Financial Modeling Excel Workshop

Marketing Partner

PROGRAM OBJECTIVE MS Excel ® is today unarguably the most commonly used spreadsheet utility globally to do finance. In spite of this, according to various surveys on Excel usage, a rather miniscule percentage of Excel Users use it to its full potential. The focus of the course is to help the participants learn the tools and capabilities of this spreadsheet application to perform from the simplest to the most complicated and elaborate financial analysis. Modelling for Corporate Finance Transaction  Case Outline and the process participants will go through in solving the case and structuring an LBO/MBO transaction

Acquirer input historical numbers and projected numbers/ assumptions.

Acquirer output: Income statement, balance sheet and cash flow

Acquirer DCF valuation output

How the LBO/MBO would be funded. How much debt needs to be raised

Sources of Funds: Financial Sponsors Management Different Tiers of debt

Structuring the Deal Evaluating Different Options

Motivations & Economics of deal for Debt/Hybrid/E quity Investors

The good thing about an over-engineered software like Excel is that it very well equiped to perform the most sophisticated and detailed financial analysis. The downside to this is that financial analysis workbooks are becoming increasingly bulky and unstructured. Many a times, they develop into unweildy, clumsy and difficult to manage models, with the user having no clue as to what’s going in the spreadsheet and if the results are accurate in the first place. Therefore, structuring good financial models is as much an art as a science. The important aspects this workshop focuses on is to apply the tools effectively while constructing financial models, caring for scalability, making them flexibile, structuring in such a way that auditing the model results is not cumbersome. These essential attributes make financial models accurate, flexible and user-friendly. The workshop would use a ‘learning by doing’ approach, because that’s how the science and art of financial modeling is learnt.

Results: We expect that the participants attending the course will be able to learn significant financial modeling capabilities using Excel that would be pertinent for corporate finance, financial analysis, risk management, transaction structuring like modeling for M&A, etc. The level of the course is Intermediate to advanced. KEY BENEFITS -

Master the use of Excel’s financial modelling tools and capabilities How to design a model to suit your purpose Understand the different types of financial models and when each should be applied Construct financial models making use of a broad range of Excel methods and techniques Accurate forecasting corporate cash flows for project finance deals and structures

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Incorporate elements such as risk, sensitivity, optimisation and forecasting into financial models Produce meaningful management reports and charts for communication How to identify and control key sensitivities through advanced spreadsheet simulation How to design a model to maximise flexibility and reliability Practical tips for checking and debugging the mode

PROGRAM FACULTY Our faculty is an experienced Investment Banker and a guest faculty in finance in IIMs, who specializes in Fixed Income, Foreign Exchange and Credit Derivative products. He has conducted training programs for banks and corporates in India, Singapore, Hong Kong, Middle East, and South Africa on topics such as Credit Derivatives, Fx Derivatives, FI Derivatives, ALM, M&A, Financial Modeling for LBOs, Debt Capital Markets, Basel II and Risk Management. WHO SHOULD ATTENTD       

Corporate Finance Professionals Quantitative analysts Investment Bankers Risk professionals Treasury managers Controllers Data analysts and economists

DAY ONE

Creating the first financial statement model in Excel to begin with (with an exercise and hands on practical session; focus on how to build a model right from the scratch, linkages with excel spread sheets, assumptions, use of past financial statements for the projections and building forecasted financial statements)

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Data Analysis Toolpak Important Excel Functions and commands for modeling  Conditional Formating  Online collaboration  Auditing  Protecting the workbook  Sharing the workbook  Data Validation  Handling external data  Sorting  Filters  Subtotals  Pivot Tables

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Statistical Data Analysis: trend analysis, regression, moving average Optimisation using  Goal Seek  Scenario Manager  Data Table: Row and Column input cell  Solver

Important issues for preparation and building of a financial model Excel Functions and commands to supercharge worksheets (most of the participants may be aware about the functions, yet just a quick revision and how these functions are used in financial modelling)  Different ways of summing and counting: SUMIF; SUMIFS; SUMPRODUCT; DSUM; DCOUNT; DCOUNTA; COUNTBLANK; COUNTIF; DMAX; DAVERAGE  IF (This Is True, Do This, Else Do This)  Lookup & reference: CHOOSE; OFFSET; INDEX; MATCH; HLOOKUP; VLOOKUP

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DAY ONE (Cont.) 

