Curriculum
1.1 Global investment banking overview, preparation and analysis of financial statements
- Understanding global investment banking roles and skills required
- Senior investment banker introduction and understanding of delegates background
- Preparing Income, Cash Flow statements and Balance Sheet
1.2 Analysing the financial statements from the eyes of the following roles
- Private Equity and Leveraged Buyout
- Mergers & Acquisitions (M&A)
- Equity Research, Debt Syndication and Project Finance
- Executive Management
- Analyse performance, efficiency and capital markets
- Basics of capital investment techniques (NPV, IRR, cash returns and payback)
1.3 Application on London stock exchange (LSE), NYSE and NASDAQ listed companies
1.4 Global investment banking process and style module (Pitch, preparation, presentation and writing confidential investment memo and teasers)
- Data collection
- Use of databases
- Preparation of real company pitch and teaser
- Preparation of confidential information memorandum (CIM)
- M&A/sell-side process
- Private equity/buy side process
1.5 Application on one London stock exchange (LSE) listed company and one private (non-public) company
1.6 Discussion on frequently asked questions (FAQs) on this topic by Investment Banks and Private Equity firms
2.1 Fundamentals of valuation, trading comparables valuation and Financial Modelling of Trading Comps
- Fundamentals of valuation
- Equity value
- Enterprise value
- Calculation of diluted shares outstanding
- Normalizing the numbers
- Latest/trailing twelve months
- Calendarization of different reporting months
- Selecting a peer group of comparable companies
- Gathering the information on the peer group
- Benchmarking the comps
- Determining valuation
2.2 Application on at least four public stock exchange listed companies and one private company
2.3 Discussion on frequently asked questions (FAQs) on this topic by Investment Banks and Private Equity firms
3.1 Discounted cash flow valuation and Financial Modelling
- Determine key performance drivers of the company
- Calculating free cash flow to equity holders
- Projection of sales, EBITDA, EBIT and EPS for 5/10 years
- Projection of tangible and intangible assets
- Projection of capital expenditure and net working capital
- Calculating industry practiced other assets and liability
- Determining the weighted average cost of capital (WACC) of public listed and private companies
- Determining terminal value by
- Exit multiple method
- Perpetuity growth method
- Sensitivity and scenario analysis of WACC, sales and enterprise value of the company
3.2 Financial modelling on LSE, NYSE and NASDAQ listed company and best global investment banking Excel financial practices
- Overview of best investment banking practices for financial modelling
- Setting up the model for historic and 5 years projections
- Preparation of Income and Cash Flow statements and Balance Sheet
- Industry accepted assumptions and their logic for sales growth, COGS, EBITDA, working capital and Capital expenditure
- Depreciation and amortization of assets
- Forecasting net working capital and its importance in valuation
- Preparation of Debt, Interest and Cash sweep function
- Shareholder’s equity schedules
- Integration of Cash Flow, Income Statement and Balance Sheet
- Comparing your per share price valuation with real-time market price to recommend Buy/Hold/Sell the share
- How to handle circularity and referencing in financial modelling
3.3 Application on one London stock exchange (LSE) listed company, two New York Stock Exchange (NYSE) listed companies and one private company
3.4 Discussion on frequently asked questions (FAQs) on this topic by Investment Banks and Private Equity firms
4.1 Determining Transaction Premium (Transaction Comps), Leveraged/Management Buyout (LBO) and Financial Modelling
- Selecting a peer group based on market conditions and deal dynamics
- Gathering the information
- Purchase consideration (Cash/Stock or both)
- Spreading the numbers in financial model
- Benchmark and determine the premium
- Adjustment of synergies in the transaction premium
- Characteristics and economic of LBO
- Financing mix of the transaction
- Credit ratios and investment maximization
- Exit strategies by private equity players and value measurements of the investment
4.2 M&A transactions pro-forma and leveraged buyout modelling
- M&A accretion and dilution (A-D) modelling
- Calculation of pre and post tax synergy in A-D analysis
- Income statement impact
- Balance sheet and credit rating impact
- Leveraged buyout investment return analysis (Cash returns & IRR)
- Modeling of all stakeholders (Financial sponsor, Lenders and Seller) in LBO
- Technical writing and communication
4.3 Board presentation of the investment banking transaction
4.4 Discussion on frequently asked questions (FAQs) on this topic by Investment Banks and Private Equity firms
*Specialist pathways require a minimum cohort size of 20 students.
Who can participate?
Credit Analysts, Market Analysts, Associates, Bankers, Investment Analysts, Strategists, Policy Makers, Fund Managers and, Senior Bankers.
Assessment
There are no formal examinations required for this course. Assessments are undertaken in various ways:
You will be required to work in your own time to complete research, homework tasks or group work. Self-study is vital to your success on this course and lecturers will give you guidance on how best to approach this throughout the study period.
