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. 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
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!
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?
The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
Customer ReviewsSent On: Apr 18, 2017 From:
My main goal was to learn financial modeling in detail. Unlike some one day courses that don’t allow you to go back and really understand what is going on, the online videos and course materials were excellent for really understanding the details of how a model works. I now feel confident undertaking models for anyone that asks.Sent On: Dec 21, 2016 From:
I am currently a senior in college pursing a summer analyst or full-time investment banking role. My main goal for buying the Premium Package was to gain technical knowledge so that I can stand out from the top competition. The instructor is very clear and explains the concepts in a way that is easy to follow and understand.Sent On: Dec 19, 2016 From: Michael Fritschner
I had very little real world experience modeling in Excel, but knowing that I will be using Excel on a daily basis this summer, I wanted to increase my knowledge of the software. This course has set me up for success during my corporate finance internship by deepening my understanding of finance, excel and how investment bankers communicate and think. With this knowledge, I have no doubt I will be able to achieve my professional goals.Sent On: Nov 30, 2016 From:
I have been working in the finance industry for four years. I want to move into investment banking or a valuation role for investment banking and that was my main goal for taking the premium training program. The material is structured in logical sequence in such a way that one concept leads nicely to the other and keeps things interesting. I love the Excel shortcuts and tricks that are taught along the way as well.Sent On: Oct 10, 2016 From:
My goal was to become more competitive, specifically to set myself apart from candidates applying to the same roles I was. I am currently in the first year of my MBA, the Premium Package helped me learn accounting and finance quickly and easily.
The course pace is perfect, starting off with “simple” modelling best practices before getting deep into the mud.Sent On: Oct 06, 2016 From:
I have a lot more confidence now in interviewing for jobs that require financial modelling skills. It will certainly help me move up the ranks together with the existing finance skills I possess.Sent On: Sep 19, 2016 From:
I first purchased the Premium Package due to the breadth of use of the program across respected firms in the finance industry. Not having an investment banking analyst background, this program was the perfect way to bridge the gap in technical skills I missed out on while working in corporate finance, especially because I knew my IB peers had received their training from Wall Street Prep.
I was able to use the Premium Package as a data point in multiple interviews to show why I was capable of switching from a corporate finance group to a portfolio management group within the same company. The interviewers were impressed with my initiative to grow my technical skill set, particular relating to the LBO knowledge within the Premium Package.Sent On: Sep 15, 2016 From:
I purchased the Premium Package to gain a deeper knowledge of advanced financial modeling and to learn how to build comprehensive models for valuations. I loved the step-by-step approach and the way the lessons were segmented. I now have a much deeper understanding of finance as a whole.Sent On: Sep 10, 2016 From:
The Premium Package lessons are clear, well-structured and I love the step by step progression. I found it very easy to understand.
Thanks to this training, I’m able to build my own models and perform better in my job. I also consider these skills necessary to make my way to a global IB or PE group.Sent On: Aug 30, 2016 From:
WSP stood out to me because of its reputation, professionalism and the material covered. The Premium Package is a great educational tool in all senses. It breaks apart from traditional education by giving hands-on, practical and well-taught material. After working through the program, I feel my knowledge and skill-base has drastically improved.Sent On: Aug 29, 2016 From:
I purchased the Premium Package to gain greater exposure and understanding of the modeling process. The material is broken down into manageable segments with supporting documents corresponding to each lesson. It was very easy to work through the material at my own pace. The skills I have gained will allow me to take on a broader range of projects as well as further develop my financial skills.Sent On: Aug 26, 2016 From:
I purchased the Premium Package to help prepare for the technical aspects of upcoming interviews. I really liked the short lectures, breaking it up into 10 to 20 minute blocks helped me to stay focused. I also liked how it constantly tracks how far you’ve gone through the course, that really helped me to feel like I was making progress.Sent On: Aug 25, 2016 From:
I purchased the Premium Package to get actual experience with modeling. I chose WSP after seeing how many companies have utilized WSP’s courses to help train their employees.
I liked that you can go at your own pace, starting with the basics and working your way up. I can now say that I have modeling skills and can articulate key modeling concepts.Sent On: Aug 22, 2016 From:
The Premium Package has helped me develop an advanced skill set on excel, sharpen my skills on FSM and expand into other more complicated models.
Having the videos at your own pace is great, it allows you to work at your own rate and fit the work into your schedule.Sent On: Aug 15, 2016 From:
I valued the flexibility of the online program as well as ability to control the pace. My MBA was very good about teaching the theoretical, but this course has been very helpful in teaching what is practical.Sent On: Aug 01, 2016 From:
The combination of theory and case studies was very good and helped me understand the content quite fast.
