This intensive and highly practical workshop will teach delegates how to design and construct and then effectively use robust financial models, using the unique branded system developed by Dr Gerald Strever, the “Financial Modelling Quadrant system.


The four Quadrants are:

• Identifying the Drivers of the intrinsic value of the company
• Model the Financial Statements - Balance Sheet, Income Statement and Cash Flow
• Model the Sensitivity of the intrinsic value of the company by flexing the Drivers
• Simulate the possible variability of the intrinsic value of the company using Monte Carlo Simulation.


This is a Research-Based Training Course: the course curriculum has been developed and designed from research with actual industry practitioners and will in just 2 days give you all the tools and techniques needed to move from basic techniques to becoming a “blackbelt” in Financial Modelling. Other courses in the market cover only one Quadrant – the Financial Statements.
All the topics covered will include hands-on exercises and delegates will each receive a link to free online file, containing all the exercises plus the Excel Add-lns for the Risk Simulation and Sensitivity Exercises, plus a User Defined Function, XMIRR, created by the workshop trainer.
These Add-Ins are not time-limited and can therefore be used after the workshop. They represent what is arguably the richest set of software available with any Financial Modelling workshop in the market.
The File also contains additional exercises, with model answers, for revision purposes.
The workshop is practical & focused: each of the modules presented will include step-by step explanations and hands - on examples. There will be simulation exercises with practical computer-based exercises focusing on unique financial modelling scenarios. A comprehensive Workshop Reference Manual will be provided - packed with ideas, techniques, graphics, flow-charts and advanced Excel tools.. Please bring your laptop computer to the workshop. Your computer must be Windows based with a full installation of Excel 2010 or later, including the Analysis ToolPak and Solver as well as Adobe Reader.

Prerequisites

Participants should have a working knowledge of Financial Statements and a good knowledge of Microsoft Excel.

Free Takeaways

Excel Add-Ins – SenSit and SimVoi plus a User Defined Function, XMIRR.

Course Objective

DISCOVER the most efficient ways in planning, designing, structuring, cross-checking and auditing your financial models.

CONSTRUCT robust, reliable financial models that are easy to amend and maintain integrity.

UNDERSTAND advanced techniques and applications in financial modelling.

LEARN to measure, interpret and predict a company’s performance using advanced Excel financial models.

IMPROVE decision-making processes with better risk evaluation, sensitivity analysis and scenario modelling.

SAVE time on the analysis and manipulation of your financial models with keen insights from our expert.

SOLVE your real-life financial modelling issues and challenges.

APPLYpowerful visualization techniques to deliver maximum impact when presenting your financial models.

OPTIMIZE financial models to ensure they are easy-to-use and well-documented in accordance with spread-sheet modelling best practices.

PREPARE financial models to address a variety of financial modelling scenarios.



WHY YOU SHOULD ATTEND

1. In business, every decision has an impact on the overall performance of the organization. Managers and shareholders need to, therefore, make the best decisions to keep their firms afloat. The best run companies internationally use Financial Modeling to assist them in making the best decisions.
2. A business model can be understood as a simulation of the financial position of the firm, several years from now. Aspects such as returns on investment(ROI), profitability, costs, revenues, cash flows, and numerous others are reflected by the model. With the information of your firm’s future position at your fingertips, you are more likely to make the best decisions.
3. Without a Financial Model of your company, everyone has his or her version of the position of the company, now and in the future. Making the right decisions is, as a result, difficult since each stakeholder thinks that he or she is right. With an integrated business model in place, decisions will be made easily and fast since they will be based on information from a single source. The course curriculum has been developed and designed from research with actual industry practitioners and will, in just 2 days, give you all the tools and techniques needed to move from basic techniques to becoming a “Black Belt” in Financial Modelling. Other courses in the market cover only one Quadrant – the Financial Statements.

PRE- and POST-COURSE SUPPORT

• You will receive pre-course readings on "Primer on Financial Statements" and "Primer on The Time Value of Money" plus a set of “Excel Refresher” exercises.
• You will receive unlimited online support after completing the workshop, with any questions you may have relating to the topics and skills learned on the workshop, for life.

Know About Your Trainer

Edward has created innovative forward pricing, productivity measurement and investment valuation software for consulting clients throughout the United States. He has taught energy economics and finance throughout the world, and formulated significant government policy and corporate strategy in the U.S. His consulting clients include investment banks, commercial banks, research institutions and government agencies on a wide variety of complex valuation and advisory matters. He has constructed a unique framework for electricity price forecasting and valuation using production cost modelling techniques combined with option price theory and Monte Carlo simulation. He is also an adjunct professor at leading University where he teaches courses in microeconomics. Along with his practical experience that covers a multitude of major advisory projects, he has taught specialised courses in financial modelling, electricity pricing, option valuation, mergers and acquisitions and contracting to investment banks, commercial banks, industrial corporations and electric utility companies.

He was formerly Vice President at the First National Bank of Chicago where he directed analysis of energy loans and also created financial modelling techniques used in advisory projects. He has used the models in providing expert testimony on subjects ranging from capital structure to investments in multi-billion dollar nuclear plants to complex valuation of new investments. He received an MBA degree specialising in econometrics (with honours) from the University of Chicago and a BS degree in finance from the University of Illinois (with highest university honours). He has written many articles and is in the process of completing a textbook on valuation of electricity assets.

COURSE OUTLINE

  • DAY ONE

  • Testing Possible Drivers Using the Analysis ToolPak

  • • Cause and Effect Testing
    • Using Graphical Regression Methods to Test Possible Drivers
    • Using the Analysis Toolpak to Test Possible Drivers

    Exercise: You will use Excel’s native regression function plus the regression function in Excel’s Analysis ToolPak to test the correlation of possible drivers, to the Output Metrics.

  • Building a Financial Planning Model from Scratch

  • • Identifying potential Driver variables
    • Building a Financial Planning Model
    • Extending the Model to Year 2 and beyond
    • Initial Accounting Statements for a Financial Planning Model

    Exercise: You will reverse-engineer a conventional 3 statement financial model to include the Drivers tentatively identified.

  • Analysing Key Financial Data and solving ‘What If’ problems to Optimise your Model

  • • Various approaches to what-if analysis, including: data tables, sensitivity analysis and goal seeking
    • Working on data tables - one-way and two-way
    • Using Goal-Seek.
    • The power of the Solver function
    • LP Simplex, GRG Non-Linear and Evolutionary Solve

    Exercise: You will use the Data Table and Solver functions to optimise the Model

  • DAY TWO

  • Sensitivity Analysis Using SensIt

  • • Sensitivity Analysis Using SensIt
    • One Input, One Output
    • Many Inputs, One Output Tornado
    • Many Inputs, One Output Spider chart

  • Exercise: You will use the SensIt Excel add-in to test the sensitivity of the modelled company’s intrinsic value to changes in the Input Variables

  • Monte Carlo Simulation Using SimVoi

  • • SimVoi Overview
    • Using SimVoi Functions
    • Monte Carlo Simulation
    • Random Number Seed
    • One-Output Example

  • Exercise: You will use the SimVoi Excel add-in to perform simulations on the Model

  • FUNCTIONS IN DAX IN DETAILS

  • • Logical Functions
    • Date and Time Functions
    • Aggregation Functions
    • SimVoi Output for One-Output Example


  • Review and development of your own mode

  • • This task is a major opportunity to devise and create your own model or improve an existing model from your own organisation.
    • If you do not wish to use a model from your own organisation, your trainer will provide you with data to create a model


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