Financial Modelling for Private Equity

Transcription

1 Financial Modelling for Private Equity 2-Day Executive Education Training Programme Hong Kong: October 2013 To Register visit or call

2 Financial Modelling for Private Equity: 2-Day Executive Education Training Programme Programme Overview Financial Modelling for Private Equity -This Financial Modelling & Structuring seminar will teach the mechanics of modelling and will attempt to equip participants with general framework and cookie cutter tools to help them perform various practical financial modelling & structuring tasks as done in most investment banks. The course is designed to make participants think about the detail of creating a financial model and learn about the different types of models used for different purposes. The course will provide a comprehensive picture on why modelling is hopeless without clear structuring and vice verse. The programmeformat comprises of limited lecture material aimed at providing guidelines and useful tips, individual assignments and class discussions. Class sessions will be complemented by four individual assignments set around various modellingtasks in Excel (see outline below). Group work on assignments is neither encouraged nor discouraged it is up to you to select the best learning method for yourself. This programme is ideal for investment banking, Private Equity and corporate finance junior professionals, as well as those involved in financial advisory in general. Course Director Aleksander Grzeszczak AleksanderGrzeszczakhas for the past 10 years been a senior advisor to Value Discovery Partners (VDP), a major private equity investment fund focused on emerging markets, particularly on South Eastern Europe. Alek has executed a number of acquisitions in the region and is currently responsible for restructuring of the operating companies, executing business plans, acquiring and selling assets. Prior to VDP, Alek was a Vice President in the Telecom Investment Banking group of Salomon Smith Barney (now Citigroup Corporate & Investment Bank), where he spent 5 years, first in the New York office and later in London. In that role, he executed a number of advisory, M&A, equity and debt financing transactions for SSB samerican and European clients. Alek is a finance faculty member at Judge Business School, Cambridge University. He is a graduate of Columbia Business School, where he received a joint MBA (finance) /MIA (international business) degree. He also holds a M.Sc. degree in Telecom and Electrical Engineering from the University of Ottawa, Canada. 1

3 Financial Modelling for Private Equity: 2-Day Executive Education Training Programme This course is aimed at: Private equity professionals Corporate M&A teams Corporate managers Finance managers Bankers and corporate financiers Accountants Consultants Key Learning Outcomes: The course is intended to deliver a general and practical investment banking modeling skill-set that can be applied immediately in the workplace. Attendees of this 2-day course will gain an understanding of: How financial models are built in general How a fully revolving financial model is built from scratch How DCF Valuation, Leveraged Buyout (LBO) and M&A models are designed and built Pre-Requisites: The course requires a reasonable knowledge of accounting, basics of corporate finance, and basics of excel. Note This programme requires you to bring your own laptop loaded with Excel spreadsheet software In-House Training Solutions Need a bespoke training solution for your team? If you have a large team that needs training, an in-house training solution may be right for you. We can run this training programme or a more bespoke course designed especially for the needs for your team. A programme can be run on dates convenient to you, at a venue of your choice, such asat your offices and could even prove to be more cost-effective. Programmes can be delivered in a face-to-face classroom-based setting and can also be combined with live online follow-on sessions. To find out if an in-house solution is right for you, please contact : Kapriel Kasbarian Director kkasbarian@ascentium-associates.com 1

4 Course Outline Day 1 Topics Introduction to financial modelling Establishing objectives Defining building blocks Good house keeping rules Business Projections, Building Financial Statements, Tracing Cash Flows Business forecasting Pro forma statements Cash flow analysis Funding gap calculation Circularity equations: I/S to B/S, I/S to C/F, B/S to C/F Introduction to Operating Models Modelling framework Choices of operating models Examples of top down and hybrid models Concluding remarks Introduction to Financial Models Key principals Common pitfalls Four boxes of cashflowparadigm Comprehensive standalone financial model Circularity equations revisited Mapping cash and cashflow circularity Setting tasks for Individual Assignment #1 Individual Assignment #1 Financial Statements Model Does my balance sheet balance? Review of Individual Assignment #1 Discounted Cash Flow (DCF) Modelling (I) DCF Introduction Net present value & IRRs Inputs and computations Forecasting cashflows Calculating free cashflows Discount rate (WACC) Terminal value Outputs and clever tweaks Free cashflows to firm Free cashflows to equity A few words on Firm Value Pros & cons Setting tasks for Individual Assignment #2 Individual Assignment #2 DCF Model Getting mechanics right Discounted Cash Flow (DCF) Modeling(II) We review the common pitfalls related to modelling DCF. We will go backwards and forwards through a fully working model. We also discuss the issue of calculating pro formas in our modelling analysis. DCF Pitfalls Levered & unlevered Mid-year convention Matching exit multiple to growth rate Dilution & options calculations Review of Individual Assignment #2 Capital raising exercises Concept of financial pro forma-s Standard formats for presenting IPO and debt issuance transaction 4

5 Course Outline Day 2 Topics M&A -Structuring & Modelling Considerations for Mergers What are merger models for? Definitions of M&A M&A Considerations Generic vs. specific approach to modelling mergers Inputs and modelling tasks Merger analysis tools Contribution Analysis Sensitivity tools Setting tasks for Individual Assignment #3 Individual Assignment #3 Merger Model Do we have a deal? Review of Individual Assignment #3 Debt financing models Credit view of the world vs. equity story or show me the money What to look for when dealing with debt elements of a deal LBO (Leveraged Buyouts) models Why LBOs? Buy out view of the world vs. public equity Basic inputs and modelling formats of an LBO model Debt capacity factors & structural issues (ex. Subordination) Structural enhancements (Derivative Structures; Senior Convertible; Seller Note) Relative value analysis Incorporating credit analysis into an LBO model Roll-over equity and a few other optical matters Setting tasks for Individual Assignment #4 Individual Assignment #4 LBO Model Half a turn cheaper and we do a deal What? Review of Individual Assignment #4 Distress Models Framework for corporate work-out models Modelling examples in work-outs Big and mighty final Q&A 5

