Valuation and Financial Modeling

Learn the Language of Finance

Get the competitive advantage you need by learning the tools of the trade

Securing a job in finance is more competitive than ever.  To separate yourself from the pack, you need an edge. Our boot camp program helps you earn that edge, through our proven methods and expert first in class instructors.

Course Information

Structure

Each program consists of a 28-hour class, typically offered over three to four weekends, with a weeknight course offered in NY.

Personal Preparation

We provide a comprehensive resume and mock interview guide.  Our bankers provide personalized resume feedback and strengthen your interview skills. 

SESSIONS

topic1

INTRODUCTION AND FINANCIAL MARKETS OVERVIEW

  • Introduction and Resume of Banker-Instructor
  • Introduction of Student and their Desired Goals
  • Financial Markets Overview
    • Company (Private and Public)
    • Banks for Debt Financing
    • Investment Banks – Full-Service, Boutique, Industry Focus, Product Focus, Middle Market
    • Investors – Wealthy Individuals, Private Equity, Hedge Funds, Fund of Funds
    • Buy-side vs. Sell-side within a general financial context
  • What are the financial institutions looking for in a potential candidate?
    • Investment Banks – Analysts / Associates
    • PE Funds – Analysts / Associates
    • Hedge Funds – Analysts
topic2

SEC FILINGS & FINANCIAL STATEMENT ANALYSIS

  • Regulatory Agencies: US Securities and Exchange Commission, European Securities and Markets Authority, UK Financial Conduct Authority, Canadian Securities Commissions, SEC Filings
    • Review the types of filings using www.SEC.gov (10-Q, 10-K, 8-K, etc.)
    • Review the important sections of 10-K and 10-Q
    • Business description, competitors, P,P&E, MD&A, Notes, Segment Financials, etc.
    • Finding information and filings using the Exhibit section (indentures, credit agreements, employment agreements, important business contracts, etc.)
  • Historical – Income Statement, Balance Sheet and Cash Flow
    • Review Income Statement concepts
    • Review Balance sheet concepts
    • Review Cash Flow Statement Structure:
      • Review each section: Operations, Investments and Financing
  • Financial Statement Analysis (Ratio Analysis)
  • IFRS vs. GAAP
topic3

COMPREHENSIVE VALUATION ANALYSIS

  • Why do we value companies?
  • Difference between Book Value and Market Value
  • Understanding Equity Value vs. Total Enterprise Value (TEV)
    • How to calculate TEV
  • The three (3) Generally Accepted Valuation Methodologies
    • Discounted Cash Flow Analysis (DCF)
    • Calculating Free Cash Flow (FCF)
    • Weighted Average Cost of Capital (WACC) – Discount Rate
    • Terminal Value – Gordon Growth vs. EBITDA Multiple
    • Sensitivity Tables
  • Trading Multiples
    • Definition of Comparable Companies – How to select your Comp Universe
    • Debt Free (Rev, EBIT, EBITDA) Multiples vs. P/E Multiples
    • Forward-looking numbers
      • Importance of Research Reports
    • Risk Rankings (growth, profitability, etc.)
  • Precedent Transactions
    • Determining Appropriate Transactions
    • Announce Date vs. Close Date
    • Acquisition Premium
    • Types of consideration (cash, equity, combination)
  • Spreading Comps
    • Spreading Trading Comps
    • Spreading Precedent Transactions
  • Combining all three (3) Valuation Methodologies
    • Pros and Cons of each method
    • “Valuation is an Art, not a Science”
topic4

INTEGRATED CASH FLOW MODELING

  • Uses for a Financial Model on Sell-side and Buy-side
  • Tips for Setting up a Financial Model
  • Spreading Historic Financial Statements
  • Deriving Historic Ratios, Trends and Variables
  • Creating Five Year Projections for Income Statement, Balance Sheet and Cash Flow
  • Debt and Interest Schedule
  • Integration of Projected Income Statement, Balance Sheet and Cash Flow
  • Revolver Modeling
  • Sensitivities on Financial Model
topic5

LEVERAGED BUYOUT MODELING (LBO)

  • Uses for An LBO Model on Sell-side and Buy-side
  • Review of LBO Model Structure
    • Purchase Price Calculations and Considerations
    • Capital Structure Options / Reviews
      • Revolver and senior secured financing
      • Second and Third Lien tranches
      • Unsecured cash and PIK debt
      • Hybrid debt / equity PIK instruments
    • Discussion of Typical Financing Sources for LBO
    • Creation of a Sources and Uses Worksheet
    • Proforma Income Statement, Balance Sheet, Cash Flow
    • Integration of Income Statement, Balance Sheet, Cash Flow
    • Debt and Interest Schedule
    • Revolver and mandatory / option debt prepayment and impact on returns
    • Returns Analysis – IRR on debt, hybrid instruments and equity investments
  • Sensitivities on LBO model and Return Analyses
topic6

MERGER & ACQUISITION MODELING (M&A)

  • Uses for a Merger Model
  • Shortcut Accretion / Dilution Model
    • Calculation of Equity Value and Purchase Price
    • Explanation of consideration used in purchase (stock, cash, assumed debt)
    • Discussion of Multiples Paid
    • Post-Merger Control Issues
    • Synergies and pre-tax synergies required to breakeven
    • Revenue and EBITDA contribution
    • Proforma Income statement
    • EPS dilution for acquirer
    • Discussion of Goodwill and other accounting treatment issues
    • Sensitivities
  • Full Merger Model
    • Creation of Assumptions Page (purchase price, consideration paid, control, synergies, etc.)
    • Creation of Proforma Income Statement, Balance Sheet and Cash Flow
    • Sensitivities
topic7

GENERAL INVESTMENT BANKING PROCESS & BEST PRACTICES

  • Pitching
    • M&A and Private Placement
      • Investment Bank
      • Industry Overview
      • Market Overview
      • Client
      • Valuation (contingent on information provided)
      • Process
      • Buyer/Investor Descriptions
    • Financing
      • Investment Bank
      • Industry Overview
      • Market Overview
      • Client – Positioning
      • IPO Valuation (contingent on information provided)
      • Marketing
      • Process
  • Sell-Side Process
  • M&A and Private Placement
topic8

INTERVIEW TRAINING & RESUME SUPPORT

  • Mock Interviews
    • Incorporation of skills acquired through IBI
    • 140 Top investment banking interview questions and questions to ask interviewer
    • Investment banking specific insight and interview process
    • What we look for when hiring analysts and associates
  • Resume Review
    • IBI deliverables on resume
    • Relevant work experience & interests
    • Networking and marketing
      • Alumni
      • LinkedIn