Sample syllabus: 2-Day financial modeling course for MBA students
Topic 1: Building an Integrated Cash Flow Model
- Introduction to cash flow modeling
- Understanding the links between the financial statements
- Understanding circularity
- Setting up and formatting the model
- Selecting model drivers and assumptions
- Modeling and projecting the financial statements
- Projecting the income statement
- Projecting the balance sheet
- Projecting the cash flow statement
- Creating the debt and interest schedule
- Revolver modeling
- Analyzing and concluding the model
- Analyzing the output
- Stress testing the model
- Fixing modeling errors
- Using the model to create a Discounted Cash Flow (DCF) Analysis
Topic 2: Leveraged Buyout (LBO) Modeling
- Introduction to LBO modeling
- Introduction to Private Equity
- Understanding leverage
- Uses for the LBO model
- Transaction assumptions and Sources and Uses
- Creating the pro forma balance sheet
- Analyzing, utilizing and understanding the LBO model
- IRR to the financial sponsor/private equity firm
- Using the LBO analysis as a valuation methodology
- Analyzing key credit statistics
Topic 3: Accretion/Dilution (M&A) Modeling
- Introduction to M&A
- Why do firms make acquisitions?
- Synergies
- Understanding Earnings Per Share (EPS)
- Modeling pro forma EPS
- Analyzing accretion/dilution
- Discussion of a "full-blown" merger model