Financial & Valuation Modeling Boot Camp Oct. 30 – Nov. 1, 2013 TARGET AUDIENCE Overview □ IB Analysts & Associates 3-day intensive training program where trainees learn financial & valuation □ Equity research associates modeling in Excel using in a hands-on, case-study approach. The modeling methodologies covered include: □ Private equity associates Business development analysts □ Boot Camp Agenda Corporate finance analysts □ Day 1 Financial Statement Modeling and Excel Best Practices Accounting/Treasury/CFO □ Day 2 Valuation Overview and DCF Modeling professionals Day 3 M&A (Accretion/Dilution) Modeling MBAs □ Pre-recorded 8-hour video lectures of LBO Modeling Online 15-hour Trading & Transaction Comparables Modeling PREREQUISITES Financial Accounting Each day is independent; trainees can enroll in the full program or individual days. Excel – Beginner level Step-by-step, intuitive approach FORMAT Each modeling methodology is preceded by conceptual introductions that relate Full course – 3 days academic coursework to the hands-on step-by-step exercises trainees undertake on their computers in class. The program is a synthesis of Excel modeling, LBO modeling pre-recorded video navigating through various financial reports, and the application of accounting, lectures and online comparables corporate finance, and valuation courses. modeling training included What sets this program apart? CONTINUING ED CREDITS • The training materials that trainees receive are comprehensive and 27 CPE credits intuitive, and are designed to serve as stand-alone materials for easy use long after the training session has ended. 35 PD credits • Case study presentations and an end of program examination enable both participants and supervisors to assess individual performance. RATES & MORE INFO • Our instructors are all practitioners (investment bankers, equity research CFA Society of Minnesota Contact analysts, etc.) with a passion for teaching with years of directly relevant Amanda Houle real-world experience. They understand the importance of teaching in a 612-317-2889 way that empowers finance professionals to apply the lessons from the [email protected] classroom directly on the job. • Unlimited support for 2 years post-seminar • Issuance of Certification in Financial & Valuation Modeling Scott Humphries • 27 CPE credits and 35 PD credits 617-314-7685 x714 [email protected] Financial & Valuation Modeling Boot Camp Oct. 30 – Financial Statement Modeling TARGET AUDIENCE □ IB Analysts & Associates Summary □ Equity research associates Participants develop a model completely from scratch, inputting MORNING SESSION (8-11AM) Private equity associates □ historical data and assumptions to project out financial Introduction to financial modeling □ Business development analysts statements using step-by step instruction on selecting, locating, • Overview of financial modeling and developing appropriate projection drivers. At completion, Corporate finance analysts • Understanding projections □ participants will have developed a complete and comprehensive • Modeling techniques □ Accounting/Treasury/CFO three-statement model using various supporting schedules. • Excel best practices foundation professionals and exercises Interactive, Step-by-Step Learning Approach • Useful Excel shortcuts and MBAs □ Participants follow intuitive, step-by-step instruction manuals functions while building models using Excel model templates and are • Gathering historical PREREQUISITES directed to the appropriate external documents (SEC filings, documents/information research reports, etc.) in order to build comprehensive models Financial Accounting the way they would on the job. MIDDAY SESSION (11AM-3:30PM) Excel – Beginner level • Building the model , step-by- Key Learning Outcomes step • Building financial models from scratch the way it is • Setting up the core financial FORMAT done at financial institutions. statements Full course – 3 days • Excel and formatting best practices, efficient formula • Working capital, Depreciation & construction, and appropriate driver selections. amortization (PP&E), and Other LBO modeling pre-recorded video • Learn to use advanced Excel functions to present balance sheet items. lectures and online comps training various sensitivities to projected financial metrics. • Shareholders’ equity & Shares included • Balancing the balance sheet accounts, including Outstanding excess cash and revolver. • Debt & Interest • Fixing circularity problems, iteration, and other CONTINUING ED CREDITS common modeling troubleshooting. AFTERNOON SESSION (3:30-5PM) • • Improving the finished product 27 CPE credits Balance sheet / cash flow statement crosschecks. • Controlling circular references 35 PD credits using automated circuit