Used widely at top investment banks and financial institutions, the Premium Package has everything you need to master financial and valuation modeling. Learn financial statement modeling, DCF, Trading and Transaction Comps, M&A and LBO.
What You'll Learn
Financial Statement Modeling
Financial Statement Modeling is the foundation of all subsequent valuation modeling modules. Trainees learn how to build full, dynamic financial statement projection models in Excel from scratch, using real case studies, industry best practices, and sensitivity analyses. Simple, intuitive, step-by-step instructions reinforce theoretical intuition while teaching the mechanics of the model building process.View AgendaCourse Agenda
- Learn to integrate assumptions and drivers into financial models
- Master Excel techniques and shortcuts for financial modeling
- Learn formatting and structural best practices
Projecting Financial Statements
- Build a fully dynamic and integrated three statement model
- Use equity research, management guidance and industry forecasting conventions to forecast the income statement, balance sheet and cash flow statement
- Normalize historical results to exclude non-recurring items and reconcile GAAP to Non-GAAP presentations of financials
- Build supporting balance sheet schedules using a consistent roll-forward approach: Working Capital, Deferred Taxes, PP&E /
- Depreciation, Intangible Assets, Retained Earnings , and Debt & Interest
- Learn best practices for check models for errors, accuracy and integrity
- Check and fix circular reference and iteration problems (#REF)
- Insert circularity toggles and learn other tools for formula auditing
- Customize Excel for effective modeling using macro shortcuts
- Balancing the model and inserting automated crosschecks
Presentation and Scenarios
- Perform sensitivity analysis using data tables
- Perform scenario analysis using data validation
- Integrating drop down menus and other “bells & whistles”
Build a complete, working discounted cash flow (DCF) model in Excel from scratch, using a real case study, industry best practices, and sensitivity analyses. DCF analysis is both academically respected and widely used on Wall Street as a primary method of valuation. Many finance interview questions specifically test a candidate’s understanding of both the academics and mechanics behind the DCF.View AgendaCourse Agenda
DCF modeling overview
Building on the knowledge gained from the financial statement modeling course, you will be introduced to valuation analysis in general, and the DCF model in particular. You will learn step-by-step DCF modeling, using the free cash flows already projected in the financial statement modeling case study.
Along the way, you will learn how to estimate the weighted average cost of capital (WACC) in the real world, and build several commonly used approaches to calculating terminal value. Finally, we will use data tables to analyze a broad range of scenarios given different assumptions.
Modeling free cash flows (FCF)
- Unlevered vs. levered FCF
- Capitalizing inappropriately classified expenses
- Handling working capital items, deferred taxes and long-term accruals
- Handling stub periods and midyear adjustments
- Integrating synergy assumptions into the DCF model
- Common pitfalls – enterprise vs. equity value, unlevered vs. levered FCF
Discounting the cash flows
- Deriving the cost of debt
- Derive the cost of equity using CAPM
- Estimating the weighted average cost of capital (WACC)
- Delevering and relvering beta
- Determining the optimal WACC
- Avoiding inconsistency between the FCF and discount rate
Estimating terminal value
- Perpetuity approach
- EBITDA multiple approach
- Common pitfalls
From enterprise value to equity value per share
- Calculating net debt and treatment of debt equivalents such as preferred stock, convertible securities , capital leases , and minority interest
- Calculating options and convertible securities using both the standard and treasury stock methods
- Using data tables to analyze a broad range of scenarios given different assumptions
Trading Comps Modeling
“Comps” analysis is the quickest, most widely used valuation methodology, and fundamental part of the core valuation skill set of investment bankers and finance professionals. In this course, trainees learn how to select and “scrub” comparables, pick the right multiples and build dynamic comps models in Excel from scratch, using real case studies, industry best practices, and sensitivity analyses.View AgendaCourse Agenda
Trading comparables overview
“Comps” analysis is the quickest, most widely used valuation methodology, and fundamental part of the core valuation skill set of investment bankers and finance professionals. In this course, trainees learn how to select and “scrub” comparables, pick the right multiples and build dynamic comps models in Excel from scratch, using real case studies, industry best practices, and sensitivity analyses.
