DOCSLIB.ORG

M&A Due Diligence Workshop

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

M&A due diligence workshop 2017 Engineering and Construction Conference Introductions Bruce Gribens James “Mark” Andrews Partner | Managing Director M&A Transaction Services (Tax) M&A Transaction Services (IT) Direct: +1 415 783 5959 Direct: +1 215 789 2757 Email: [email protected] Email: [email protected] Location: San Francisco, CA Location: Philadelphia, PA Bryan Johnson Todd Wilson Senior Manager Managing Director M&A Transaction Services M&A Transaction Services Direct: +1 617 437 3657 Direct: +1 312 486 3892 Email: [email protected] Email: [email protected] Location: Boston, MA Location: Chicago, IL Rob Strahle Senior Manager Engineering & Capital Projects Direct: +1 212 436 7439 Email: [email protected] Location: Jersey City, NJ Copyright © 2017 Deloitte Development LLC. All rights reserved. 2 Agenda Topic Presenter(s) Timing Introductions All 5 minutes The M&A Lifecycle and Overview of Todd Wilson / Bruce Gribens 5 minutes Transaction Execution Importance of Integrated Due Diligence Mark Andrews / Bryan Johnson / 10 minutes Rob Strahle Functional Due Diligence Breakouts • Accounting, Finance, & Treasury • Todd Wilson and Bryan Johnson 25 minutes each • Tax • Bruce Gribens • IT • Mark Andrews • Project Due Diligence • Rob Strahle Copyright © 2017 Deloitte Development LLC. All rights reserved. 3 The M&A Lifecycle and Overview of Transaction Execution M&A Lifecycle Overview A multidisciplinary and integrated approach is key to success across the M&A lifecycle The M&A Lifecycle Pre-deal Pre-Announcement Post-Announcement Integration / Integration / M&A Strategy Target Screening Diligence & Evaluation Separation Planning Separation Execution • Establish a broad corporate • Define and prioritize acquisition • Conduct Financial / Accounting • Establish operating model and • Provide “Day 1” stabilization of the strategy and assess means to criteria to apply to entire and Tax diligence overall integration blueprint organization and functional realize that vision universe of potential targets • Perform business due • Organize controls such as capabilities • Review portfolio against value • Collect screening data from diligence, including integration management office • Execute and manage integration creation and strategic entire universe of potential commercial, operations, IT, and synergy / work thread plans imperative targets, and apply the and HR teams • Deploy all clean room analysis and • Assess and prepare for multiple, acquisition criteria to evaluate • Initial internal controls • Conduct clean room analysis to immediately execute on synergy potential acquisition pathways potential fit diligence front load synergy capture opportunities to achieve goals • Prioritize initial acquisition • Identify core and non-core • Develop Day One requirements • Define customer retention, • Identify, evaluate, and prioritize candidates and develop profiles portfolio assets and eventual and End State plans workforce transition, strategies for achieving organic • High level pre deal integration sale opportunities • Design customer, market, communication and growth plans and inorganic growth planning and initial diligence for • Negotiations execution product and organizational • Integration Execution Support synergy opportunities • Assess capability to undergo a including deal valuation, asset strategies • IP rights protection and strategic M&A program • Detailed screening of potential or target valuation and • Address people and culture management • Establish decision rights and targets on the basis of business structuring issues strategy, competitive strategy accountability within the • Refine integration planning on • Develop and execute a and value potential organization target communications strategy • Valuation of business entities, including financial modeling, approaches, and challenges Copyright © 2017 Deloitte Development LLC. All rights reserved. 5 Leading Practices Leading companies tightly integrate their upstream and downstream M&A processes Approach Execution M&A Target Due Transaction Integration Divestiture Strategy Screening Diligence Execution High Integration Curve Approach Risk Execution Required Risk Level of Handoff Risk Resources Transaction Curve Low Start M&A Lifecycle End Handoff Risk: Execution Risk: Approach Risk: Resources dedicated to integration are not Resources most knowledgeable with the Resources are focused on the transaction and added to the team early enough to sufficiently transaction do not remain on the team through not integration and its associated costs prepare the integration phase A holistic, integrated approach minimizes risks, gaps and handoffs and captures value Copyright © 2017 Deloitte Development LLC. All rights reserved. 