Self-Study Courses

Ten Ways to Cook the Books

• Overview of importance of accounting, accounting as a performance metric and discussion of stakeholders involved
• Accrual concept of accounting, revenue recognition and matching principle
• Classification and construction of financial statements
• Comprehend the basic concepts underlying the Income Statement and Balance Sheet and their relationship
• Ten ways to cook the books, significance of & how to spot them from a financial point of view; how to:
  • Overstate revenue and prematurely recognize income
  • Distort performance measurement by including non-recurring items
  • Manipulate and decrease expenses and distort profit
  • Fail to recognize losses through write-offs and allowances
  • Use LIFO/FIFO accounting methods to manipulate profits and inventories
  • Analyze off-balance sheet items such as operating (and capital) leases to distort debt and profitability
  • Over / under - value marketable securities to distort profitability
  • Hide pension expenses and create phantom income
  • Manipulate cost vs. equity accounting methods and minority interest overview
  • Manage earnings by modifying reserve valuation estimates

Detailed Income Statement review, including definition, significance and application of:

• Revenue, COGS, Gross Profit, SG&A, Operating Income (EBIT) & EBITDA
• Interest Expense and Income, Pre-Tax Income, Taxes (Current & Deferred)
• Net Income, Shares Outstanding (Basic and Diluted), Earnings per Share

Detailed Balance Sheet review, including definition, significance and application of:

• Current Assets (Cash, Inventories, Accounts Receivables, Pre-paid Expenses),
• Fixed Assets (PPE), Long-Term Assets (Equity Investments)
• Goodwill and Intangibles
• Current Liabilities (Accounts Payable and Deferred Revenue)
• Long-Term Liabilities (Debt and Capital Leases)
• Minority Interest
• Equity (Common Stock, Additional Paid in Capital, Retained Earnings, Treasury Stock and Other Comprehensive Income)
• Review of working capital and understanding its impact on a business and cash flow
• Understand how depreciation, amortization and other non-cash expenses are accounted for and how they impact the financial statements

Detailed Cash Flow Statement review, including definition, significance and application of:

• CFO: Cash Flow from Operations (Net Income, Depreciation & Amortization, Changes in Working Capital)
• CFI: Cash Flow from Investing (Capital Expenditures, Acquisitions, Divestitures)
• CFF: Cash Flow from Financing (Dividends, Stock Issuances, Repurchases, Debt Borrowings & Paydown)
• Understand why the Cash Flow Statement is the "ultimate balancer and equalizer"
• Appreciate the information content of the Income Statement, Balance Sheet and Cash Flow Statement and their inter-relationships
• Analyze financial statements from a high-level context and how to spot inconsistencies on the Income Statement and Balance Sheet ("cooking the books") that cannot be hidden on the Cash Flow Statement ("cash is king"—can't hide cash or lack of cash)
• Understand the process by which an entity's financial activities ultimately get reflected in its financial statements

Wrap-up & Summary

• Begin hands-on, interactive case study creating major financial statements
• Modify and enhance case study by interjecting ways to "cook the books" and analyzing the results
• Continuation, analysis and wrap-up of hands-on, interactive case study
• Conclusion of case study demonstrating, illustrating and highlighting all key discussion points, definitions and examples
• Discussion of deferred tax liabilities and deferred tax assets; permanent vs. temporary differences and effect on effective tax rates
• Review of important financial and accounting ratios
• Compute, compare and contrast performance measures (internal liquidity ratios, asset management and efficiency metrics, profitability measures, external liquidity statistics and debt management)

Prerequisites:

• Desire to learn accounting terminology, general business smarts and common sense

Video Length / Estimated Total Course Time: 11 hours / 16 hours

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Similar to the Accounting Boot Camp above, this program covers the basics of financial accounting including the major financial statements (Income Statement, Balance Sheet and Cash Flow) and the most important components of each as it relates to financial analysis. Concentration is placed on the integration of the financial statements and provides a full integrated grasp of accounting from a finance perspective.

Financial Statement Analysis

• Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
• Components of each major financial statement
• IS: Revenue and expense items, EBITDA defined and discussed
• BS: Assets, Liabilities, and Shareholders' Equity
• CF: Cash Flow from Operations, Investing Activities and Financing
• Understand how financial statements are inter-related
• Relationship between the Income Statement and Cash Flow Statement
• Explanation of Accrued Expenses, Receivables and Payables and how they tie together

Key Ratios

• Overview and explanation of major financial ratios, including liquidity, asset management, debt management, profitability, and market value ratios

Hands-On Exercise

• Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive

Prerequisites:

• Desire to learn accounting terminology, general business smarts and common sense

Video Length / Estimated Total Course Time:

• 2.5 hours / 4 hours

Individual Course Price:

• $100
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"How to Analyze a 10K" builds upon basic accounting and financial statements concepts to focus on the major components of a 10K SEC filing, including the Management Discussion & Analysis, Financial Condition and Results and how to analyze the myriad of footnotes.

It's simply not enough to merely analyze the financial statements, but especially critical to plow through and understand the footnotes and the management discussion & analysis, where the most of the qualitative information is contained. The challenge is that there are a myriad of footnotes and figuring out which are the important and relevant ones is no small feat. This course provides the overview and analysis for most major common footnotes and gives you a starting point to plow in deeper when we build our financial models. The irony is that in the process of crunching numbers and building numbers, reading comprehension, particularly on the 10K is probably even more important in terms of getting the right inputs.

