The Banking and Corporate Finance Training Specialist

Business Case Modelling 2 Day Course

This course is presented in London on:

30-31 October, 17-18 May 2018, 29-30 November 2018

http://redcliffetraining.com enquiries@redcliffetraining.co.uk

+44 (0)20 7387 4484

Course Overview

The trainer has over 30 years’ experience in a wide range of roles in finance. He has delivered training courses on behalf of a number of international training companies since 2005.

For the past 18 years, he has worked as a specialist financial modeller, trainer and analyst

for a range of blue-chip clients, building financial models for major projects, structured financing, restructuring, outsourcing and PPP transactions in numerous sectors. He has

built, developed and used models to support commercial negotiations, analyse risk, test scenarios and forecast results.

The trainer has trained others in his specialism of financial modelling, running both in-house tailored courses for clients and public courses with major training companies all

around the world.

Modelling Style Introduction

Modelling style Systematic Design Method

Case study outline Required inputs and outcomes Risk factors

Model planning Review - Examples of poor modelling style

Best Practice Modelling

Best financial modelling practice

Importance of flexibility in the model Logic flow within the model Separation of inputs, calculations and outputs

Use of flags to control timing factors Use of switches to allow option selection

Keeping control of versions Use of corkscrews Making the model robust

Common mistakes Demonstrations of all of the above

Revenue and Costs

Operational revenue Volume drivers

Flags to control timings of changes Consistent coding techniques to enable flexibility Fixed and variable cost

Real and nominal considerations Dealing with inflation

Exercise – build a simple cash flow model with revenues, fixed and variable costs, flags and switches

Course Content

Background of the trainer

http://redcliffetraining.com enquiries@redcliffetraining.co.uk

+44 (0)20 7387 4484

Financial Structure Capital structure Debt and equity funding

Weighted average cost of capital (WACC) Fixed asset schedule

Depreciation calculations Debt amortisation calculations

Dealing with circular references Exercise – add a capital structure to the previous model, with debt and equity injections, interest costs, debt amortisation and constrained dividend payments

Adding Income Statement & Balance Sheet

Cash flow schedule Adding a basic income statement (profit and loss account) Basic balance sheet

Integrity checks Exercise – add a simple income statement and balance sheet to the previous

model Returns

Accounting returns Adding a terminal value

Project ratios – DSCR, LLCR Discounted cash flow measures: NPV, IRR, XNPV, XIRR Comparing projects to assess most attractive choice

Exercise – add accounting returns, project ratios and discounted cash flow measures to the previous model

Sensitivity Analysis Purpose of sensitivity analysis

Sensitivity analysis: o Goal seek

o Watch window o Data tables o Scenario manager

Exercise – add sensitivity analyses to the previous model

Executive Summary and Audit Model checks & robustness

Basic audit techniques Executive summary

Charts Shortcomings of Excel models Exercise – add an executive summary and charts to the previous model

Workshop Summary Workshop summary Key points

Future planning Workshop actions

http://redcliffetraining.com enquiries@redcliffetraining.co.uk

+44 (0)20 7387 4484

Business Case Modelling will allow users to improve the reliability, quality and construction of their Excel models. Financial modelling demands a logical consistent approach and this workshop builds a business case model through a series of practical stages.

Upon completion, attendees will have a comprehensive understanding of advanced

modelling, as well as how each technique can practically be applied through the use of Excel.

Course Objectives:

On completion of this highly practical, hands-on training course, attendees will: Be able to build a financial model from a blank sheet Be able to design models which minimise errors

Be able to write models which can be maintained and augmented in the future Be able to develop models with advanced techniques such as sensitivity analyses

Workshop Structure:

The workshop starts with a discussion of modelling techniques and methods. Each session reviews the next stage of the model in terms of the financial theory, modelling techniques

and potential difficulties and delegates build the model in stages. This is an intensive workshop and delegates will be spending the majority of the time on

practical model building tasks. With the help of the Course Director and through a proven step-by-step approach, delegates will leave this intensive two-day workshop with the

confidence and ability to apply advanced modelling techniques in Excel effectively. Workshop Methodology:

This programme will be delivered through a practical and interactive case study and worked examples, demonstrating how and why each technique is used. Emphasis is placed on the

delegates gaining practical, hands-on experience of the design and construction of financial models in Excel. Attendees will also benefit from formal lectures, demonstrations and group discussions. Comprehensive product notes and example models will be provided for future

reference.

Pre-requisite: Attendees need basic Excel skills to be able to participate fully in the modelling workshops. For example:

Opening and closing Excel files Excel screen menu and standard ribbon menus

Moving around a worksheet and between different worksheets in a file Creating files

Deleting files and individual sheets Changing column width and row height Entering simple formulas

Chart wizard Entering labels

Cell references Centering titles and merging cells Simple cell and number formatting

Changing font sizes and colours Copying, cutting and pasting cell contents

Course Summary

http://redcliffetraining.com enquiries@redcliffetraining.co.uk

+44 (0)20 7387 4484

Delivering this course in-house for you to a number of participants could be very cost effective.

Previewing worksheets

Printing documents and ranges

Basic Excel functions and the ability to insert functions: Basic Excel formulas – SUM, SUMIF, MAX, MIN Basic financial functions - NPV, IRR, PMT

Logic functions - IF, AND, OR

09:30-17:00

London

Standard Price: £1300 +VAT Membership Price: £1040 + VAT