6 Registration Form Financial Modelling for Private Equity: Hong Kong October, 2013 Delegate Details Delegate1:Mr/Ms/Mrs/Dr..Firstname. LastName.... Jobtitle. address... Delegate2:Mr/Ms/Mrs/Dr..Firstname. LastName. Jobtitle. address... Delegate3:Mr/Ms/Mrs/Dr..Firstname. LastName. Jobtitle. address. Toregistermoredelegates,pleasecalluson OrganisationName:.MembershipNo.(ifapplicable)... Address..City.. Post/ZipCode.Country.Tel Pricing Choices Book by Wednesday 31 st July to receive the Super Earlybirdprices. Book by Friday 13 th September to receive the Earlybird prices. Note: New members receive a 50% saving on the non-member rates for their first booking. Visit to find out more about applying for annual membership. Please tick the appropriate box: Super Member Rates Super Non-Member Rates Earlybird Rate Earlybird Rate Normal Rate Earlybird Rate Earlybird Rate Normal Rate 1 Delegate 2 Delegates 3 Delegates 1,085 1,953 2,929 Payment Details 1,220 2,197 3,295 1,356 2,441 3,661 1,356 2,441 3,661 1,526 2,746 4,119 1,695 3,051 4,577 We accept payment with American Express, Mastercard, Visa or by invoice/direct wire transfer. Payment in full must be received in advance of the programme. Registrations received fifteen (15) daysorlessbeforeacoursecommences,thenthepaymentmustbeviacreditcard. Please tick method of payment: Please to me an invoice Credit Card Payment -American Express/Mastercard/Visa FullNameasitappearsonCreditCard. CreditCardNumber.ExpiryDate SecurityCode.. IhavereadandagreewiththeTerms&Conditions*-Signed... *For Terms& Conditions, please visit Please scan and your completed registration form to info@ascentium-associates.com Alternatively register online at or call

7 About Us Ascentium Associates -We are a specialist training provider, focused on the private equity, real estate and infrastructure/project finance sectors. Our industry course programmes are delivered by highly experienced practitioners enabling you to learn from seasoned veterans. We are passionate and focussed on your training and development needs and offer many strong reasons as to why you should consider training with us: Faculty Expertise Our faculty of experienced practitioner trainers, makes us different from other providers. We have a dedicated section on our website so that you explore the expertise that we can offer. Small Class Sizes Our courses are small groups (usually between 8-15 people) and are highly interactive. This allows for a lot of scope to ask questions and join in discussions. Attendees are encouraged to actively join in, contributing with their own experiences and also challenge and learn from each other. Individual and group exercises are designed to get people thinking about, reinforcing and applying their learnings. Learning with your peers Our programmes are primarily aimed for industry participants, so you can expect to be training alongside an engaging peer group. Alumni group In addition to the peers you will meet, we also have an alumni group for you to network with. Quality venues We always use easy to get to venues that are centrally located and which provide the right balance of comfort and technology to facilitate your learning experience. Post course discussion forums The forums on our website provide a platform to continue discussions and conversations with fellow attendees. Feedback Programme feedback is very important to us, both during and after a programme and forms a basis for ongoing continuous improvement. In-house training In addition to our scheduled programmes we also offer bespoke programmes offering expertise, convenience and cost effectiveness. Track record Our team of professionals have many years experience of planning, designing and delivering training programmes. Quality Programme Materials and Certificate of Completion All programme attendees will receive the programme content and a certificate of completion. We look forward to working with you. Best Regards, Kapriel Kasbarian Director Ascentium Associates Tel: kkasbarian@ascentium-associates.com 7

8 FAQ Frequently Asked Questions: For a full FAQ please visit Venue-Iknowthecityinwhichthecoursewilltakeplace,butwhereexactlyisthetrainingvenuelocated? The venue will be located in a central part of the city. As we use several different venues (depending on availability and the number of registered delegates) in each city, we will finalise the venue once we have a good idea of how many attendees we are expecting and will inform you accordingly. We usually finalise the venue about 2-3 weeks before the course. Laptops Do I need to bring a laptop to the course? Unless it is specified, bringing a laptop is optional Travel & Accommodation I do not live local to the course, do the course fees include my travel & accommodation expenses? No Each attendee is responsible for their own travel & accommodation costs and arrangements. Timing What time does a training day start and end? Unless specified otherwise, training will start by 9:15am and finish by 5:00pm. On the first day of a course, attendees are required to register their presence and collect their course materials and are therefore requested to arrive by 9:00am. Food & Beverages Are there any food or drinks served during a training programme? There will be 2 to 3 short tea/coffee breaks and a lunch available daily and are included in the programme fee. 8

9 Financial Modelling for Private Equity 2-Day Executive Education Training Programme Hong Kong: October 2013 To Register visit or call Ascentium Associates Ltd is registered in England, Company No Registered office: 33 St James s Square, London, United Kingdom, SW1Y 4JS