Corporate Finance Training Course
Our corporate finance training course will help you to better perform in your business and equip you with the necessary skills to succeed.
Day One
Session One
Making sense of financial reports and statements
When used correctly financial statements enable the reader to tell the financial story of
the business and to understand the financial outcomes resulting from the strategic
choices made and the level of operational performance delivered. In this session we will
look at how businesses report their financial performance. Key Issues and topics:
•Understanding of the financial statements
– Balance Sheet
Practical Exercise: Examination of the Balance Sheet
– Income Statement
Practical Exercise: Examination of the Income Statement
– Statement of Cash flows
Practical Exercise: Examination of the Cash Flow Statement
• Acknowledging the concepts and principles used in the preparation of the profit and
loss statements and balance sheets including accrual accounting basics
• Discussing how assets (including intangibles) are measured
• Understanding the relationship between cash flow and profit creation
• Identifying the complexities associated with asset, liability and equity measurement
• Mastering the financial terms
Session Two
Exploring the relationship between financial statements to tell the
financial story of the business
The financial statements are generally viewed as stand-alone documents. In this session
we will develop an integrated approach that allows managers to think holistically and
develop deeper insights into the messages contained in financial statements. Key Issues
and topics:
• How the Balance Sheet and the Income Statement connect to each other
• What is the relationship between the Income Statement and the Cash Flow
Statement
• How the Balance Sheet and the Cash Flow Statement connect to each other
• Building an integrated model for financial reporting
Session Three
Financial statement analysis
Managers are expected to understand with a wide array of business performance and
business stability measures. In this session we will examine measures commonly used in
management and discuss their respective strengths and weaknesses. Key Issues and
topics:
• Using financial data to evaluate business performance
– Return on Assets, Return on Equity, Earnings per Share
• Using financial data to evaluate financial stability
– Leverage, gearing, interest coverage
Session Four
Budgeting and financial forecasting
Cash flow problems are the ultimate cause of all business failures. Learn why
profitability cannot guarantee survival and how businesses avoid liquidity traps through
effective cash management. Key Issues and topics:
• Understanding why cash management is critical in an organisation
• Identifying financial warning signals
• Anticipating and avoiding budgeting pitfalls
• Planning and implementing financial budgets
• Preparing and managing cash flow forecasts
• Reporting and managing budget variance
Day Two
Session One
Estimating the cost of capital
The cost of capital is one of the dominant concepts in modern-day financial
management. Understanding the concept is essential to all managers and is
fundamental to fully understanding concepts such as value based management and
capital investment analysis. Key Issues and topics:
• Capital asset pricing model
– Market risk premium
– Cost of equity
– Beta value
• Weighted average cost of capital (WACC)
• Profit vs value measures
Session Two
A look at Value-based performance measures
Value-based management is part of the new wave of management practice and
understanding financial value and how it is measured is essential knowledge for
managers. We will look at techniques for measuring economic value added and also
market value added. Key Issues and topics:
• Economic Value Added (EVA©)
• Market Value Added (MVA©)
Session Three
Capital Investment decisions
Managers of firms search for and are frequently faced with opportunities to invest in real
assets. An explanation of how these opportunities should be assessed to maximise the
value of the firm is the primary objective of this session. Key Issues and topics:
• Payback period analysis
• Discounted cash flow methods
– Net Present Value
– Internal Rate of Return
• Making investment evaluation decisions on the basis of the NPV rule for independent
projects
• Dealing with sunk costs
• How to adjust for risk of projects
• Sensitivity analysis
• Appropriate use of hurdle rates
Session Four
Understanding the relationship between Cost, Price, Volume and Profit
Managers are often required to make decisions regarding pricing of products or services
and also how to ensure resources are being applied to the best range of product/service
offerings. In this session we learn how techniques such as activity based costing,
variable costing and full costing assist managers in decision-making. Key Issues and
topics:
• Full cost, variable cost and activity based costing models
• When to use different cost models
• Methodology of different cost models
• Strategy, cost and price relationships
• What to be aware of in cost-based decision making
• Using cost systems in making product range decisions
• Using cost systems in making product price decisions
• Costing models for the services sector
Day 3
Session one
It is important in today’s corporations that they have the correct capital structure to achieve strategic success. The value of a firm is defined to be the sum of the value of the firm’s debt and the firm’s equity. V = B + S. If the goal of the management of the firm is to make the firm as valuable as possible, the firm should pick the debt-equity ratio that makes the pie as big as possible. This session which explain the issues, capital market theory and best dividend policy.
What is capital Structure and the best mix to have
what is the best Dividend Policy to have
How does the Capital Market Theory work
Session two
Corporations today have a number of options to choose from in implementing strategy. One option is to look at Mergers and Acquisitions, it is important to understand why some M&A ‘s work and some do not. This session will explain what motivates such ventures and where to gain the best advantage.
Why consider Mergers & acquisitions:
What are the motives & best strategic fits
How do we make Valuations
How do we implement Defence tactics
Session three
Capital budgeting addresses the issue of strategic long-term investment decisions. It can be defined as the process of analyzing, evaluating, and deciding whether resources should be allocated to a project or not. Process of capital budgeting ensure optimal allocation of resources and helps management work towards the goal of shareholder wealth maximization. This session will outline how to optimize your options, improve cash flow and deal with financial distress.
What is Capital Budgeting and how can it help you
How to maximise your Cashflow Estimate
Arbitrage Pricing Theory
What can you do regarding Financial Distress
Session four
Every organisation has to deal with risk, how you effectively manage risk can the difference between surviving or becoming a real growing organisation with increased profits and cash flow.
How to maximise money from Risk Management
How to manage your Currency Risk management