial Managers is an intensive five-day course designed to provide non-financial managers and others with the knowledge and confidence required to comprehend and participate in financial decision-making and analysis.

International Financial Reporting Standards 8-Day School

9-18 Dec 2013 (Johannesburg, South Africa)

Over the course of eight days, delegates will gain a thorough knowledge of not only IFRS but also will have the opportunity to gain a deep knowledge in certain critical areas. This intensive and hands-on training workshop will provide delegates with a thorough understanding current topics.

Financial Modelling in Excel

12-14 Aug 2013 (Harare, Zimbabwe)

Investment Management School

11-14 Nov 2013 (Johannesburg, South Africa)

This 4-day intermediate programme equips investment professionals with practical knowhow of new approaches and new asset classes for today’s investment conditions.

Modern Corporate Governance

25-28 Nov 2013 (Nairobi, Kenya)

This 4-day financial training course deals with questions like – What is so special about corporate governance? How are banks regulated? and includes insights from international experience.

SME Banking Masterclass: How to build a modern SME business

16-19 Sep 2013 (Johannesburg, South Africa)

The course will use real life case studies and examples to develop delegates’ understanding of all aspects of SME banking, modern client relationship management and credit risk and risk issues. Participants will learn to apply the key principles of successful SME banking to different real life situations and adopt an action plan for their own institutions.

Improving Board Effectiveness

21-24 Oct 2013 (Johannesburg, South Africa)
22-25 Oct 2014 (Johannesburg, South Africa)

An advanced 4-day course that provides a vital overview to the role of the board in listed companies, banks and other financial institutions.

Interactive Bank Audit Workshop

24-27 Sep 2013 (Accra, Ghana)

An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.

Interactive Bank Audit Workshop

22-25 Sep 2014 (Dar es Salaam, Tanzania, United Republic of)

An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.

Interactive Bank Audit Workshop

22-25 Apr 2014 (Nairobi, Kenya)

An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.

Building Financial Models

7-9 Oct 2013 (Lagos, Nigeria)

This comprehensive 3-day workshop builds a financial analysis and valuation model through a series of practical stages.

Syndicated Lending Techniques

4-6 Aug 2014 (Accra, Ghana)

This practical and highly interactive 3-day financial training course, which incorporates numerous case studies, provides delegates with a thorough understanding of the syndicated loan market, its process and potential.

Executive Management School: CIO Workshop

26-29 Aug 2013 (Johannesburg, South Africa)

This course focuses on developing specific practical skills needed by CIOs.

Marketing Strategy in Banking

13-15 May 2014 (Johannesburg, South Africa)

This course unravels the complexity of the marketing strategy process across a number of forms of banking and in different contexts, demystifying the process and the tools of Marketing Strategy.

Marketing Strategy in Banking

23-25 Jun 2014 (Lagos, Nigeria)

This course unravels the complexity of the marketing strategy process across a number of forms of banking and in different contexts, demystifying the process and the tools of Marketing Strategy.

Marketing Strategy in Banking

28-30 Aug 2013 (Nairobi, Kenya)

This course unravels the complexity of the marketing strategy process across a number of forms of banking and in different contexts, demystifying the process and the tools of Marketing Strategy.

The Strategic Management of Human Resources

30 Sep 2013 - 3 Oct 2013 (Johannesburg, South Africa)

The course aims to help banks strengthen the coordination of their business and HR activities. It explores the world-class approaches of leading banks towards organising and managing their human resources, and how the delegates' Banks could emulate them to boost profitable growth.

Essential Leadership School

16-20 Sep 2013 (Lagos, Nigeria)

A highly intensive 5-day financial training course made up of five separately bookable 1-day modules: Essential Leadership, Relationship Management, Essential, Negotiation Skills, Essential Time Management, and Essential Business Writing.