6 Due Diligence A dynamic set of activities involving working with many unknowns identified via an iterative process & addressed when the acquirer takes eventual control of the target Typical Due Diligence Issues Value Drivers Improve/Validate • Early capture and realization of synergies from Products Valuation Model & Deal the M&A transaction Markets Structure Financial • Uncertainty around target management’s Customers claims on growth Capabilities Culture CommercialTax • Stability of customer base ROIC Improve Synergy Operations • Accelerating time to close Risk Due • Tax and accounting structuring Diligence IT Value drivers • Internal control structure, including Sarbanes Process Oxley compliance determine price TechnicalTax Develop Additional Negotiating Leverage • Effect of regulatory matters on a target and structure of Human Capital company’s industry the transaction and define the nature • Identification and quantification of tax and the scope of Risk Management exposures and optimization of related benefits Provide Feedback due diligence on Acquisition • Employee benefits, information technology Forensic / Investigative Agreements systems and risk management practices Services • Supply chain and manufacturing site inspection Legal • Benefit plan funding and liability exposures Legal Identify, Assess & Minimize Risk Our experience shows that it takes a well organized and executed, multidisciplinary approach to due diligence, focused on validating value proposition assumptions, understanding risks and providing actionable feedback Copyright © 2017 Deloitte Development LLC. All rights reserved. 7 Due Diligence Due Diligence objectives, activities and outputs can be segmented into three stages within the M&A lifecycle Phase I Phase II Phase III Phase IV Integration / Divestiture M&A Strategy Target Screening Due Diligence Transaction Execution Preliminary Due Diligence Detailed Due Diligence Final Due Diligence Objectives: • Identify business risks • Analyze data room and any relevant external • Obtain signed Definitive Agreements • Research scouting issues and contact target information • Reach favorable Close terms & final pricing • Make go/no-go decision • Feed negotiation, deal structure, valuation and • Organize for integration integration • Continuously improve due diligence process • Make go/no-go decision General • Identify core team and specialists • Identify due diligence teams • Collect any outstanding data Activities: • Collect external data • Hire outside experts • Analyze data • Review Offering Memorandum if applicable • Collect external data • Develop reps, warranties, deal structure • Analyze all relevant data • Prepare for site visits • Conduct final contract analysis • Develop business case • Conduct site visits & conduct analysis • Negotiate definitive agreements • Produce initial valuation • Refine valuation • Reach final terms • Seek management approval • Develop deal structure • Execute closing agreements • Seek management approval • Identify integration manager Outputs: • Preliminary valuation • Refined valuation • Completed deal structure/closing • Business case • Due diligence reports • Due diligence process review • Defined due diligence team and plan • Proposal for BOD/EMT • Integration plan • Initial term sheet (proactive process) • Preferred deal structure • Preliminary non-binding indication of • Submission of final bid/term sheet interest (auction process) Copyright © 2017 Deloitte Development LLC. All rights reserved. 8 The Importance of Integrated Due Diligence The Deal Team Lead Defines the Process and Manages the Transaction Lifecycle Project Oversight Roles and Responsibilities Executive Sponsor • Establish strategic objectives, priorities and project governance • Set direction for roadmap, and timing • Rapidly resolve escalated issues Project Management Office (PMO) • Understands business issues and impact to the transaction Dedicated PMO/Deal Team Leader • Coordinates activities and dependencies across work streams • Identifies and addresses resource needs/gaps Typical Areas of Focus • Resolves major issues and proactively manages risks Accounting and Commercial and Executive • Identifies major decisions and communications Financial Due Operational Alignment and Diligence Diligence Reporting • Interfaces with broader integration teams • Enables executive visibility through effective tracking and reporting mechanisms Human Resource Tax Diligence IT Diligence Diligence Transaction 360o Day 1 Readiness Support Communications Copyright © 2017 Deloitte Development LLC. All rights reserved. 10 Illustrative Functional Responsibilities Detailed Integration Planning & Execution Preliminary Due Diligence Due Diligence Deal Closing • Develop preliminary acquisition business • Finalize negotiated Definitive Agreement
Recommended publications
  • Due Diligence