- Learn to select appropriate comparable companies by evaluating operational, financial, size, and other similarities
- Set evaluation benchmarks & select comparable companies
- Gather appropriate financial history and projections
- Normalizing operating results and calculating LTM operating results to reflect nonrecurring charges and stock option expenses
- Standardize various expense classifications including FIFO to LIFO inventory accounting
- Calculate shares outstanding using the treasury stock method
- Input financial data & calculate and interpret financial and market ratios
- Presenting trading comps by structuring output schedule
- Selecting key valuation multiples using the VLOOKUP function and generating multiple tables
Transaction Comps Modeling
Transaction comps (aka deal or transaction comps) is a variant of comparables valuation. Value of the firm is derived by assessing the value of comparable companies recently acquired. In this step-by-step, real case study course, you’ll learn how to select comparable acquisitions, find important disclosures in filings, spread the data and build a complete transaction comps model in Excel.View AgendaCourse Agenda
Transaction comparables overview
Transaction comps (aka deal or transaction comps) is a variant of comparables valuation. Value of the firm is derived by assessing the value of comparable companies recently acquired. In this step-by-step, real case study course, you’ll learn how to select comparable acquisitions, find important disclosures in filings, spread the data and build a complete transaction comps model in Excel.
- You will learn to screen for comparable transactions using SIC and NAICS codes, source SEC filings and press releases
- Learn the pitfalls of relying exclusively on data services like CIQ, Factset, SNL, etc for deal data
- Once a comparable transaction universe is sleected, you will learn to find and gather appropriate financial details
- Scrubbing data is critical for comparability; you will learn best practices for standardizing information and selecting the most relevant multiples and calculating purchase premiums
- Best practices for incorporating synergy assumptions and appropriately calculating unaffected pre-deal share prices
- Build a full dynamic transaction comps output page
Accretion Dilution (M&A) Modeling
How do professionals at investment banks, private equity firms and other financial institutions analyze the impact of mergers & acquisitions? In this course, you’ll learn how to build a real M&A (accretion/dilution) model in Excel from scratch. In addition, you will build a contribution, synergy and exchange ratio analysis, and learn key M&A accounting concepts.View AgendaCourse Agenda
M&A Modeling Overview
Build an Accretion/Dilution (M&A) Model to reflect the pro forma impact of various Merger & Acquisition scenarios. Using a real case study, you will model out the acquisition of one company by another company, correctly incorporating pro forma balance sheet and income statement adjustments.
Key topics covered include a quick test of accretion / dilution in all-stock deals, pricing structures (exchange ratios/collars/”walk-away” rights), purchase accounting, and the step-by-step allocation of purchase price.
- Introduction to the M&A landscape
- Typical buy side and sell side processes and deal timelines
- A review of common deal structures
- Understanding acquisition accounting & purchase price allocation
- Understanding deferred taxes created and lost in M&A
- Dealing with convertible securities and options in M&A
- Performing a back-of-the-envelope accretion-dilution analysis
Accretion/Dilution and M&A modeling
- Building a complete accretion dilution model
- Forecasting pro forma financial statements, and learning to make correct adjusting entries for goodwill and fair market value write ups, advisory fees and financing fees and debt refinancing
- Calculating pre-tax synergies to break-even
- Sensitivity analysis using data tables to determine accretion/dilution to target shareholders in various stock/cash scenarios
- Error-check a merger model
- Sales, EBITDA, and ownership contribution analysis
Advanced topics in M&A
- Understand the asset vs. stock purchase decision
- Address situations in which amortization may be tax-deductible
- A discussion of 338(h)(10) election and wholly owned subsidiary acquisitions
- Legal considerations in M&A
LBO models are used widely by investment banks and private equity firms to assess investor returns as well as to value a business in the event of a buyout. You will build a real leveraged buyout (LBO) model from scratch, using real case studies, industry best practices, and sensitivity analyses.View AgendaCourse Agenda
LBO modeling overview
Leveraged buyout (LBO) modeling is used widely by investment banks and private equity firms and is often part of a finance interview. In this course, you will learn how to build a real, complex LBO model from scratch. You will start by learning about basic LBO concepts, typical deal structures, and current industry dynamics. You will then begin the step-by-step modeling, covering the most common and challenging issues that emerge when modeling buyouts. The course concludes with a sensitivity and scenario analysis, as well as how to build output tables that are key to any professional-grade LBO analysis.
Introduction to LBOs and recaps
- Understanding concepts: Working through an LBO on a cocktail napkin
- What is the current financing and valuation environment?
- What are key industry benchmarks?