breakers • Balancing the model • Scenario analysis RATES & MORE INFO • Creating forms in Excel CFA Society of Minnesota Contact Amanda Houle 612-317-2889 [email protected] Scott Humphries 617-314-7685 x714 [email protected] Financial & Valuation Modeling Boot Camp TARGET AUDIENCE Oct. 31 – Valuation Overview & DCF Modeling □ IB Analysts & Associates Equity research associates Summary □ Participants will learn the conceptual underpinnings of the Private equity associates MORNING SESSION (8-11AM) □ valuation framework followed by step-by-step training for building Overview of valuation modeling □ Business development analysts a professional, robust discounted cash flow (DCF) model in • Enterprise value vs. Equity value Excel from scratch, using real case studies, industry best □ Corporate finance analysts • Relative vs. Intrinsic value practices, and sensitivity analyses. • Calculating and interpreting Accounting/Treasury/CFO □ multiples (PE ratios, EBITDA professionals Key Learning Outcomes multiples, etc.) • Understand the important differences between enterprise • The “football field” □ MBAs and equity valuation, unlevered and levered free cash flow estimation, and intrinsic vs. market-based valuation AFTERNOON SESSION (11AM- PREREQUISITES • Learn proper treatment and adjustments for options, 5PM) preferred stock, minority interests, debt, cash and Financial Accounting Participants build a complete working marketable securities DCF model. Training encompasses Excel – Beginner level • Derive valuation ranges the following: • Build a professional, robust discounted cash flow (DCF) • From accounting profit to model in Excel levered and unlevered free cash FORMAT • Project levered & unlevered cash flows in Excel by flows—proper methodology and Full course – 3 days normalizing operating profits for calculating free cash flows best practices for projections in and avoid common mistakes. LBO modeling pre-recorded video Excel. • Project working capital items, deferred taxes, capital • Estimating the weighted average lectures and online comps training expenditures, and long-term accruals. cost of capital (WACC) and • Calculate the terminal value using both the exit multiple and included common pitfalls to avoid. the growth in perpetuity approach. • Applying the two major • Discount cash flows using a mid-year convention toggle. approaches to calculating CONTINUING ED CREDITS • Correctly calculate the discount rate by deriving the cost of terminal value debt, of equity, and of capital using CAPM. 27 CPE credits • Using data tables to analyze a • Understand the role of capital structure in determining beta, broad range of scenarios given 35 PD credits the cost of equity, and ultimately WACC. different assumptions • Learn how to delever and relever beta. • Model for and deal with the circularity inherent in the RATES & MORE INFO discount rate calculation. CFA Society of Minnesota Contact • Calculate shares outstanding using the treasury stock method. Amanda Houle • Utilize the enterprise value to determine implied share 612-317-2889 prices. [email protected] Scott Humphries 617-314-7685 x714 [email protected] Financial & Valuation Modeling Boot Camp TARGET AUDIENCE Nov. 1 – M&A (Accretion/Dilution) Modeling □ IB Analysts & Associates Equity research associates Summary □ Participants will build a merger model in Excel to reflect the pro □ Private equity associates forma impact of various acquisition scenarios. Topics covered MORNING SESSION (8-11AM) • M&A modeling overview □ Business development analysts include a quick test of accretion-dilution in all-stock deals, pricing structures (exchange ratios/collars/”walk-away” rights), purchase • Purchase accounting Corporate finance analysts □ accounting and the step-by-step allocation of purchase price. • Accretion/dilution overview and □ Accounting/Treasury/CFO exercise professionals Modeling exercises will address common pitfalls and status of • Common pricing structures changing accounting treatments, and typical adjustments □ MBAs required for arriving at pro forma financial projections. AFTERNOON SESSION (11AM-5PM) • Building the accretion/dilution model PREREQUISITES Key Learning Outcomes Building a robust merger model: • Sensitivity analysis using data Financial Accounting • Setting up a control area for assumptions tables Excel – Beginner level • Inputting deal assumptions (% cash vs. stock • Breakeven and contribution considerations, purchase premium, asset write-ups, analysis advisory fees, financing fees, and severance fees). • Tax and legal considerations FORMAT • Calculating shares outstanding using the treasury stock • Asset sale vs. stock sale • Indifference analysis Full course – 3 days • method • Appropriate treatment of convertible securities LBO