Core Comprehensive
Utilizing the same case study based approach delivered for our corporate clients, these courses provide hands-on, real world, practical applications of the standards and methods that a professional needs.
Participants who choose to attend all courses will blend accounting, finance, and Excel skills into the “from scratch” construction of the major valuation models (three statement, M&A, and LBO).
Led by our experienced instruction team of former practitioners, you get a unique blend of industry insight combined with a passion for teaching. The average TTS instructor has been part of the team for 8.5 years.
What you will learn?
- Excel Best Practices and Efficiencies
- Financial Modeling
- Comparables Analysis
- Discounted Cash Flow
- Merger Consequences Analysis
- Leveraged Buyout Analysis
Financial Modeling & Advanced Sensitivity Analysis
Overview and Introduction to Financial Modeling
Excel Best Practices and Efficiencies
Construction and Application of:
- Core statements
- Working capital schedule
- Depreciation schedule
- Amortization schedule
- Other long-term items schedule
- Equity schedule
- Debt and interest schedule
Troubleshooting the Model:
- Understanding and controlling for circular references
- Balancing the model
- Making the model “deal ready”
Utilizing the Finished Product:
Advanced Sensitivity Analysis:
- Adding scenarios to the model
- Creating a toggle for cases and naming cells
Public & Acquisition Comparables and Discounted Cash Flow Analysis
Overview of valuation methodologies and fundamental concepts
Public Comparables Analysis:
- Choosing the appropriate peer group
- Gathering public information
- Calculating market and enterprise value
- Normalizing for non-recurring items
- Calculating latest twelve months (LTM)
- Calculating relevant multiples
- Deriving an implied valuation range
- Analyzing multiples and a comparables universe
- Exercise: “Spreading public comparables” for the case company
Overview of Acquisition Comparables Analysis:
- Choosing the appropriate deal list
- How control premiums and synergies impact multiples
- Sources of public information
Discounted Cash Flow Analysis:
- Strengths and considerations of a DCF analysis
- Deriving a weighted average cost of capital (WACC)
- Discounting unlevered free cash flows
- Estimating the terminal value (exit multiple vs. perpetuity growth rate approach)
- Determining the valuation range based on DCF analysis
- Exercise: Adding DCF output to a 3-statement model for the case company
Analyzing Results:
- Imputing valuation ranges
- Analyzing a “Football field” for the case company based on different valuation methodologies
Merger Consequences Analysis
- Concept of affordability analysis
- Purchase accounting overview
- Creation of goodwill and write-ups, including possible incremental D&A
- Opening balance sheet and purchase accounting adjustments
- Pro forma income statement
- Accretion/dilution analysis
- Credit rating considerations
- M&A transaction considerations(stock vs. cash, social issues, etc)
- Asset vs. stock purchase
- Tax deductibility of goodwill
- Section 338 election
- Exercise: Building an M&A model for a potential acquisition of the case company
Leveraged Buyout Analysis
- What makes a good LBO candidate?
- Concept of value creation via de-leveraging, operational improvements and “multiple expansion”
- Sources of funding for an LBO
- Differing viewpoints for LBO constituents
- Purchase price determination
- Debt capacity and financing options (Pro rata facilities, institutional facilities, mezzanine capital)
- Sponsors equity and internal rate of return (IRR)
- Mechanics of constructing an LBO model
- Exercise: Constructing an LBO model for the case company