    Due Diligence

    Getting to Know You: Due Diligence Cannabis Law Institute Lauren Rudick (Moderator) (Hiller, PC) Sept. 7-8, 2018 Matt Lapple (Lapple Ubell) Avis Bulbulyan (Siva) Andrea Hill (Skylaw) Daniel Straga (Venable) DUE DILIGENCE -- OVERVIEW • Due Diligence is the investigation of a person or business • Frequently used in M&A transactions, the process is used to gather information about the business that is for sale or raising capital • Information enables the buyer to: (i) negotiate price and other contractual provisions; or (ii) decide whether to abandon the transaction According to Black’s Law Dictionary, Due Diligence is: Such a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent man under the particular circumstances; not measured by any absolute standard, but depending on the relative facts of the special case. DUE DILIGENCE -- GOALS 1. Confirm title to assets and stock that are for sale 2. Investigate risks and liabilities 3. Confirm value of the target 4. Identify steps necessary to integrate the target business 5. Learn about the operations of the target business 6. Identify potential impediments to the transaction (i.e., corporate formalities) 7. Determine ancillary documents (e.g., disclosure schedules) DUE DILIGENCE – PRELIMINARY CONSIDERATIONS 1. Establish Budget 2. Assemble the Team: legal, accounting, business, and tax specialists 3. Determine Scope of Review - asset sale vs. stock sale - public vs. private - global considerations - need for confidentiality - time constraints - deal breakers - engage outside consultants - type of industry -Is the target in compliance with applicable regulations? THE INVESTIGATORY PROCESS -- CHECKLISTS Categories of Diligence (cannabis-specific): 1.
  • “Municipal Purposes”: the Return of Vires Litigation

    “Municipal Purposes”: the Return of Vires Litigation

    KEY POINTS Feature Thevires of a local authority in connection with commercial transactions remains a potential pitfall for commercial lenders. When entering into transactions with local authorities, commercial lenders will be well- LITIGATION advised to ensure that their due diligence includes consideration of the powers pursuant to which the local authority is purporting to act. Parties cannot rely on courts adopting a broad, purposive approach to construction of VIRES legislation granting local authorities the power to act. Ambiguity in such legislation may not be resolved in favour of an intra vires construction. Author Joseph Sullivan “Municipal purposes”: the return of vires litigation In this article, Joseph Sullivan considers a recent Privy Council decision which PRIVY COUNCIL serves as an important reminder of the need for pre-contractual checks as to local authorities’ vires before seeking financial assistance from them. Argument In the appeal before the Privy Council, MIF “MUNICIPAL PURPOSES”: THE RETURN OF OF RETURN THE PURPOSES”: “MUNICIPAL argued that the phrase “municipal purposes, INTRODUCTION on the guarantee. The Corporation refused being purposes of an extraordinary nature” In Mexico Infrastructure Finance payment, arguing that the guarantee was ultra must be given a broad construction. n LLC v The Corporation of Hamilton, vires and unenforceable. This defence was It submitted that: the Privy Council held, 3-2, that the grant allowed at first instance and in the Court of The phrase clearly envisaged activities by the Corporation of Hamilton of a Appeal for Bermuda. out of the ordinary run, since it referred guarantee to support borrowing by a private to purposes of an “extraordinary nature”, developer was ultra vires and, accordingly, THE POWER and it expressly required ministerial unenforceable.
  • Data Integrity in Financial Modeling

