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Certified Company Valuation Modeller

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Course Overview

This five days training workshop is designed for all finance and non-finance professionals seeking to understand the techniques required to assess the value of investments and companies, as well as advise clients regarding the desirability of projects and investments.
We start with a comprehensive introduction to valuation techniques for use in various circumstances. These techniques can be used to value companies for acquisition or disposal purposes, or value other asset acquisitions such as real estate, and they are also useful for pricing financial instruments and assist in assessing the financial feasibility of projects.
We will also review financial modelling techniques for valuation, and we will be using Excel valuation models that are used in the industry.

Key Takeaways

Understanding of the various approaches to valuation and when to use what technique.
Using relative valuation techniques and managing the challenges of this approach.
Thorough understanding of DCF and the intricacies of this detailed bottom-up approach to valuation.
Creating detailed merger valuation/analysis models for live deals.
Ability to value anything, including intangible assets, financial instruments, projects and companies.

International Academy of Business and Financial Management
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The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional association with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.

Course Outline

Day 1: Introduction and relative valuation techniques
Session 1: Introduction to valuation

·What is valuation?
·Understanding of the terminology used in the valuation world
·The different approaches to valuation – relative vs fundamental valuation
·Discussion of the advantages and disadvantages of each type of technique
·What is the difference between Enterprise value and Equity value?
·The valuation bridge and the adjustments needed to calculate an enterprise’s value
Activity: The participants will be required to derive the Enterprise Value and Equity Value (and share price) for a couple of companies using the valuation bridge adjustment.

Session 2: Relative valuation techniques

·What is the trading comparable valuation approach?
·When do we use this approach?
·The challenges around selecting the right companies for the comparison
·Calculating the valuation multiples
·Which multiple is relevant? Equity vs Enterprise multiples
·Putting it all together – calculating the target company’s share price/enterprise value
Activity: The participants will be required to use a trading comparable model for selected companies in order to calculate a proposed share price range for the target company.
·What is the transaction comparable valuation approach?
·How does it differ from trading comparable?
·Can we use this approach for more than just companies?
·Calculating the multiples for the selection
·Deciding on the appropriate multiple to use for the valuation
·Converting the multiples chosen to a value for the target asset
·Deriving the control premium to pay for a corporate acquisition
Activity: The participants will be required to derive a valuation for real estate properties based on the transaction comparables approach.

Day 2: Fundamental valuation techniques
Session 3: Introduction

·Introducing the concept of the time value of money
·Discounted Cash Flow techniques (DCF) and when to use them
·Using DCF to calculate the present value (PV) of lump sums and annuities
·Deciding between different investment alternatives using DCF
·Using DCF to determine the fair price of financial instruments or investments
Activity: The participants will be required to calculate the price of various financial instruments using DCF techniques.

Session 4: Investment evaluation

·Important considerations for making investment decisions
·Using the Payback period and Rate of Return approaches to choose between different investment possibilities
·Limitations of the Payback period and Rate of Return approaches.
Activity: The participants will be required to calculate the payback period and rate of return for a couple of case studies, and advise management as to whether these investments are worthwhile
·Using the time value of money in the context of individual investments
·Deciding on which discount rate is appropriate
·Factoring in investment risk in your evaluation
·How long do we forecast for?
·Calculating the Net Present Value (NPV) for the project/investment
·Calculating the Internal Rate of Return (IRR) for the investment
·The challenge posed by irregularly timed cash flows and the solutions available
Activity: The participants will be required to use a DCF model to advise management about whether to invest in a project or not.

Day 3: DCF techniques
Session 5: Valuation of Companies

·The differences between investment valuation and corporate valuation
·Using DCF techniques for valuing companies
·Forecasting the Free Cash Flows
·What discount rate to use?
·Calculating the Weighted Average Cost of Capital (WACC)
·The challenge of valuing an unending stream of cash flows
·Calculating the Terminal value
·Deriving a share price
·Using scenario analysis to stress test your valuation and derive a valuation range
·Presenting your valuation findings
Activity: The participants will be required to create a model to value a target company using DCF techniques and imply the share price.

Day 4: M&A modelling
Session 6: M&A modelling

·What are Mergers and Acquisitions?
·What can a merger model tell us?
·How much time do you have?
·Creating a compact and quick M&A model
·What outputs do we focus on with a compact M&A model?
Activity: The participants will be required to complete a compact M&A model and using this model, perform a preliminary analysis of the deal.
·Structuring a fully integrated M&A model
·Steps to complete a fully integrated M&A model
·Forecasting the financial statements of both the target and the acquirer
·Capturing the deal assumptions and calculating goodwill
·Initial consolidation of the opening balance sheet incorporating the financing of the deal
·Combining the two entities’ forecasted financial statements
·Deal specific adjustments required
·Techniques for handling circular references in the model
·Completing various deal analysis including EPS, ROIC and premium analysis
·Running sensitivity analysis on the model output
·Summarising the analysis and data for presentation purposes
Activity: The participants will be required to complete a fully integrated M&A model and perform an analysis of the deal.

Day 5: Leveraged valuation and modelling
Session 7: Leveraged Valuation

·What is a Leveraged Buy Out (LBO)?
·What is the purpose of a LBO valuation model?
·Calculating implied share price and IRR for a LBO transaction
·What is the time frame and the exit strategies available for a LBO transaction?
·What can a LBO model tell us?
·Creating a compact and quick LBO model
Activity: The participants will be required to complete a compact LBO model and perform a preliminary assessment of the deal.
·Structuring a more complex leverage valuation model
·Steps to complete a full LBO model
·Capturing the deal assumptions, sources and uses of funds and calculating goodwill
·Initial consolidation of the opening balance sheet incorporating the financing of the deal
·Understanding of the increased complexity of financing in a LBO deal
·Forecasting the financial statements of the target and their cash flows
·Using a debt waterfall and cash sweep approach to derive the debt balances
·Planned debt repayments vs accelerated repayments
·Coping with circular references in the model
·Performing various analyses on the deal, with a particular focus on the IRR to each investor
·Running sensitivity analysis on the model
Activity: The participants will be required to complete a full LBO model and calculate the IRR to each investor.

Who Should Attend?

This highly practical and interactive course has been specifically designed for
→ Corporate financiers
→ Transactors
→ Portfolio managers
→ Venture capitalists
→ Research analysts
→ Investment bankers
→ CEO’s
→ Board members
→ Financial advisors
→ Hedge fund managers
→ Private equity managers
→ Trustees
→ Risk controller
→ Strategicplanners
→ Corporate lawyers
→ Compliance officers
→ Senior managers
→ Corporate accountants
→ Auditors

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What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or [email protected].
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.