New York City

Financial and Valuation Modeling|New York City

This boot camp is an intensive instructor-led training program where trainees learn financial and valuation modeling in Excel using an intuitive, step-by-step approach. Participants will use real case studies to build financial models from scratch the way it is done at financial institutions. The program is a synthesis of Excel modeling, navigating through various financial reports, and the application of accounting, corporate finance, and valuation courses.

Schedule

Each day begins at 8am and ends at 5pm with a 1-hour lunch break as well as a midmorning and midafternoon break.

What’s Included?

Comprehensive training materials (manuals and online exercises), Detailed reusable modifiable Excel model templates, Unlimited e-mail support for content-related questions for 12 months post-seminar.

What to Bring

Laptop, Notepad, and Calculator.

Prerequisites

This seminar presumes knowledge of financial accounting (at least 1 semester or equivalent). Participants without this background must enroll in and complete the Accounting Crash Course prior to attending the seminar.

CPE Credit

Wall Street Prep is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

Cancellation Policy

Participants may cancel up to 3 weeks prior to the event for a full refund. A 20% cancellation fee will apply up to 1 week prior to the event. No refunds will be granted for cancellations made within 1 week of the event. Wall Street Prep reserves the right to cancel the seminar if enrollment is insufficient. Trainees will be refunded in full in the event of a cancellation.

Review key Excel skills for financial modeling

• Basic Excel techniques and keyboard shortcuts
• The most accurate way to perform Excel’s basic functions without the mouse
• Customize Excel’s default settings for effective modeling

Learn to format and structure financial models to limit errors and simplify auditing

• Standard modeling structures and formulas
• Best practices in modeling
• Learn the correct way to check models for errors, accuracy and integrity
• Check and fix circular reference and iteration problems (#REF)
• Tools for formula checking and auditing

Learn how to present financial statement model

• Create a ratios page
• Prepare a model for distribution
• Learn summary and sensitivity analysis using data tables

Financial statement model development

• Learn to build projection drivers
• Learn to integrate assumptions into financial models – learn what makes a good assumption
• Build core statements:
  • Cash flow statement
  • Balance sheet
  • Income statement
• Build supporting schedules:
  • Debt schedule
  • Working capital
  • Interest schedule
  • Retained earnings
  • PP&E analysis
• Understand the interconnectivity of the core financial statements and learn how the cash flow statement, income statement, and balance sheet are linked.
• Learn to apply automatic “balance checks”
• Understand treatment of non-recurring charges and  tax implications on financial models
• Understand implications of new FASB regulations on financial models used by investment banks and other financial institutions.

Valuation methodologies deconstructed

• Learn market-based valuation, including comparable company analysis and comparable transaction analysis using appropriate equity and enterprise value multiples (PE, EV/EBITDA, etc.)
• Intrinsic valuation, including DCF and LBO (floor) valuation
• Presentation of valuation results using sensitivity analysis and data tables

Enterprise value relationships

• Participants learn to identify and analyze the elements of the financial statement that are key to the value of an enterprise, including:
  • Market capitalization
  • Enterprise value
  • Options
  • Preferred stock
  • Minority interests
  • Debt
  • Cash and marketable securities
  • Treasury Stock Method of Calculating Diluted Shares Outstanding

Calculate free cash flows using the unlevered valuation approach

• Use previously built model to derive unlevered earnings and unlevered free cash flow
• Handle working capital items, deferred taxes and long-term accruals 

Discount the cash flows

• Learn how to derive a discount rate by deriving the cost of debt and the cost of equity
• Derive the cost of capital using CAPM
• Select the correct discount rates

Calculate the value

• Estimating terminal value
• Calculating enterprise value
• Using the enterprise value to determine implied share prices

Sensitivity analysis

• Analyze key input assumptions at various sensitivities

Building a robust merger model

• Setting up a control area for assumptions
• Inputting deal assumptions (% cash vs. stock considerations, purchase premium, asset write-ups, advisory fees, financing fees, and severance fees)
• Calculating shares outstanding using the treasury stock method
• Appropriate treatment of convertible securities
• Allocating purchase price and calculating goodwill
• Preparing the pushed-down balance sheet
• Making pro forma balance sheet adjustments
• Calculating sources & uses of funds
• Inputting operating & synergy projections
• Calculating the stub year period
• Building a pro forma income statement and making appropriate deal-related adjustments to arrive at accretion/dilution per share
• Error-checking a merger model and inserting circuit breaker switches where appropriate
• Sensitivity analysis: EPS accretion/dilution in stock vs. cash deal; interest rate assumptions, premium paid
• Pre-tax synergies required to break-even, and break-even PE analysis
• Revenue, EBITDA, and Net Income contribution analysis

Advanced merger accounting

• Understanding the differences between asset sales (including 338h10 elections) and stock sales
• Taxation issues, including deferred taxes created by the step-up of asset values
• Legal considerations in acquisitions