Course Overview
This intensive 6-day training provides a comprehensive quantitative representation of a company’s present and future business operations. It is designed to equip participants with the skills to assess project viability from the ground up—starting with the key features of financial feasibility studies and moving into building robust financial models in Excel. Participants will master everything from basic financial statements to advanced valuation techniques such as Discounted Cash Flow (DCF) and Weighted Average Cost of Capital (WACC), enabling them to develop adaptable models for real-world decision-making.
Course Objective
By the end of this training, participants will be able to:
- Conduct thorough financial feasibility studies using industry-standard tools like NPV and IRR.
- Build accurate, step-by-step financial models in Excel, including forecasted Income Statements, Balance Sheets, and Cash Flow statements.
- Apply advanced valuation techniques and understand the impact of tax computations, shareholdings, and dividends on a model.
- Implement quality control checks and sensitivity analysis to ensure model reliability and accuracy for stakeholders.
Benefits of this Training/Course
- Practical Hands-On Skills: Learn to construct financial models from scratch through step-by-step Excel training.
- Enhanced Decision-Making: Gain deep insights into profitability and valuation methods to inform project investments.
- Professional Mastery: Acquire advanced Excel techniques used globally in project management and financial consulting.
- Comprehensive Knowledge: Understand the intersection of accounting profits, taxable profits, and asset management.
- Data-Driven Proficiency: Become equipped to present well-rounded feasibility studies and data-backed business cases.
Course Includes
- Comprehensive training materials and specialized Excel templates.
- Practical exercises based on real-world case studies.
- Expert-led interactive sessions with live model-building demonstrations.
- Q&A and mentoring opportunities with the course instructor.
- Certificate of completion from the Center for Policy and Economic Research (CPER).
- Networking opportunities with industry peers and post-training support.
Course Outline
Day 1:
A. Introduction to Project Feasibility Studies
• Overview of Feasibility Studies: Importance, Scope, and Objectives.
• Key Components of Feasibility Studies in Project Management.
• Case Studies: Examining Successful Feasibility Studies and Lessons Learned.
B. Fundamentals of Financial Analysis
• Due Diligence Techniques and Discounted Cash Flow (DCF) Basics.
• Key Tools: Net Present Value (NPV) and Internal Rate of Return (IRR).
• Practical Exercises: Step-by-step NPV and IRR calculations for project evaluation.
Day 2:
C. Income Statement
• Understanding the first step in building any financial model.
• Key components of an income statement.
• Proper order of items for clarity and accuracy in the model.
D. Introducing a Cash Calculation
• Importance of cash flows and distinguishing them from accounting profits.
• How to calculate cash flows accurately in Excel?
• Handling interest calculations without circular references.
• Time-weighted average cash calculations.
• Types of debt used by companies and their implications on cash flow.
Day 3:
E. Fixed Assets
• What are fixed assets, and why is depreciation used?
• Calculating depreciation using straight-line and reducing balance methods.
• Approaches for creating fixed asset models with limited data.
• Methods for calculating alternative fixed asset figures when more data is available.
F. Balance Sheet
• How to build a forecasted balance sheet in Excel?
• Utilizing backing schedules to forecast receivables, payables, and inventory.
• Using ratios to forecast financial elements and avoid errors in the model.
Day 4
G. Tax Computations
• Difference between accounting and taxable profits.
• Steps for adjusting from accounting to taxable profits.
• Capital allowances and how to handle tax losses.
• Deferred tax computations and provisions.
H. Shareholdings, Dividends, and Goodwill
• Overview of different types of shares and their implications for dividends.
• Calculation of dividends for preference and ordinary shareholders.
• Understanding how goodwill arises and how it is treated in various tax jurisdictions.
Day 5
I. Sensitivity Analysis
• What is sensitivity analysis, and how to apply it to financial models.
• Importance of model structure before applying sensitivity analysis.
• Incorporating inflation factors and handling changes in model assumptions.
• Best practices for updating input references in Excel.
J. Discounted Cash Flow (DCF) Valuation
• Theory behind DCF valuation and its significance.
• Key challenges and assumptions in DCF models.
• How to calculate a company’s valuation using DCF in Excel?
• Incorporating multiple tools for a more accurate valuation.
Day 6
K. Weighted Average Cost of Capital (WACC)
• Understanding the components of WACC: cost of debt, equity, and preference shares.
• How to calculate WACC using market values.
• Application of WACC in acquisition models and forecasting.
L. Quality Control
• Critical importance of quality control in financial modeling.
• Methodologies for running quality control tests on models.
• How to present and verify sector-specific models for accuracy.