The trainer is a qualified chartered accountant, who spent several years in corporate finance post qualification. He then spent 18 years in the investment management industry as an analyst/fund manager with Threadneedle Asset Management, a director and head of UK Equities at Scottish Widows Investment Partnership as European, then Global Head of Equity Research at HSBC Asset Management. He ran various types of retail and wholesale funds and produced research on companies in Europe and on a global basis. He developed valuation and research processes and managed teams of European and global analysts and fund managers.
Since leaving the investment management industry the trainer has managed the investment management and investment banking operations of a UK based training company developing programmes for clients as diverse as HSBC, Morgan Stanley, Deutsche Bank, Citigroup, Allen & Overy, JP Morgan, Barclays Bank, Barclays Wealth, Morgan Stanley Investment Management and Schroders. He has managed major graduate programmes for investment banking and investment management clients, training graduate to managing director level participants and advising clients on their training requirements for accountancy, corporate finance and valuation, investment management and private wealth training.
Modelling – integrating financial statements: participants complete a partially-developed financial model for a public quoted company which integrates P&L, balance sheet and cash flow. This company will be the target company used in the merger analysis
Modelling – valuation: participants calculate the cost of capital and complete a DCF valuation for the target company, producing a stand-alone valuation as a cross check to the acquisition price
Modelling: delegates complete a variety of transaction models incorporating all types of corporate transaction and calculate the effect of a transaction on a set of consolidated accounts in preparation to perform a merger analysis with the target business and an acquirer
Case study: Participants calculate synergies for a case company
Case study: Calculating accretion/dilution and the effect of hybrids on cost of capital
Modelling – bringing it all together: participants complete a complex merger model for an acquisition of the target business incorporating synergy analysis and varying capital structure. The transaction is analysed on an accretion/dilution analysis and a wealth creation/return on capital analysis
Case Study I: Participants model the stand alone valuation of the target using historic data and equity research
Case Study II: Participants use the stand alone valuation of the target to complete and LBO model
Case Study III: Modelling the debt capacity of the target using multiple and credit analysis
Case Study IV: Modelling a more complex capital structure with various scenarios calculating exit value and IRR for each of the capital providers
Case Study V: Where has value been created, modelling APV analysis for an LBO transaction
On days one, two and three this modelling course covers the key elements of an acquisition or merger, from the initial stand-alone valuation of the target to the more complex accounting and modelling issues to be considered and finally analysing and assessing the value created by synergy benefits and leverage.
This corporate finance modelling course is run in an interactive, participative format, where participants learn by doing. The key concepts covered in the main teaching sessions are punctuated and illustrated by detailed case and modelling work.
The approach has been designed to equip participants to put key concepts into practical use immediately.
Participants will be led through a comprehensive review of analysis practices, from initial principles through to more advanced techniques that are used in transaction analysis.
As part of their work on this course participants model transactions based on real-life companies and scenarios.
On the last two days participants will cover the key elements of modelling in an LBO analysis. Participants will value the target business using historic data and available equity research. The valuation process will incorporate absolute and relative valuation techniques. Once the target business has been valued, participants will be introduced to LBO analysis and construct an LBO model.
The LBO modelling analysis will be developed by assessing the debt capacity of the business to determine the range of capital structures available for the transaction and how credit analysis is used in the LBO modelling process.
The participants will then cover more complex LBO instruments such as warrants and PIKs and how to calculate returns to each of the equity and debt providers.
Participants will model a more complex capital structure and calculate exit values and the IRRs generated by each investor. Using the integrated model participants will then analyse various scenarios (management case, base case, payout case) to derive the optimum financing structure taking into account the financial constraints of each investor.
The participants will undertake an adjusted present value (“APV”) analysis to determine where value has been created in the LBO transaction, using an APV model and finally look at recovery analysis for a failed LBO transaction.
Case Study: The participants will use a variety of case studies and exercises during the last two days, based on publicly quoted and generic businesses.
Participants will be required to bring a laptop and a calculator to the course.
Each participant should bring a laptop with USB port to the course to facilitate modelling work.
Corporate finance is one of the most popular sectors of the financial services. As such we offer a wide number of courses to help advance your career.
Corporate Finance Course
Training Course Area
|The M&A Course||Acquisition Integration, buying a company, discounting cash flow|
|The Debt Finance Training Course||asset based financing, Collateralised loan obligations, cashflow forecasting|
|Advanced Negotiation Issues in M&A||buy-side policies, completion accounts, Locked box|
|Private Company Sales in the U.S. and U.K.||English Law, FBAR Regs, Hart-Scott-Rodino|
|The Advanced Negotiation Issues in Financial Covenants Course||ADSCR, Capital Adequacy Directive, Debt-Service Coverage Ratio|