Advanced Corporate Finance and Valuation Excellence with Dr. Edward Bodmer

April 22-23, Bengaluru | April 25-26, Mumbai

Overview

Practical techniques to develop better valuation analysis with more flexible, accurate and structured models.

Developing an efficient and accurate valuation model that is theoretically valid, well structured, flexible and accurate is essential for any professional in finance. Unfortunately, many corporate finance models are biased, clumsy and inflexible rendering the whole valuation process at best meaningless. Taught by Edward Bodmer, a global leader in financial modelling, the intensive 2-day modelling valuation and modelling program will inform finance executives, accountants, financial consultants, and investors on innovative valuation and modelling techniques.

Benefits of Attending

Why You Should Attend?

  • • Understand the theoretical issues with structuring of corporate models, development of assumptions, computation of rate of return on invested capital, risk analysis, valuation formulas, capital structure and other issues
  • • Create a structured corporate model that uses and updates historic information in a flexible manner and allows efficient statistical analysis of assumptions

Who Should Attend?

  • • Equity research professionals
  • • Corporate Financial Officers
  • • GM/VP/AVP/Manager M & A
  • • CFOs, Treasurers and Senior Finance Executives
  • • Executives of M&A Team
  • • Directors of Strategic Planning
  • • Commercial Bankers
  • • Investment Bankers
  • • Portfolio Managers -Corporate Restructuring

Agenda

Session 1: Creating an Efficient and Well-Structured Corporate Model
  • A review of model objectives, model structure and flexible using examples of completed models that will be used as references throughout the training.
  • Development of historic/projected timing switches that allow you to add new historic financial statements to a model and efficient ways to add historic data to a model
  • Setting up assumptions for variables that vary over time and scalar variables that remain constant and that compare historic levels with projected values and facilitate statistical analysis of the assumptions
  • Computation of revenues, operating expense, capital expenditures, pre-tax cash flow, free cash flow and from operating assumptions and computation of return on invested capital using the financing and direct approaches
  • Case Study of HT Media – Uploading Data and Creating Assumptions
Session 2: Enterprise Valuation from Corporate Model and Financial Statements
  • Development of enterprise valuation analysis that allows for flexible start dates; flexible terminal dates and holding periods; and different terminal valuation approaches.
  • Calculation of financial statements through adding financial routines with a cash flow waterfall to the model in debt and cash balance schedules and using the model to establish a target capital structure.
  • Illustration of complexities in corporate models related to asset retirements, income taxes, minority interest and capital expenditures.
  • Case Study of HT Media – Problems with Financial Models 
Session 3: Innovations in Corporate Finance Theory
  • Solution to IRR problem of re-investment and ranking with Weighted Average IRR 
  • Computing Cost of Capital with Market to Book Regression Rather than CAPM 
  • Demonstration of Flaws in Value Driver Formula: V=Income x (1-g/ROI)/(COC-g)
  • Correct Evaluation of WACC using Tax Shield from Interest Expense
  • Use of Credit Spread to Derive Debt Beta and More Properly Derive Unlevered Beta
  • Evaluation of Terminal Value Adjustments for Capital Expenditures, Working Capital and Deferred Tax that Depend on Growth
  • Adjustments to Free Cash Flow and EV to Enterprise Value Bridge for Deferred Tax, Warranty Cost and Other Items
  • Development of Terminal Valuation Techniques for Financial Institutions that Use Market to Book Ratio and ROE from Financial Models
  • Evaluation of Political Risk Premiums from Computing Implied Probability of Default 
Session 1: Valuation Using Corporate Model
  • Demonstrate financial theory associated with multiples, terminal value and credit analysis using financial models.
  • Demonstrate variability in enterprise value and use of the return on invested capital to evaluate the reasonableness of the EBITDA assumptions.
  • Development of normalised working capital changes, normalised depreciation expense, normalised capital expenditures and normalised deferred taxes that vary as a function of different terminal growth rates and incorporate derived historic growth rates. 
Session 2: Advanced Valuation and Multiples
  • Computation of P/E and EV/EBITDA multiples from growth rates, cost of capital, returns, tax rates and asset life as well as transition periods of each value driver and demonstration of problems with the (1-g/ROIC)/(WACC-g) formula.
  • Evaluation of which balance sheet items should be included in the bridge between equity value and enterprise value through creating long-term models that prove whether items should be included in free cash flow or as an adjustment to enterprise value.
  • Calculation of value from equity cash flow rather than free cash flow and derivation of equity multiples (P/E or market to book) to evaluation how multiples are affected by return and growth forecasts in the model
Session 3: Innovations in Corporate Modelling
  • Use of Historic Switch to Make Incorporation of New Financial Statements
  • Evaluation of ROIC and Invested Capital Using Switches and SUMPRODUCT
  • Development of INTERPOLATE Function to Evaluate Assumptions
  • Automation of Scenario Analysis with Scenario Reporter
  • Effective Automation of Historic Data Graphs with Flexible Spinner Box 
  • Resolution of Circular References Related to Interest Expense and Taxes
  • Deprecation Techniques that Account for Changing Growth and Implied Retirements
  • Development of Techniques to Automate Constant Capital Structure in Financial Models
  • Dynamic Goal Seek Functions for Evaluation of Cost of Capital Using P/E Ratios
  • User Defined Functions for Computing Stable Capital Expenditures to Depreciation and Other Items 
Session 4: Innovations in Corporate Data Analysis
  • Creation of techniques to download stock price data, financial statement data and economic data
  • Stock price database that allows you to evaluate IRR’s, volatility and beta for stocks, stock price indices, economic series and commodity prices.
  • Financial Database that allows you to extract and evaluate financial data, financial ratios, and cost of capital across companies.
  • Extraction of Data that Enables you to have Historic Basis for Creating Financial Models.
  • Interest Rate, Exchange Rate and Commodity Price Databases that Include Historic Evaluation of Term Structures, Volatility and Other Statistics. 
  • Comprehensive Country by Country Database to Evaluate Growth and Risks Across the World.
     

