Corporate Finance and Valuation

Our corporate finance and valuation courses are grounded in accepted finance theory but the emphasis is on practical application, embracing the latest market data and relating to the current economic environment.

We believe that combining theory and practice encourages rigorous analysis and robust solutions.

Below is the outline content of a typical course programme in corporate finance. Our courses, however, are tailored to a customer’s specific needs, balancing educational effectiveness, logistical constraints and cost.

Course programmes are tailor-made in terms of structure, and content.

The structure of courses will differ in terms of the overall length, varying from a few days to a longer integrated modular programme with or without pre-course or post-course work.

The content and sequencing of topics will reflect the level of participants’ experience and seniority and will typically incorporate in-house material and case studies.

Corporate Finance and Valuation – Typical Course Content

Click on the buttons to find out more

Introduction

Introduction
  • Overview of course and content
  • Current issues, developments and controversies

Corporate Finance Quiz

Corporate Finance Quiz
  • To raise issues and terminology

Key Concepts in Finance

Key Concepts in Finance
  • Risk, return and cost of capital (1)
    • equity risk measures, Beta
    • understanding sector risk
    • calculation of Beta
  • Risk, return and cost of capital (2)
    • equity return and cost of equity
    • tax-sheltered cost of debt
    • WACC
    • impact of gearing on WACC
    • corporate uses of WACC
  • Capital structure
    • Modigliani and Miller
      • effect of high and low gearing
      • tax shield and financial distress
    • financial risk and business risk
    • cash flow and asset quality
    • impact on WACC and value
    • optimal capital structure
    • geared and ungeared Betas
    • *exercises

DCF valuation principles

DCF valuation principles
  • Review of project appraisal
  • Discounting techniques and Issues; NPV, IRR
    • identifying and forecasting cash flows
    • growth and risk
    • perpetuity cash flow
    • terminal values
    • geared and ungeared valuation
    • common mistakes and errors
  • *exercises

Cash Flow Forecasting

Cash Flow Forecasting
  • Cash Flow Summaries for Analysis
    • the starting point for forecasting
    • trends in surplus and cash flow
  • “Free Cash Flow” for Valuation
  • Sustainable Cash Flow
  • *exercises

Valuation Multiples

Valuation Multiples
  • Methodology
  • Non-financial multiples
  • Sales and asset multiples
  • PE, EBIT and EBITDA multiples
  • Sustainable cash flow multiples
  • Interpreting multiples
  • Peer group analysis
  • Selecting comparables
  • *exercises

Shareholder Value

Shareholder Value
  • The terminology
  • The underlying logic
  • Practical application
  • *exercises

Valuation Case Study

Valuation Case Study
  • An acquisition target
  • An MBO candidate

MBO Funding

MBO Funding
  • Structuring leverage deals
  • Use of mezzanine/high yield
  • Required equity returns
  • Use of cover ratios

Acquisition Funding

Acquisition Funding
  • Equity returns and constraints
  • Debt requirements and constraints
  • Determining optimal funding

Funding Case Studies

Funding Case Studies
  • An acquisition
  • An MBO