Course Objectives
This is a comprehensive 3 day workshop to teach delegates how to design and build superior financial models.

We listen to our clients and develop quantitative workshops which are informative and add real value. All our workshops are 'hands-on' with theory and demonstrations followed by 'leaning by doing'. This ensures that we provide real-world methods and internationally recognised techniques that can be successfully implemented immediately after the workshops.

Day 1 - Introduction and M&A Model

Module 1: Introduction

Overview of the course
Problems associated with mergers and acquisitions
Attributes of successful acquisitions
Types of deals
Deal time line and stages of an acquisition

Module 2: Model Design Best Practice

Starting position
Model layout and design
Spreadsheet design best practice
Design standard
Model building steps
Practical: producing a model framework using best practice

Module 3: Accounting Methods and Theory

Description of purchase and pooling accounting methods
Worked example
Practical: completing operating statements

Module 4: Ratio Analysis

Financing the acquisition
Risk matrix
Practical: Completing template

Day Two - M&A Model

Module 5: Synergy and Sensitivity

Integration and success factors
Types of synergies
Revenue, cost and financial
Practical: calculating required synergies

Module 6 :LBO Modelling Issues

Terminology
Background
Motivation
Value enhancement
Practical: reviewing examples

Module 7: Modelling Assumptions

Modelling process
Review existing statements
Forecast financial and cash flow
Cost of capital and terminal value
Practical valuation model

Module 8: Modelling Financial Statements

Outline of case study
Financing structures
Cash flow
Debt repayments
Model completion - cash flow and capital structure

Day 3 - Returns and Sensitivity

Module 9: Cost of Capital and Terminal Value

Free cash flows
Capital Asset Pricing Model (CAPM)
Cost of debt
Weighted average cost of capital
Terminal methods
EV / EBITDA multiples
Model completion - cost of capital, terminal value and initial valuation

Module 10: Adjusting for Management Incentives

Value enhancing measures
Incentives
Financial covenants
Model completion - cover ratios, decision factors
Acceptability of result against cover ratios and key multiples
Practical: adjusting for covenants

Module 11: Testing Assumptions

Testing model assumptions
Sensitivity analysis
Scenarios
Goal Seek and Solver techniques
Practical: Adding sensitivity and scenarios

Module 12: Model Summary and Presentation

Management summary
Dynamic charts
Presenting key findings
User feedback
Version control