    Data Integrity in Financial Modeling

    Data Integrity in Financial Modeling By Eric Kolchinsky, NAIC Director, Structured Securities fundamental assumptions of statistics and how they can Group limit the usefulness of financial models. Next, we review the differences between the mortgage loan information used to Introduction analyze pre-crisis RMBS and the loans’ true characteristics. With the benefit of hindsight, we can see 2009 was the be- Lastly, we discuss how the SSG and the Valuation of Securi- ginning of a slow recovery from the nadir of the recent global ties (E) Task Force are working to ensure the appropriate financial crisis. However, as the mortgage-induced crisis con- use of financial models for structured securities purchased tinued, the NAIC took a brave and a radical step—no longer by insurance companies. were ratings to be used to set the capital for residential mort- gage-backed securities (RMBS). RMBS, along with collateral- “Garbage in, Garbage out” ized debt obligations (CDOs), were at the epicenter of the crisis and had leveled financial giants such as Bear Stearns, “Pray, Mr. Babbage, if you put into the machine wrong Lehman Brothers, Fannie Mae, Freddie Mac and AIG. figures, will the right answers come out?” —Question posed to Charles Babbage, the creator of The NAIC decided to directly engage analytical vendors who the first mechanical computer. would work under the direct supervision of the Securities Valuation Office (SVO). PIMCO was chosen as the vendor for It is a common failure of human nature to find purpose in RMBS and, the following year, BlackRock Solutions was cho- complexity, and financial models are not immune.
  • Sr. Financial Analyst/Underwriter Portfolio Management & Project

    Sr. Financial Analyst/Underwriter Portfolio Management & Project

    Job Opening November 10, 2014 JOB TITLE: Sr. Financial Analyst/Underwriter LOCATION: NYC DEPARTMENT: Portfolio Management & Project Finance BASIC FUNCTION: Conduct financial and credit analysis of commercial/real estate developments and operating companies to determine amount of State support required and to structure loans, grants, disposition of State assets and other subsidies accordingly. WORK PERFORMED: Review and analyze financial statements to determine the creditworthiness of all commercial loan originations. Obtain financial projections and create cash flow models for operating companies and real estate developments. Perform site visits and conduct interviews with counter parties. Perform risk assessment of credit and collateral ensuring loan stability and sound credit quality. Draft loan reports and present to the board for approval. Research, develop and implement programs that promote economic development. Create financial products which help fill funding gaps and the market. Develop revenue generating ideas such as loans, credit enhancements, etc. Provide high-level financial analysis assistance to various other departments, including real estate, venture capital and loans & grants, in addition to other governmental agencies. Critically analyze large-scale development projects throughout New York State and help structure potential loans, grants and other state subsides. Perform sensitivity analyses and initiate financial feasibility studies on complex business development proposals. Conduct site visits to borrowers and grantees for continued engagement and research. Cultivate relations with small/mid-size, regional banks, CDFIs, local development agencies and industry organizations and form partnerships to help businesses in New York State to grow and prosper. Attend various conferences and seminars to establish new contacts and discover new opportunities. EDUCATION & REQUIREMENTS: Education Level required: MBA in Finance or Real Estate desirable.
  • Due Diligence

