Introduction

By distilling key information regarding cash flow levels and risks, financial modeling helps decision-makers make informed choices based on data analytics that move their firms forward.

In this training program, learn how to build financial models that can be used in corporate finance, investment banking, commercial banking, and portfolio management. The instructor covers financial statement models, investment banking models, M&A models, buyout models, and DCF models—all using Microsoft Excel.

Methodologies

Throughout the course, the instructor includes exercises—together with case studies—that can provide you with a practical understanding of these key topics.

Objectives

The main goal of financial modeling is to accurately project a company's future financial performance. Modeling can be useful for valuing companies, and determining whether a company should raise capital or grow the business organically or through acquisitions. It equips you with the fundamental knowledge and practical skills needed in Investment Banking, Equity Research, Portfolio Management, Project Finance, Credit Research, Financial Planning & Analysis, etc.

Training Outlines

Day 1

Financial Modeling Basics

• What is financial modeling?

• Why is financial modeling important?

• Business questions and financial models

• Data for a model

• Sources of data

• Gathering data from FRED for Excel

• Getting started with the project

• Excel tips for financial modeling

Corporate Financial Modeling: Three-Statement Financial Model

• Linking financial statements

• Setting source parameters

• Three-statement financial model

• Assumptions in financial statements

• Forecasting in financial statements

• Improving model quality

• Putting it all together

Day 2

Evaluating Corporate Financial Models: Three-Statement Model

• Financial modeling strategies

• Sensitivity analysis and financial models

• Adding visuals to a financial model

Investment Models: DCF Model

• Financial valuation models

• Cash flows in the valuation model

• Terminal value in a valuation model

• Interpreting a DCF model

Day 3

Banking Models

• Beyond the basics in financial models

• Corkscrews and models

• Waterfalls and models

• Adding toggles to a financial model

• Model outputs

• Hiding tabs and making models readable

• Stress testing models

Day 4

Buyout Models

• Interest rate assumptions in models

• Discount rates in models

• Top-down financial models

• Bottom-up financial models

• IRR decisions in financial models

• NPV decisions in financial models

• Limits of financial models

Financial Modeling across Industries

• Characteristics of financial models

• Modeling in banking

• Modeling in corporate finance

• Modeling in investments

Day 5

Building and Maintaining Models

• Applications of financial models

• Bitcoin and cryptocurrency valuation modeling

• Updating financial models

• Maintaining ongoing financial models

Financial Modelling and the International Business Environment

• Define the Terms Model and Financial Model

• Learn the 10 steps to create good Financial Models

• Use Flowcharting Techniques to improve your model

• Overview of the strategic and operational aspects of a global business entity

• The Organizational Planning Model

• The Product/Decision/Information Cycle

• The Objectives of Financial Analysis

• Creating wealth by adding value

• Basic metrics of wealth creation and financial performance