Financial Modelling Training Course in Dubai, UAE

Course overview

This course provides an excellent basis for a comprehensive skill set in building financial models in Excel. The three fundamentals are emphasised: building the model, performing the valuation, and assessing the risks. We focus on building a complete corporate model, with the full set of P&L, balance sheet and cash flow statements modelled in detail.

Delegates will learn the analytical method to resolve the circular problem of balancing the P&L and balance sheet. Delegates also learn how to build an acquisition model with detailed timelines for simple, flexible, and dynamic modelling. Valuation modelling is completed for both the corporate and acquisition models. Risk assessment is performed with sensitivity analyses and scenario analysis. We close off the course with the development of the waterfall model for cash flow distribution, which is frequently applied in real estate development projects.

During this course you will be able to master competencies as follows:

• Learn advanced Excel techniques
• Create full financial models by yourself
• Build a complete acquisition model
• Comprehend how you can use all strengths and limitations of financial models
• Master risk analysis skills to execute financial model flawlessly
• Hone the skill to build interactive and dynamic models

Who Should Attend

• Finance directors, managers, analysts, controllers, and account managers
• Chief accountants
• Accounting managers
• Heads of finance departments
• Corporate financiers
• Bankers
• All finance professionals
• Everyone who wants to improve their financial literacy

What will you gain

• Understanding of what a model is, and the limitations of financial models
• Modelling best practices
• A wide array of advanced Excel skills, which are required to build flexible and dynamic financial models
• The ability to build a complete corporate model with the full P&L, balance sheet, and cash flow statement
• The ability to build a complete acquisition model
• Risk analysis skills for your financial model
• The ability to build scenarios for your financial model
• The ability to build dynamic and interactive dashboards
• Understanding of how to model the waterfall cash flow distribution

Course content

• What is a model?
  • Models vs reality
  • Models and the future
  • How can models be used
  • The real power of models
  • The spreadsheet as an excellent tool for modelling
• Modelling best practices
  • Foundation principles
  • The modelling life cycle
  • Structure and practices in spreadsheets
  • Using checks and verification
  • Documentation
• General spreadsheet modelling tips
• Macros in modelling
• Overview of financial model types
• Corporate models (model of a real publicly listed company: PepsiCo)
  • History
  • Common sizing and trend analysis
  • Projecting the P&L (future projections)
• Corporate models (continued)
  • Projecting the balance sheet
    • Analysing historical trends and determining the assumptions
    • Creating the input schedule for the balance sheet
    • Analyse PPE requirements and prepare the depreciation schedule
    • Creating the projected balance sheet
  • Resolving the circularity between the P&L and the balance sheet when debt and interest are modelled
    • Complete the P&L and balance sheet
• Create implied cash flow statement from balance sheet
• Valuation in the corporate model
  • Dividend discount model
    • Steady state firm
    • Growing firm
    • Determining the cost of equity and WACC
    • Valuing PepsiCo using the dividend discount model
  • Discounted cash flow (DCF)
    • Determining the free cash flow for common equity
    • Applying the Gordon terminal value
    • Valuing PepsiCo using DCF
• Acquisition model
  • Accessing historical records
  • Making your assumptions
    • Revenue, gross margins, operating cost, working capital, debt, PPE
    • EV/EBITDA multiple
    • Creating the Input tab
  • Creating flexible and dynamic timelines
  • Completing the P&L to determine PAT
  • Running the debt schedule
  • Running the CAPEX and depreciation schedule
  • Determining the free cash flow to equity
  • Completing the valuation and determining investment returns
• Risk analysis
  • Sensitivity analysis
    • How sensitivity analysis techniques can be used for optimisation
• Risk analysis
  • Sensitivity analysis (continued)
    • Selecting parameters of concern in the risk analysis
    • Performing sensitivity of outputs to varying levels of the risky input parameters, using 1-way or 2-way data tables in Excel
• How sensitivity analysis can be used to check your model and uncover major errors
  • Fixing a major error in the corporate model
• Scenario analysis
  • Considering the input parameters that will constitute the scenario space
  • Determine the scenarios that will reasonably cover the scenario space
  • Incorporating the scenarios into the model
• Preparing the interactive and dynamic dashboard
  • Dynamic and flexible scenario analysis
  • Dynamic project lengths
  • Setting up dynamic ranges to allow the addition of scenarios with extra effort
• The waterfall method of cash flow distribution (especially for real estate development projects)