The tutorial videos are very useful during the learning experience. Working through the Premium Package has made be more confident in regards to upcoming interviews.Sent On: Jul 29, 2016 From:
I was searching for a self-paced course, with unlimited access to materials, with a concise and effective teaching method. I found that the materials were on point with a good mix of teaching and self-practice. Excellent support with any questions I had along the way.Sent On: Jul 27, 2016 From:
My main goal when buying the program was to develop the knowledge that I had acquired at McGill further, and learn how to perform valuation in a more professional way. I know that what I am learning right now through the Premium Package will be covered in my future interviews, and being comfortable with the various accounting and valuation concepts taught in the premium package is definitely required if you are looking for an internship or full-time position in investment banking.Sent On: Apr 25, 2016 From:
I am a senior in college preparing to start a full time job in investment banking. I bought the program to learn more about the practical side of finance and improve my modeling skills through an avenue that would give me the opportunity to practice modeling. The Premium Package is clear, orderly and allowed me to work at my own pace.Sent On: Apr 25, 2016 From:
The premium package is a great real life application compared to the CFA which is more academia based. I really enjoyed the fact that the advanced concepts were broken down into short videos.Sent On: Apr 20, 2016 From:
The Premium Package is a very professional course, and WSP is a much more recognized brand than anything else out there. The courses start off simple and move on to more intensive topics, and the certification at the end is a nice add on.Sent On: Apr 18, 2016 From:
I recently completed the 3rd level of the CFA program and was looking for a course that would blend financial theory with real world practice.
With leading banks using WSP as a part of their internal training, I was confident it would be a valuable, highly respected program. I am pleased with the blend of slides and hands-on spreadsheet modeling. The instructor is excellent at keeping the material compelling.Sent On: Apr 18, 2016 From:
After being in the workforce for 2.5 years, I am working on a career change to Investment banking or Corporate Finance. The video/excel combo that the Premium Package offers is great, it’s the perfect way to structure the courses. I’ve been extremely pleased with the program and find myself more knowledgeable about how to asses economic value/profit and create financial models.Sent On: Apr 18, 2016 From:
I couldn’t be happier with the Premium Package, I’ve learned so much and the support was fantastic. The structure is logical and extremely well taught. My goal was to learn how to model like the professionals and to help me break into the investment side of the industry from a research background.Sent On: Apr 11, 2016 From:
I am a corporate finance analyst at a Big Four firm and wanted to be able to face models with complex targets and to know specific topics such as deferred tax assets and liabilities, dilution of shares, LBOs, etc. I chose WSP because of the brand recognition and quality of videos. I found the course to be perfectly structuredSent On: Apr 07, 2016 From:
I graduated with a degree in engineering but wanted to transition into finance. I found the pre-prepared spreadsheets were great to work with and all the supplementary material in general was very well organized, allowing me to easily follow the lessons and learn financial modeling.Sent On: Mar 17, 2016 From:
The most effective part of the course in my opinion was how the different modules were structured. I appreciated how each individual video covered by and large only one topic and rarely lasted longer than 15 minutes. This made the topics appear much more digestible. I was ultimately able to get an internship in P.E. These videos helped give me the confidence I needed to get through my interviews.Sent On: Mar 15, 2016 From:
The material is communicated very concisely, there is no fluff or useless information, and I found that to be very helpful. Additionally, the presentation of the material is done in a very logical, step-by-step structure. I interviewed for an analyst position and the technical skills I learned from the WSP premium package proved invaluable during the interview. My interviewers were impressed, and I largely attribute that to studying the WSP premium package videos.Sent On: Feb 19, 2016 From:
The Premium Package allowed me to gain a better understanding of Excel modeling, M&A processes, investment banking, and the numerous topics covered in the webinars. It was a great experience because I am more of a hands-on learner as opposed to a classroom settings. I loved having the PDF files along with Excel templates to walk through the program at my own speed. I now consider myself an Excel guru and I absolutely love it!Sent On: Feb 19, 2016 From:
My main goal when I bought the Premium Package was to get a deeper understanding of the investment banking industry. This program allowed me to apply the finance and accounting basics I learned in college to real world and on the job scenarios. The premium package helped me increase my understanding of how basic finance and accounting principles are used on the job. It also helped increase my knowledge about the interview process, which was important for me in this stage of my career.Sent On: Feb 17, 2016 From:
The course is giving me a lot of insight into how to look at financial statements from an investment perspective and into the activities IBs do on the job.Since I come from a non-target school without a degree focused on finance, I believe I needed a deeper-than-average knowledge of financial modeling for an entry role.Sent On: Feb 15, 2016 From:
I liked the ability to be able to download/stream the step by step videos on the road, as I travel around various countries each week. The courses were structured seamlessly. The workflow that dipped into accounting theory and presentations was very well done, as it set the context before jumping into the meat of the model. I would recommend the Premium Package to anyone.Sent On: Dec 18, 2015 From:
I first went through a few free courses you offer, as well as some free courses offered through other providers. WSP courses are just easier to understand, don’t come across in a monotonous voice, and are completely video based, not just text-based.
The course structure is great, the breakdown of topics and the quick run-through on what’s happening before actually modeling helped solidify the material and drive in the factors happening behind the scenes. Having modeling experience is a definite plus and always looks good on a resume!Sent On: Dec 14, 2015 From:
I’m currently a junior at Northwestern and my main goal when I bought the Premium Package was to prepare for investment banking interviews and internships and to have an advantage over other interns.
I chose WSP based off recommendations from professionals in the industry and talking to other students who interned at investment banks. I really like the online instruction complemented by the PDF and the exercises —it is like a regular classroom setting and I really like that. So far, I feel much more prepared for interviews and feel capable of working out a couple models on my own.Load More Reviews All Reviews Loaded!X
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.