Building banking relationships with corporates
Information
Selling financial services is more than offering existing products in a “tool bag” and / or offering the cheapest pricing. It requires a holistic view of a company and the influences on the financing decisions, a sound understanding of the financing alternatives and pro – actively suggesting solutions that meet the clients’ requirements as they evolve.
Objectives
Using a mixture of presentations, exercises and a structured review of one or two core case study companies this 2 day programme will assist participants build strong relationships with major corporate clients through asking key questions that are focussed on:
understanding clients’ strategic financing goals, the main business risks, and key performance indicators
Pro actively suggesting and developing financing solutions that meet the needs of corporate clients and financial sponsors for Private Equity transactions
Involving specialists on a timely basis
Being aware of re – financing opportunities
To obtain maximum benefit from this programme it will be assumed that participants will already have sound corporate credit analysis skills and be familiar with the features of the key banking, capital markets and derivative products, including the main Structured Debt Finance products. Whilst the programme is primarily focussed on debt products some existing knowledge of the key principles of corporate valuation will be of benefit to the participants.
Schedule
Day One
Session 1
Understanding a company’s strategic goals – what are the financing implications?
- What are the core activities of the company; where does it trade?
- What is its market position?
- What are its growth areas? What activities might be divested?
- Competitive position and dynamics of the industry sector
- What is the organisational structure of the company?
Session 2
Identifying and understanding the risks facing a company
- What are the key financial risks facing the company – how might this impact on banking requirements?
- What are the key costs in the business – can they be managed?
Session 3
How does a company and providers of capital assess financial performance?
- Accounting based measures: ROE, ROCE
- Other measures: CFROI, EVA,IRR and NPV
- How these measures link with Cost of Capital
Session 4
Analysing the debt structure
- What are the company’s objectives in terms of credit ratings – how would this affect the financing structure?
- What is the structure of the debt – maturity structure; currency composition
- Which entities in the company have debt financing needs?
- Is the company using a range of debt financing instruments? – loans vs bonds; use of Structured Finance
- Potential benefits / limitations of various debt products
- What covenant constraints does the company face?
- Secured vs. Unsecured Debt facilities
Day Two
Session 5
Equity perspective
- Debt vs. equity decisions – What is the anticipated development of the company’s financing needs and how will they be financed?
- Principles of corporate valuation
- Impact of leverage on projected corporate financial performance
Session 6
Off balance sheet exposures and risk management
- Does the company have off balance sheet liabilities and what are the associated risks?
- Exposure to pension fund and healthcare cost liabilities
- Use of derivative instruments – what is the company’s approach to management of currency, interest and commodity price exposures?
Session 7
Final case study
Participants prepare a presentation on their approach to the re – financing of a company
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.