Scenario Building  Switches  Forms  Scenario building optimistic, base case and pessimistic assumptions

DAY TWO Topics in Finance                           

Principles of financial modelling—Accuracy, Flexibility & User-friendliness Defining Model objective Outlining model plan Spread sheet maps Flowchart and information flow Layout and architecture of financial model Setting up modules Identifying inputs and variables Defining deliverables and functionality Cataloguing outputs Stress testing Models Model Documentation Financial Statement modelling Projection of Revenues, COGS, SG&A and other Income Statement and Balance Sheet items Select model drivers and assumptions How to create an interlinked model for Income Statement and Balance Sheet How circularity improves accuracy but also destabilizes the model Building a fully integrated Cash Flow Statement Modelling need for financing in future time Analysing the output and cross-checking with surplus funds and necessary to finance Models for Debt repayment with prepayment option Modelling Amortizing & Accreting Loans Modelling Pay In Kind (PIK) securities Model for computing Beta Modelling un-levering and re-levering of betas Modelling term structure of Beta Model for WaCC with various debt-equity choices

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Modelling term structure of WaCC DCF valuation Relative valuation (PE, EBITDA multiple) Combining DCF and relative valuation models Modelling for Leveraged Buy Out & Management Buy Out Sources of funds for acquisition Modelling uses of funds Modelling ESOPs and Earn-Outs Partial and full dilution due to ESOPs IRR calculation for financial sponsor on fully diluted basis Purchase Accounting Model Model for Stock-for-Stock Deal Model for Cash-for-Stock Deal Modelling when M&A financed by issue of debt Model illustrating Accounting for a partial Acquisition Accretion Dilution Model Deal Structure: Cash, Fixed-Value Stock Offer, FixedShares Stock Offer

Registration form Yes, please register me for : Financial Modeling With Excel

Fees

Rs 13,000/

8th & 9th December, 2010 - New Delhi 15th & 16th December, 2010 - Mumbai

*(Service Tax Applicable)

1.Email [email protected]

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2.Telephone +91 9094532918 +91 44-45018472

3.Fill this and post OptiRisk Learning Systems (P) Ltd. L468, Ground Floor, 21st Cross Street, Thiruvalluvar Nagar, Thiruvanmiyur, Chennai - 600041

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Booking terms and conditions exclusive jurisdiction of whose court the parties hereby agree to submit. The registration fee for the event covers the following : Attendance, copy of documentation, lunches and light refreshments. Accommodation is not included. Detailed delegate information will be sent to you approximately two weeks before the event. Payment is required in advance of the event, or at the latest, paid at the event. Payment may be made by par cheque or demand draft if favour of “OPTIRISK LEARNING SYSTEM (P) Ltd.” payable at Chennai.

The organizers reserve the right to amend the programme if necessary. INDEMNITY : Should for any reason outside the control of OptiRisk Learning Systems (P) ltd (hereafter called OptiRisk), the venue or the speakers change, or the event be cancelled due to industrial action, adverse weather conditions, or an act of terrorism, OptiRisk will endeavour to reschedule, but the client hereby indemnifies and holds OptiRisk harmless from and against any and all costs, damages and expenses, including attorneys fees, which are incurred by the client. The construction validity and performance of this Agreement shall be governed by all aspect by the laws of India to the

 Confirm your CANCELLATION in writing up to 15 working days before the event and receive a refund less a 10% service charge. Regrettably, no refunds can be made for cancellations received less than 15 working days prior to the event. However, SUBSTITUTIONS are welcome at any time.