Our premier and most comprehensive 6 weeks fulltime Financial Modeling and Investment Banking program is born out of inherent need in the market. Students often exit the academic world without practical skills, leaving a void during an era when finance needs some of the world’s brightest minds. Our mission is to help the delegates fill that gap. The 6 weeks fulltime investment banking training program does precisely that.
The training bridges the gap between what you know (academic theory) and what corporates are looking for (Practical aspects) with intensive on-the-job training. The program equips you with the skills you need in interviews and on the job.
We are confident to get you an entry in to the capital markets. So we charge our fees as investment bankers do for the deals – Engagement Fee and Performance Linked fee.
- 40% fee at the time of enrollment for the workshop
- A substantial, 60% on placement
We have multifarious successful stories of transformation, where once capital markets aspirants are now capital market participants – working as investment bankers, strategic consultants and finance advisers.
The 6 weeks Financial Modeling and Investment Banking Training is designed to provide delegates with a comprehensive understanding of financial modeling skills, investment banking techniques, equity research, and capital markets. Designed by Investment bankers and industry experts, this program plugs the gap between theoretical concepts learned during academic degrees/diplomas and on-the-job application of those concepts.
Financial modeling course structure*
Week 1: MS- Excel, Financial Statements, Ratios, Relative Valuation
Week 2: Financial Modeling, DCF Valuation
Week 3: Merger Model, Valuation of a company going public (IPO)
Week 4: Capital Budgeting (project feasibility, decision modeling), DDM Modeling
Week 5: Company Profiles, Pitch Books, Valuation prospects – IPOs, M&As, PE
Week 6: IPO pitch book, project feasibility case studies, revision
* Assessments – written tests and mock interviews are integral part of training and happen every week.
Financial modeling training detailed contents
1. MS Office
A financial analyst won’t be spending all his/her time on Excel building financial models, but will be crunching a fair amount of data and creating charts, tables & presentations. Human Assets of an entity (Finance, Marketing, HR etc.) live and breath Excel, word and PowerPoint and and we will teach you all the best practices of the most important tools.
This course focuses on learning the fundamental building blocks of Excel so you can begin to take advantage and leverage all of Excel’s true capabilities. In order to efficiently build models and crunch large data dumps in Excel, one must master the basics before the advanced content. Learn relevant financial formulas, proper navigation, formatting of files and worksheets, creating calculations in cells, and linking between worksheets/tabs.
- Mathematical functions: SUM, MAX, AVERAGE, MEDIAN, MIN
- Financial functions: PV, FV, RATE, NPV, IRR
- Logic Functions: IF, nested IF, CHOOSE, AND, OR
- Formatting: fills, copy formulas, paste special
- What If Analysis: Goal Seek, Scenario Manager, Data Table
- Sorting Data (By Values, By Cell Color, By Font Color, By Cell Icons)
- Summarizing Data with Pivot Tables by changing value field settings, using pivot option and pivot charts
- Protecting and Sharing as protecting cells, worksheets, workbook
The focus here is how to effectively and efficiently utilize Microsoft Excel for data analysis. If you don’t want to spend hours figuring out how to navigate and work on monumental data and come out with apt analysis, you need to know to learn some functions which will make your work simple, uncomplicated and simply Wow!!!
- Offset Functions, Match Function
- Multiple and Indirect Functions (VLOOKUP+If, VLOOKUP+Match, Index+Match, Multiple Ifs, Data Cleaning, Arrays)
- 1-2-3 way sensitivity analysis
- Iterative calculations
- Statistical functions as Correlation, Regression
2. Finance foundations
Learn the basic finance concepts that are the backbone of any financial analysis. An understanding of these basic core tools is absolutely critical to mastering any financial or valuation analysis. Concentration is placed on the integration of the financial statements. We answer all the rarely answered “WHY” questions—”why do we do this, why do we do that”—instead of answering: “well, just because” or “that’s the way it’s always been done”, we actually clearly and easily explain the logic of why and how not just the what.
- Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
- Relationship between the Income Statement and Cash Flow Statement
- Understand how financial statements are inter-related
- Overview and explanation of major financial ratios, including liquidity, asset management, debt management, profitability, and market value ratios
- DuPont RoE, Breakup of RoIC (RoIC tree)
- Break Even Point, Margin of Safety
3. Capital budgeting
Financial feasibility of projects are predominantly capital budgeting and financial decisions faced by firms. Most of the big projects are started/not started based on prudence with numbers and economic viability coming from them. We train you in this and post the training, delegates :
- Recognize the advantages of using Net Present Value (NPV) versus Internal Rate of Return (IRR) to calculate the value of a project
- Learn to calculate, XIRR, MIRR, make dynamic model with multiple options using scenario manager
- Determine the value of projects that have different life spans using different approaches
- Recognize the formulas for the after-tax Weighted Average Cost of Capital (WACC) and Capital Asset Pricing Model (CAPM) and how they are used to determine the cost of capital
- Identify the formulas for calculating cash flows resulting from investments and how they are used to determine the profitability of a project
4. Trading comparables
Trading comps analysis is the quickest, most widely used valuation methodology, and fundamental part of the core valuation skill set of investment bankers and finance professionals. Build a detailed, thorough trading comps analysis (analysis of selected publicly traded companies) and learn how to properly construct a relative valuation analysis the correct way as well as how to normalize financials for extraordinary items, non-recurring and restructuring charges.
