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5 Day Core Comprehensive:
Financial Modeling & Corporate Valuation

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Training The Street’s Financial Modeling and Corporate Valuation course explores the modeling and valuation techniques commonly used by Wall Street firms. The proven curriculum provides practical application of the standards and methods that a practitioner needs to be a top performer. Led by our team of experienced instructors, all of whom are former practitioners, the primary focus of the program is to teach participants the practical applications of the theoretical methodologies. Participants will blend accounting, finance, and Excel skills into the construction of three interactive models from “scratch” (3 statement, M&A, and LBO) over the course of 5 intense days of training.

To register or to view training locations and date options, please see our course calendar.

Course Pricing:

  • Early Registration: $1,000 per day (register at least 14 days in advance)
  • Standard Registration: $1,300 per day
  • Group rates are available
  • Discounts offered to existing clients

Please contact info@trainingthestreet.com for more information.

Core Comprehensive Outline:

Days 1 & 2 – Financial Modeling & Advanced Sensitivity Analysis

  • Overview and introduction to financial modeling
  • Excel best practices and efficiencies
  • Construction and Application of:
    • Core statements
    • Working capital schedule
    • Depreciation schedule
    • Amortization schedule
    • Other long-term items schedule
    • Equity schedule
    • Shares outstanding schedule
    • Debt and interest schedule
  • Troubleshooting the Model:
    • Understanding and controlling for circular references
    • Balancing the model
    • Making the model “deal ready”
  • Utilizing the Finished Product:
    • Data tables
  • Advanced Sensitivity Analysis:• Adding scenarios to the model
    • Creating a toggle for cases and naming cells

Day 3 – Public & Acquisition Comparables and Discounted Cash Flow Analysis

  • Overview of valuation methodologies and fundamental concepts
  • Public Comparables Analysis:
    • Choosing the appropriate peer group
    • Gathering public information
    • Calculating market and enterprise value
    • Normalizing for non-recurring items
    • Calculating latest twelve months (LTM)
    • Calculating relevant multiples
    • Deriving an implied valuation range
    • Analyzing multiples and a comparables universe
    • Exercise: “Spreading public comparables” for the case company
  • Overview of Acquisition Comparables Analysis:
    • Choosing the appropriate deal list
    • How control premiums and synergies impact multiples
    • Sources of public information
  • Discounted Cash Flow Analysis:
    • Strengths and considerations of a DCF analysis
    • Deriving a weighted average cost of capital (WACC)
    • Discounting unlevered free cash flows
    • Estimating the terminal value (exit multiple vs. perpetuity growth rate approach)
    • Determining the valuation range based on DCF analysis
    • Exercise: Adding DCF output to a 3-statement model for the case company
  • Analyzing Results:
    • Imputing valuation ranges
    • Creating a “Football field” for the case company based on different valuation methodologies

Day 4 – Merger Consequences Analysis

  • Merger Consequences Analysis:
    • Concept of affordability analysis
    • Overview of SFAS 141/142 and IFRS 3
    • Purchase accounting overview
    • Creation of goodwill and write-ups, including possible incremental D&A
    • Sources and uses of funds
    • Opening balance sheet and purchase accounting adjustments
    • Pro forma income statement
    • Accretion/dilution analysis
    • Credit rating considerations
    • M&A transaction considerations (stock vs. cash, social issues, etc.)
    • Asset vs. stock purchase
    • Tax deductibility of goodwill
    • Section 338 election
    • Exercise: Building an M&A model for a potential acquisition of the case company

Day 5 – Leveraged Buyout Analysis

  • Leveraged Buyout Analysis:
    • What makes a good LBO candidate?
    • Concept of value creation via de-leveraging, operational improvements and “multiple expansion”
    • Sources of funding for an LBO
    • Differing viewpoints for LBO constituents
    • Purchase price determination
    • Debt capacity and financing options (Pro rata facilities, institutional facilities, mezzanine capital)
    • Sponsors equity and internal rate of return (IRR)
    • Fundamentals of “recapitalization accounting”
    • Mechanics of constructing an LBO model
    • Exercise: Constructing an LBO model for the case company

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