Financial Modeling Certification Course with Placement Support

The Investment Banking Training by The WallStreet School is designed to provide delegates with a comprehensive understanding of investment banking techniques, equity research, and capital markets. Designed by Investment bankers and industry experts, this programme plugs the gap between theoretical concepts learned during academic degrees/diplomas and on-the-job application of those concepts.

Module - 1

Basic to Intermediate Excel

The curriculum of the workshop is so designed to make delegates super proficient in Excel and they develop the skillsets which will put that in a good stead as a Finance Analyst in a consulting, equity research or an Investment Banking profile. For anybody to efficiently build financial and business models, one needs to take the excel bull by the horns by learning the basics content and then graduating to advanced level content. The basics of excel will ensure learning and applying fo relevant financial formulas, navigating in the model, scaling up speed and starting to creating, formulating and conceiving own formula in given situations. That is how we start

Using keys instead of mouse in excel
Sorting Data and using advanced filters to overcome the limitations of filters
Cell Freeze, Row Freeze, Column Freeze
Using conditional formatting in excel and making the data look more meaty
Linkages used for Financial Modeling
Simple excel formulas as sum, product, division, multiplications, paste special, oncatenate
Vlook Up/H look up usage of data
Match Function
Combination of multiple functions in a problem as Vlook +Match, Index+Match, VlookUp and If
CAGR Calculation
Transpose function
Usage of IF function
Table functions
Pivot Tables
IRR Calculation
Cell Referencing
Interest functions as EMI calculator,
Sum if, Count if, Sumifs
SumProduct Functions
Multiple usage of Vlook Function

Module - 2

Advanced Excel & PowerPoint

Once, the basic brushing is done with excel, now comes more complex formulas which help in coming out with meaty results from piles of voluminous data in a matter of seconds.

The focus is to effectively and efficiently utilize Microsoft Excel for data analysis. These include and are not limited to

Combination of multiple functions in a problem as Vlook +Match, Index+Match, VlookUp and If
Offset Function.
Sensitivity Analysis using different ways.
Scenario Manager and how to use that in a model
Iterative calculations. How to Negate it
Using Excel for Statistical Analysis like Correlation, Regression, Variance.
How to summarize data from different sheets and collating them into a single sheet using Indirect function
Charting:

For most of us, charting means making a bar chart or a pie chart for anything and everything. All the meaty results are most effective when they are presented with the right set of charts. What chart to use for a particular data,that is something we teach through charting workshops. And what more, since you have become comfortable with excel, you learn dynamic chart making. These include

Rules of creating a bar chart
Making pictures as linked objects in excel (eg, how to make flags dynamic)
Making apt chart from the data provided
Creating dynamic charts and no need to change the chart every time its prepared
Using Name Manager to make charts dynamic
Showing multiple charts at the same time in same location using filter
Now and Then Analysis chart
Waterfall Charts, Thermometer Charts
How the charts change using sensitivity analysis
Interactivity using Form Controls
Practical Application of Formulas and Charting through Creation of Dashboards
- Delegates learn the gist of excel through creating of a dashboard by applying the excel formulas, making of charts and subsequently making a dashboard for them to present the piece of data in a professional, robust and meaningful manner. This will involves
- Advanced excel formulas
- Conditional formatting
- Developer tabs
- Charting including charting tricks using excel formulas

Power Point Training:
That we are very comfortable making a power Point, is sort of an illusion which most of us have because once in a lifetime whether in school or college or in MBA degree or for any presentation, we have dirtied our hands with PPTs. There is a alarming gap in terms of the skills which in an illusive state you feel you have in a ppt making and actual the standards which are required in corporate professional world outside. Candidates learn the art of following

How every slide should pass a 20 second test
How one has to make meaty slides with fact based representation, proper sourcing of data, effective charts and aesthetic and visual appeal of a ppt
How the analysed data has to be presented in a structured and phased manner
How the flow of a presentation should tell a story

Module - 3

Basic Finance Concepts

Before training you for the rigours of Financial modelling and Valuations, we make you conversant and comfortable with basic finance concepts. These concepts are absolutely critical to mastering any financial and valuation analysis. How to integrate the financial segments. We answer all the rarely answered “WHY” questions—”why do we do this, why do we do that”—instead of answering: “well, just because” or “that’s the way it’s always been done”, we actually clearly and easily explain the logic of why and how not just the what.

Statement of Financial Position, Statement of Income & Expenses, Cash Flow Statement, different adjustments and their importance
Defining inter linking and relationships between the three financial statements and how does the accounting flow amongst them
Ratio Analysis of Financial Statements using major financial ratios including liquidity ratio, asset management ratio, debt management ratio and profitability ratio
How to determine the financial health of a company using multiple ratios
3 Step and 5 Step DuPont Analysis
Margin of Safety analysis, Break Even point analysis
Present Discounted Value of Money (Time Value of Money).

Module - 4

Feasibility Study/Business Modelling

Any Big Project is started with knowing its economic feasibility. Financial Feasibility of Projects are based on capital budgeting techniques and help to solve the financial decisions problems faced by firms.