- Learn the steps required to construct a trading comps analysis (Enterprise Value, Latest Twelve Months, Cleaning Reported Financials, Calculate & Benchmark Multiple)
- Impact of Convertible Securities – Options, Warrants, RSUs, Convertible Bonds, Convertible Pref. Share
- Why Non Controlling Interest is added in calculation of EV? How do we find market value of Non Controlling Interest?
- Proper Treatment of Operating and Capital Leases
- Different Types of Multiples – EV multiples vs. Equity Multiples
A proper trading comps analysis helps you understand:
- How does the target company fit into the comparable universe?
- How to allocate enterprise value between holding and subsidiary companies?
- What type of multiple is most appropriate to value the target?
- Should we value the target company at a premium or a discount to the comparable universe?
- Why would one company command a higher or lower premium than its direct competitor?
- What multiple range should be applied to the target?
- WACC Impact on Multiples
5. Transaction / deal comparables
Transaction / deal comps analysis is a variant of comparable valuation. Value of the firm is derived by assessing the value of comparable deals recently happened. Build a deal comps analysis (analysis of selected acquisitions), similar to trading comps analysis, but from an acquisition context using transaction data.
- Learn the steps required to construct a deal comps analysis (Enterprise Value, Latest Twelve Months, Cleaning Reported Financials, Calculate & Benchmark Multiple)
- Calculate transaction value (purchase price), premiums and multiples in past deals
- Difference between transaction value and enterprise value
- Difference between Trading Multiples and Deal Multiples
- When to apply Deal Multiples or Trading Multiples for Valuation
6. Merger modeling
Merger Modeling is critical in deciding about the impact of a Mergers and Acquisitions (M&A) transaction on the acquirer companies’ future performance. After modeling a company’s profits / cash flow and valuing the entity, one must decide what to do with the company in the grand scheme of its strategic alternatives, including a merger or acquisition. It provides the fundamental knowledge required to understand, analyze and structure mergers & acquisitions.
- Merger consequence analysis including accretion / dilution and financial implications of a deal
- Discussion of key components with financial impact on transactions
- Detailed explanation and analysis of line-by-line construction of accretion / dilution model
- Factoring the synergy impact on future earnings performance of acquirer
- Analysis of break even PE for both 100% stock and 100% cash considerations
- Contribution analysis and its relevant in the analytical process
7. Advanced financial & valuation modeling
Take your basic and core concepts to the next level to cover the fundamental financial modeling concepts that one must be master in order to perform the financial analysis required. We plow deep into building robust and integrated models and ripping apart footnotes and making subjective inputs and properly analyzing the results of our models. Construct Discounted Cash Flow (DCF) valuation model, detailed revenue segment build-up, project more precise depreciation schedule, construct a reference range and football field summary valuation.
- Projection of revenue for the company based upon key revenue drivers
- Projection of complete income statement of the company
- Projection of cash flow statement by building each component of cash flow statement
- Balance the model using the debt schedule and debt sweep logic (important in terms of balancing the model)
- How does the revolver facility actually balance the model?
- How are the financial statements integrated using the Interest schedule?
- What are circular references, why should they be avoided and how to get around circular references
- Estimate unlevered free cash flow (free cash flow to firm)
- Different ways to calculate the terminal value and their implications on value
- EBITDA multiple and perpetuity growth approaches and their inherent limitations
- Weighted average cost of capital (WACC) analysis that supports the DCF- Calculation of Risk Free Rate (using risk free rate of other country and adjusting it)
- Calculation of Beta and adjusting it for liquidity, size premium etc
- Impact of Leverage on Beta of the company and how to adjust that impact by un-levering and re-levering the Beta
- Calculation of ERP (using predictive model, spread rate, country risk etc)
- Calculation of WACC in absence of required data or reliable data
- Building different scenarios in the model to see impact on final DCF valuation – base case, best case and doom case scenarios
- Build and analyze reference range and football field to summarize overall valuation metrics
8. Company Profiles
Company profiles are the most basic overview and descriptions of a company being analyzed. Profiles supply the most basic and fundamental, yet probably the most important aspects of a company. Gain an introduction and explanation of the major components of a profile for a publicly traded and private company.
- Summary business description, segmental breakup
- Stock price charts, ownership analysis,
- Financial summary, Competitive Benchmarking
- SWOT Analysis
- Historical evolution, management and Board of Directors (BoD) biographies
9. Pitch books
An analyst spends a good amount of time in investment banks in preparation of pitch books (buy side, sell side, IPO etc.). A pitch book consists of a careful arrangement and analysis of the investment considerations of a potential or current client. Structure of a pitch book is very important which keeps on changing per transaction requirements. Prepare an entire pitch book keeping in mind end objective of the book. Some of the key learnings you would get from this process are:
- What’s the use of various models you prepared in previous classes
- What’s the flow of transactions
- What’s role of investment banker in execution of transactions
Some of important sections of pitch books are (though it varies case to case)
- Process of whole transaction
- Analysis of company from perspective of buy side, sell side, IPO etc.
- Industry analysis (Industry landscape, key industry trends, operation benchmarking, valuation benchmarking etc.)
- Valuation aspects
Our Full Time Financial Modeling Courses (6 Weeks) start on 3rd June in New Delhi and 10 Day Weekend Workshop starts on 8th June in New Delhi.
Only few seats remain. Interested candidates can contact me.