- LBO capital structure: TLs, Bonds, Mezz, Preferred, Bridge Loans and Equity
LBO model development
- Setting up the initial valuation and general assumptions
- Calculating diluted shares
- Building the Sources & Uses schedule
- Build a heavy duty, yet flexible, sources & uses of funds schedule
- Make adjustments in one place – watch it flow error-free throughout entire model
- Line-by-line build-up and forecasting of the income statement and working capital schedules
- Modeling LBO debt
- Term loan A/B/C– Modeling mandatory amortization as well as cash sweeps
- Revolver – Automatic cash sweep, minimum cash balance, and maximum borrowing capacity
- Pricing matrix driven off LIBOR spot rates + spread
- Senior and Sub Notes – Modeling PIK vs Cash interest
- Preferred stock – Allowing for equity kickers
- LBO returns and exit analysis for all providers of capital:
- Sponsor equity and management rollover
- Lenders and preferreds
- LBO modeling best practices
- Circularity breaker and error trapping – no more DIV#0 and REF#!
- Building key sensitivities into model outputs
By the end, you will have mastered financial and valuation modeling and developed the core investment banking skill set that will give you a competitive edge in interviews and on the job.
The Premium Package is designed for students and professionals pursuing careers in investment banking, private equity, corporate finance and equity research. You will follow along with the instructor step by step and build real financial models in Excel from scratch using actual case studies, current methodologies and best practices. It will give you an in-depth understanding of financial statement modeling, DCF, Comps, M&A and LBO modeling. This program pulls no punches — it is the exact same comprehensive training program top investment banks and financial institutions use to prepare analysts and associates for the desk. Rest assured that by the end, you will have mastered financial and valuation modeling and developed the core investment banking skill set that will give you a competitive edge in interviews and on the job.
Wall Street Prep’s Premium Package is used at top financial institutions and business schools.
Financial Statement Model: Depreciation Waterfall
DCF: Unlevered Free Cash Flows
M&A: Modeling Pro Forma Adjustments
LBO: Reviewing Our LBO ModelWSP Course Manual
Financial Statement Modeling Course Manual Course NotesWSP Course Manual
Leveraged Buyout Modeling Course Notes
Financial Statement Modeling TemplateXLS
Accretion Dilution Modeling TemplateXLS
LBO Modeling TemplateXLS
Exam and Certification
Premium Package enrollment includes a 3-hour certification exam. You are eligible to take the exam for 24 months from the date of enrollment. Those who complete the exam and score above 70% will receive a Certification in Financial and Valuation Modeling. The exam is challenging and covers the most difficult concepts covered in the program. Learn More: Does Wall Street Prep’s Certification Matter?
Premium Package Highlights
Intuitive, Self-Paced and Comprehensive
Wall Street Prep’s Premium Package is intuitive and self-paced. You should expect to spend approximately 70-90 hours to complete it. Using a combination of videos, Excel model templates and financial reports, this course teaches students and professionals how to build, analyze, and interpret financial models in a step-by-step fashion at their own pace. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build comprehensive models the way they would on the job.
Real World “On the Job” Investment Banking Training
The Premium Package bridges the gap between academics and the real world to equip students with the practical financial skill set that they will need on the job. Our program will give you the confidence you need to ace your interviews and to get ahead in your IB career.
Upon enrollment, students gain free and unlimited access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates from a support staff comprised entirely of experienced former investment bankers
Private Online Tutoring (Additional Fee Applies)
Want a little extra attention? Live video-chat tutoring is available with experienced investment bankers for a fee of $199/hour. In addition, your tutoring sessions enable you and your tutor to share models, a virtual blackboard and any other files via an integrated web and phone platform that enhances the learning experience.
In light of the challenges facing prospective job candidates, Wall Street Prep recently launched a free, voluntary opt-in service to all its alumni and new students. Upon enrolling in the Premium Package, you will be given the option to upload your resume and cover letter to WSP.
Boost Add-In for Excel
Free Access to Boost, an all-in-one suite of time-saving tools designed for people who build financial models in Excel. Key features include: Attach common number formats to keyboard shortcuts and cycle rapidly through the different font and color schemes; Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool; And much more!
- Accounting: The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement). Students with no prior background in Accounting should enroll in the Accounting Crash Course.
- Corporate Finance: Although general exposure to corporate finance is helpful, it is not required.
- Excel: Basic introductory Excel knowledge is highly recommended. Students with limited or no experience using Excel should enroll in the Excel Crash Course.
The Wall Street Prep Quicklesson Series
7 Free Financial Modeling Lessons
Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.