What you learn:

Benefits of using Net Present Value (NPV) over Internal Rate of Return (IRR) to calculate the financial viability of a project
Building Dynamic Business Models from scratch with Multiple Scenarios using XIRR, MIRR.
How to build assumptions and the rational of taking them before starting your business model
Using different approaches like lowest common denominator and annual equivalency cash flow for determining the value of projects that have different life spans.
Using formulas for the after tax weighted average cost of capital (WACC) and capital asset pricing model (CAPM) and how they used to determine the cost of capital.
Calculation of free cash flows to firm and free cash flows to equity and how they are used to determine the profitability of a project

How to take a decision for a project using different techniques like Data Tables, Scenario Manager, Solver etc

Module - 5

Comparable Company Analysis

Trading Comps is a pricing technique. It is one of the most widely valuation techniques by investment bankers and finance professionals. Under this we would learn how to build a detailed trading comps right from the selection of peers to the analysis of final output. We would also understand how to compare and use these multiples as a valuation technique, what could the possible reason for differences in the multiples and how to tackle those differences etc.

Learn the steps required to construct a meaningful trading comps analyses (enterprise value, latest twelve months numbers, cleaning reported financials, calculate & benchmark multiple)
Impact of convertible securities – options, warrants, RSUs, convertible bonds, convertible preference shares
Treatment of leases (operating and capital), R&D expenses etc.
Possible reasons for why different companies in the same sector are trading at different multiples and how to analyze those differences before jumping on the conclusion that particular stock is undervalued/overvalued
Role of multiples in IPO valuation
Running regression analysis on multiples
How relevance of multiples changes as per industry (i.e. Which multiple is driving price of the peers in the industry)
Why sometime, a high growth company is trading at low multiple compared to less growth company
Why there is difference between multiples of different industries and what drives that difference
How to select peers in case of non-availability of other listed companies in the same space

Module - 6

Precedent Transaction Analysis

Precedent transaction/ deal comps is a variant of trading comps. It is one of three major valuation techniques used by the investment bankers (other than trading comps and DCF valuation). The basic premises of this technique is deal value (i.e. what multiples were offered for other transactions in the past under similar purchasing conditions). Under this technique, we would learn how to calculate transaction multiples, how these multiples are different from one we calculated under trading comps, under what situation this valuation technique is appropriate to apply etc.

Learn the steps required to construct a meaningful transaction comps analyses (enterprise value, latest twelve months numbers at transaction date, cleaning reported financials, calculate & benchmark multiple)
Basic difference between transaction comps and trading comps
Impact of controlling premium on multiples and what is the basis of size of controlling premium
Under what valuation situation transaction comp multiples are appropriate to use

Module - 7

Discounted Cashflow Valuation

Under DCF valuation technique, we try to attach value to the business/asset based upon its fundamentals. This technique is entirely different from relative comps technique as in case of DCF valuation we attempt to find value of asset whereas in relative valuation we try to find price of the asset (driven by demand and supply) which may be substantially different from its fundamental value found under DCF valuation. Under this packet of valuation, we would try to find value of the asset based upon its fundamentals; cash flows, risk, growth, etc.

Projection of detailed free cash flows of the company
What should be the ideal projection period for the target company
How to factor various risks in projections and cash flows
How to switch between currency of projection and its corresponding impact on discount rate
How to calculate WACC if required information is not available
What could be the possible inconsistency in our assumptions while projection cash flows and discount rate and how to fix them
Different ways of calculation of terminal value and their implications on DCF value (EBITDA multiple and perpetual growth methods and their inherent limitations)
Different ways of calculating beta and their implication on WACC and DCF value

Treatment of options differently in DCF valuation from how we treated them in trading comps and why?

Module - 8

Merger Model

Merger model is prepared to find the impact of transaction (merger/acquisition) on the future earnings of the remaining shareholders in the new company after the transaction. Under this we try to find the short term and long term impact of transaction on the future earnings of shareholders (i.e. whether the future earnings of the shareholders would increase or decrease due to this acquisition). Under this we would learn:

How to build a fully integrated merger model to calculate whether the transaction is accretive or dilutive to the shareholders
Impact of stock deal or cash deal on the future earnings of the shareholders of the company
How to factor synergies in the pro forma earnings of new company after acquisition
Refinancing adjustment of existing debt in the target company
Everything about M & A Process
Why we need to learn PowerPoint
Basics of PowerPoint
Learning Letter of interest
Learning Letter of Intent full
Learning Merger Model Basics
Merger Model Files
M & A Notes

Module - 9

Leveraged Buyout

The leveraged Buyout (LBO) refers to the acquisition of a company with a substantial amount of borrowed funds (bonds or loan) to pay for the costs of purchase.

LBO Model (Valuation)
LBO - Transaction assumption
LBO - Debt assumption
LBO - Goodwill Calculation
LBO - Closing Balance Sheet
LBO - Income Statement
LBO - Balance sheet
LBO - CFS
LBO - Key Metrics
LBO Files

Module - 10

Mock Interviews and Resume Edits

An integral and important part of the curriculum is taking mock interview of the candidates and giving them an experience and exposure of the situations he/she might face in real interviews. Stress interviews as they are help candidates and the faculty judge and evaluate and give a clear picture of where the candidate stands and the further action plan required for the candidate to become a refined resource.

TWSS also helps candidates edit their CVs and make it more appealing and professional. A crisp resume goes a long way in creating the first impression in the mind of interviewer about the candidate.

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