    Due Diligence

    Due Diligence Sheppard Mullin has designed an innovative solution for its clients that are acquiring or selling businesses or providing debt or equity financing to companies. With its team of trained due diligence attorneys who leverage emerging technology, Sheppard Mullin can deliver high-level diligence-related services quickly, effectively and in a cost-efficient manner. Diligence Experience Our Diligence Team focuses full-time on providing diligence-related support on corporate and financing transactions. Because of this, they are skilled at reviewing and analyzing documents and agreements produced by target companies and can quickly prepare diligence memoranda, material issues lists and other client deliverables. The Diligence Team also frequently and proficiently oversees the document production and disclosure schedule preparation process on behalf of sellers, issuers and borrowers. Each time services are provided, the Diligence Team develops an institutional knowledge base that can be accessed for future deals by the same client or in the same industry. Sheppard Mullin’s deep bench of subject matter experts (such as tax, environmental, employment, real estate and intellectual property) join the Diligence Team as needed on transactions to appropriately advise clients. 24/7 Rapid Support The Diligence Team has the ability to ramp up a time-sensitive review in less than a day. While operating as a team, the attorneys proficiently divide up tasks based on their individual strengths and tap into their extensive collective experience to quickly prepare the desired work product. And because Diligence Team members are located in the firm’s offices in New York, Los Angeles, and San Diego, we are able to provide nationwide support across time zones, which is often critical in transactions with expedited timing and a large volume of documents.
  • Project Finance

    Project Finance

    Project finance From Wikipedia, the free encyclopedia Jump to: navigation, search Project finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Usually, a project financing structure involves a number of equity investors, known as sponsors, as well as a syndicate of banks that provide loans to the operation. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.[1] The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms. Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound. Project finance is often more complicated than alternative financing methods. Traditionally, project financing has been most commonly used in the mining, transportation, telecommunication and public utility industries. More recently, particularly in Europe, project financing principles have been applied to public infrastructure under public± private partnerships (PPP) or, in the UK, Private Finance Initiative (PFI) transactions.
  • Project Finance Course Outline

    Project Finance Course Outline

    PROJECT FINANCE COURSE OUTLINE Term: Spring 2009 (1st half-semester) Instructor: Adjunct Prof. Donald B. Reid Time: Office: KMEC 9-95, 212-759-5655 Classroom: Email: [email protected] Admin aide: Contact: [email protected] Background Project finance is used on a global basis to finance over $300 billion of capital- intensive projects annually in industries such as power, transportation, energy, chemicals, and mining. This increasingly critical, financial technique relies on non- recourse, risk-mitigated cash flows of a specific project, not the balance sheet or corporate guarantee of a sponsor, to support the funding, using a broad-based set of inter-disciplinary skills Not all projects can support project financing. Project finance is a specialized financial tool necessitating an in-depth understanding of markets, technology, sponsors, offtakers, contracts, operators, and financial structuring. It is important to understand the key elements that support a project financing and how an investor or lender can get comfortable with making a loan or investment. Several industries will be used to demonstrate project-financing principles, with emphasis on one of the most important, power. Objective of the Course The purpose of the course is to understand what project finance is, its necessary elements, why it is used, how it is used, its advantages and its disadvantages. At the end of the course, students should be able to identify projects that meet the essential criteria for a project financing and know how to create the structure for a basic project financing. The course will study the necessary elements critical to project financing to include product markets, technology, sponsors, operators, offtakers, environment, consultants, taxes and financial sources.
  • Defining Due Diligence?

    Defining Due Diligence?

    \\jciprod01\productn\H\HLI\53-2\HLI208.txt unknown Seq: 1 22-MAY-12 12:47 Volume 53, Number 2, Summer 2012 Lenahan (Gonzales) v. United States of America: Defining Due Diligence? Amy J. Sennett* Introduction The United Nations reports that the most common form of violence ex- perienced by women around the world is physical violence inflicted by an intimate partner.1 On a global average, at least one in three women is beaten, coerced into sex, or otherwise abused by an intimate partner in the course of her lifetime.2 Thus, it is all the more significant that in August 2011, the Inter-American Commission on Human Rights (“the Commis- sion”) found that the United States violated the human rights of Jessica Lenahan and her three daughters in the first domestic violence case brought against the United States in an international human rights tribunal.3 The Commission’s decision confirmed the application of the due diligence stan- dard to interpret the obligation of non-discrimination under the American Declaration on the Rights and Duties of Man. That obligation requires states to prevent, prosecute, and sanction acts of violence against women, including, in certain circumstances, acts of violence by private actors.4 The Commission found that the United States’ failure to meet this standard re- sulted in violations of Lenahan and her daughters’ right to equality, right to life, and right to special protection as women and children.5 The decision stands in stark contrast to the U.S. Supreme Court’s 2005 ruling on the same facts in Town of Castle Rock, Colo.
  • FINANCIAL MODELING, INTERVIEW PREP, and TECHNICAL SKILLS DEVELOPMENT 1 Bridging the Gap: Financial Modeling, Interview Prep, and Technical Skills Development