Faculty Profile

Edward Bodmer is an internationally recognized authority with 28 years’ experience in financial/valuation modelling, project finance, investment, credit, and he has played a key role restructuring complex financial projects across Asia, Middle East and Europe.

REGISTRATION DETAILS


  • *Offered Price +18% GST
  • Total number of seats

    Standard Fees

  • INR 45,000
  • 1
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    Gold Package

  • INR 86,000
  • 2
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    Diamond Package

  • INR 1,20,000
  • 3
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*Only one offer will be valid at a time. For any query, please reach us at training@vccircle.com, +91-9560888566 / +91-120-4171111

Cancellation Policy:

Refund and Substitution Policy (Differ from one programme to other, please read carefully): No refunds will be granted for cancellations made within 15 days of the workshop. Those delegates, who have confirmed and do not attend, are liable to pay the full course fee and no refunds will be granted. Cancellation fee of 50% will be applicable 30 days prior to the workshop. Cancellation fee of 25% will be applicable up to 45 days prior to the workshop. Company reserves the right to amend content, expert, policy, venue & date(s) of the workshop. Participants will be refunded the registration fee in full in case the workshop gets cancelled. In case of refunds or cancellation mentioned above - the inward and outward Forex transaction cost (s) and currency fluctuation differential will be charged while accounting for the refund. Company assumes no liability for any costs including transportation, hotel reservations or any other costs incurred by participants in the event of cancellation.

Substitution Policy:

Substitutions within a company are permitted through the workshop/training date, request must be by email to training@vccircle.com

PARTNER

Outreach Partner

Delhi

17, Okhla Industrial Estate,
Phase 3,
New Delhi - 110020
+91- 011-49711180
+91- 011-68132900
training@vccircle.com

Mumbai

61-A, 2 North Avenue Maker Maxity,
Bandra Kurla Complex,
Bandra (East), Mumbai City,
MH 400051
+91-22 61456100
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Bengaluru

No.43 Residency Road, Shanthala
Nagar,
Ashok Nagar, Near Gateway Hotel,
Bangalore - 560025
+91-80 69405500
training@vccircle.com