    FINANCIAL MODELING, INTERVIEW PREP, and TECHNICAL SKILLS DEVELOPMENT 1 Bridging the Gap: Financial Modeling, Interview Prep, and Technical Skills Development

    BRIDGING THE GAP: FINANCIAL MODELING, INTERVIEW PREP, AND TECHNICAL SKILLS DEVELOPMENT 1 Bridging the Gap: Financial Modeling, Interview Prep, and Technical Skills Development Training programs for post-secondary students seeking roles in business and corporate finance EXPERTS IN FINANCIAL MODELING TRAINING [email protected] · +1 416 583 1802 WWW.MARQUEEGROUP.CA BRIDGING THE GAP: FINANCIAL MODELING, INTERVIEW PREP, AND TECHNICAL SKILLS DEVELOPMENT 2 About The Marquee Group Our Clients We believe that spreadsheet- based financial models are For several years, Marquee has led the annual the most important tools in training programs at numerous investment modern finance. Using our banks, pension funds and commercial banks. framework and discipline We have taught thousands of professionals all to develop best-in-class, across Canada, the United States, the United user-friendly models, we Kingdom, Mexico, Australia and China. help students and finance The following table highlights some of our professionals turn their models major clients: into powerful communication tools that lead to better, more UNIVERSITIES effective decisions. Acadia University Saint Mary’s University Brandeis University U of T - Rotman The Marquee Group is the only Dalhousie - Rowe UBC dedicated financial modeling firm HEC Waterloo in Canada. For over a decade, our McGill - Desautels Western - Ivey business has delivered what has McMaster - DeGroote York - Schulich become the industry standard Queen’s - Smith in financial modeling, training, SOCIETIES FINANCIAL consulting
  • 9 Requirments of Due Diligence – Ezike

    9 Requirments of Due Diligence – Ezike

    THE NIGERIANJURIDICALREVIEW Vol.13 (2015) Articles Pages Terrorism,ArmedConflictandtheNigerianChild:LegalFramework forChildRightsEnforcementinNigeria ~DamilolaS.Olawuyi 1 ClearingtheHurdles:ATherapeuticExaminationoftheChallengesto theProtectionandEnforcementofEconomic,SocialandCulturalRights ~DamianU.Ajah&IjeamakaNnaji 25 InequitableTradeRulesinWorldTradeOrganisation(WTO): ImpactonDevelopingCountries ~ EmekaAdibe&ObinneObiefuna 57 PublicParticipationinEnvironmentalImpactAssessmentinNigeria: ProspectsandProblems ~ HakeemIjaiya 83 RethinkingtheBasisofCorporateCriminalLiabilityinNigeria ~ CalistusN.Iyidiobi 103 ElevatingConsumerRightstoHumanRights ~FestusO.Ukwueze 131 WhenaTrademarkBecomesaVictimofItsOwnSuccess: TheIronyoftheConceptofGenericide ~NkemItanyi 157 EnvironmentalConstitutionalisminNigeria: AreWeThereYet? ~TheodoreOkonkwo 175 RequirementsofDueDiligenceonCapacityofNigerianGovernment Officials/Organs/AgentstoContract- GodwinAzubuikev.Government OfEnuguState inFocus ~ Rev.Fr.Prof.E.O.Ezike 217 FACULTYOFLAW UNIVERSITYOFNIGERIA,ENUGUCAMPUS EDITORIAL BOARD General Editor Dr. Edith O. Nwosu, LL.B., LL.M., Ph.D., B.L Assistant Editor Dr. Chukwunweike A. Ogbuabor, LL.B., LL.M., Ph.D., B.L Statute and Case Note Editor Professor Ifeoma P. Enemo, LL.B., LL.M., Ph.D., B.L Book Review Editor John F. Olorunfemi, LL.B., LL.M., B.L Distribution Coordinator Damian U. Ajah, LL.B., LL.M., B.L EDITORIAL ADVISORY BOARD Professor Boniface O. Okere, Professor Obiora Chinedu Okafor Docteur d’Universite de Paris LL.B (Nig), LL.M, (Nig) LL.M, Professor,
  • Financial Modeling for Investments and Corporate Finance FIN 5115

    Financial Modeling for Investments and Corporate Finance FIN 5115

    Financial Modeling for Investments and Corporate Finance FIN 5115-701 Fall 2017 Instructor: Professor Bora Ozkan Office hours: WebEx Tuesdays 7:00 pm – 8:00 pm or by appointment Office Location: Alter Hall 438 Class Sessions: Alter 132 (6:00PM – 8:30PM): 9/14, 9/28, 10/12, 11/2, 11/16, 12/7 WebEx (6:05 – 8:35PM): 9/21, 10/5, 10/19, 11/9, 11/30, 12/14 Contact Information: [email protected] or office: 215-204-8409 Preferred Method of Contact: Email WebEx Link: foxsbm.webex.com Course Description: Financial modeling is building an abstract representation of the relationships among the variables of financial problems. This course presents the paradigms of finance through the use of state-of-art technology. Emphasis on spreadsheet programming develops an understanding of financial models and the ability to work with those models. The objective of this course is to learn equity valuation methods of a firm from a practical framework. Students should expect the workload for this course to be demanding therefore it is only recommended for those students who are interested in learning valuation techniques in depth. This course will tackle common financial problems -ranging from the simple NPV analysis to the relatively more complex Enterprise Value, and help the students gain the necessary competencies in building appropriate financial models for each case. The course covers a variety of modeling techniques, such as sensitivity and scenario analysis, optimization methods, and regression analysis. Although, students learn to use alternative financial models to analyze various decision-making opportunities, the aim is to get the students to the skill level where they can model and solve most financial problems they will face in the business world.
  • An Introduction to Financial and Economic Modeling for Utility Regulators

    An Introduction to Financial and Economic Modeling for Utility Regulators

    An Introduction to Financial and Economic Modeling for Utility Regulators Antonio Estache (World Bank and ECARES, Universite Libre de Bruxelles) Martín Rodríguez Pardina (CEER, Universidad Argentina de la Empresa and Macroenergía S.A.) José María Rodríguez (Universidad Nacional de Córdoba y Macroenergía S.A.) Germán Sember (Macroenergía S.A.) World Bank Policy Research Working Paper 3001, March 2003 The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org. The paper has benefited from discussions with Ian Alexander, Tony Gomez-Ibanez, Javier Campos, Claude Crampes, Severine Dinghem, Phil Gray, Luis Guasch, Clive Harris, Jean- Jacques Laffont, Paul Noumba, Jordan Schwartz, Gaétane Tracz and Lourdes Trujillo. It represents the views of its authors and any mistake is their responsibility. It does not represent the views of the institutions they are affiliated with. A companion CD-ROM is available from the World Bank Instittute. 1 Table of Content 1. Introduction............................................................................................................2 2. What Are Regulatory Models?...............................................................................3 3. The Demand for Analytical Regulatory Processes ................................................6 4. Matching Regulatory Objectives and Instruments...............................................10 4.1.