Overview & Analysis

• What is a 10K and how is it different from an Annual Report?
• Major components of a 10K filing
• Detailed discussion on the MD&A section (Management Discussion & Analysis)
• Detailed discussion of all major footnotes and how to analyze and interpret major categories of footnotes: general footnotes, Balance Sheet footnotes, contingencies footnotes, Income Statement footnotes, Capital Structure footnotes, many other footnotes
• Brief discussion of Proxy statement and its utility
• Brief discussion and introduction to differences between US and International GAAP

Hands-On Exercise

• Interactive group project break-out to analyze, compare and contrast 10K's of various companies
• Concentration on: revenue terminology differences, balance sheet analysis, cash flow analysis, analysis and comparison of footnotes, MD&A / segment breakdown and discussion

Prerequisites:

• Desire to learn finance terminology, general business smarts and common sense

Video Length / Estimated Total Course Time:

• 2 hours / 3 hours

Individual Course Price:

• $100
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Learn the basic finance concepts that are the backbone of any financial analysis. An understanding of these basic core tools is absolutely critical to mastering any Wall Street analysis. Topics covered include risk / return trade-offs, time value of money, cost of capital, Gordon growth model and basic valuation theories.

Moving beyond the accounting and 10K analysis, this course provides an introduction to the major concepts in finance that many people take for granted. Understanding financial modeling, valuation, and the capital markets in general would be difficult without a full grasp of these fundamental concepts.

Finance 101

• Risk / Return: Calculating returns and measuring risk, benefits of diversification (systematic and unsystematic risk, total risk, market risk and firm-specific risk), security market line, capital asset pricing model, beta
• Time Value of Money: present and future values, net present value, internal rate of return, compounding, discounting, uneven cash flow streams, simple vs. effective rates, periodic rates, CAGR (Compound Annual Growth Rates)
• Basic Valuation Theories: value of any asset, dividend discount model (theory only!), Gordon growth model, growing perpetuity
• Cost of Capital: sources of capital, component costs, weighted average cost of capital

Prerequisites:

• Desire to learn finance terminology, general business smarts and common sense

Video Length / Estimated Total Course Time:

• 1.5 hours / 2 hours

Individual Course Price:

• $100
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Company profiles are the most basic overview and descriptions of a company being analyzed. Profiles supply the most basic and fundamental, yet probably the most important aspects of a company. Gain an introduction and explanation of the major components of a profile for a publicly traded company.

Company Profiles

• Summary business description and financial summary and trading analysis
• Stock price charts: price / volume graphs, indexed stock price history, moving averages, shares traded at various prices, forward PE history, historical EBITDA multiple valuation trends, beta and volatility, management and Board of Directors biographies, ownership analysis

Prerequisites:

• Desire to learn finance terminology, general business smarts and common sense

Video Length / Estimated Total Course Time:

• 1 hour / 1 hour

Individual Course Price:

• $50
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Build very quick financial summary and trading statistics exhibit using historical results, analyst estimates & basic assumptions in Excel. This course will allow you to understand basic structure of building an analysis in Excel and navigating through and becoming efficient in Excel.

Financial Summary

• Build a very simple financial overview exhibit by inputting historical results, analyst estimates and basic projections.

Trading Statistics

• Build trading statistics exhibit displaying standard market valuation multiples.

Prerequisites:

• Accounting & Financial Statements Integration
• Finance 101: Introduction to Finance
• Corporate Valuation Methodologies
• Prior experience with Excel, decent ability to type and follow instructions

Video Length / Estimated Total Course Time:

• 1.5 hours / 2 hours

Individual Course Price:

• $100
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Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

Valuation Methodologies

• How much is a company worth? Why is the current stock price not an accurate indication of value?
• How do you tell if a company is under-valued or over-valued?
• Why would one company command a higher or lower premium than its direct competitor?
• What is the importance between enterprise value and equity value?
• Why do we include minority interest and exclude capital leases?
• What is the relevance of capital structure and leverage on a companys value?
• Why and how is corporate finance so critical to managing a firm's profitability?
• What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
• Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
• What is EBITDA and why is it so important?
• Utilizing the correct numerator for multiples analysis
• Calculating implied value based on multiples analysis
• What is a leveraged buyout and what are the main motives for LBOs?

Case Study Discussion

• Analysis of "football field" and reference ranges
• Detailed discussion of the major valuation methodologies, their nuances and application in the real-world
• Analyzing, comparing and contrasting trading comps, deal comps and premiums paid
• Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
• Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
• Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)
• How do you approach valuing a company with completely disparate businesses?

Hands-On Exercise

• Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive

Prerequisites:

• Accounting & Financial Statements Integration
• How to Analyze a 10K
• Finance 101: Introduction to Finance

Video Length / Estimated Total Course Time:

• 2 hours / 2.5 hours

Individual Course Price:

• $150
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This course builds upon, and implements in Excel, the fundamental financial analysis and valuation topics. Create a top-down, five year income statement projection model and then construct a basic discounted cash flow analysis on top of your projection model.

** Don't get thrown off by the word "basic"—this Basic Financial Modeling serves as the fundamental basis for all of our additional Excel-based courses. Before you "graduate" onto our advanced modeling courses, we HIGHLY recommend you take this course for the full background on working efficiently in Excel the way we want you to, otherwise you may have a much steeper learning curve in our other classes. **

Income Statement Projection

• Input historical financial results and recast as necessary
• Calculate historical growth rates and margins which serve as the basis for your projection assumptions
• Calculate your projected profitability from revenue down to EPS
• Learn the correct way to calculate diluted shares outstanding
• Brief discussion and introduction to differences between U.S. and International GAAP

Discounted Cash Flow Analysis

• How is a discounted cash flow analysis actually constructed?
• What is the difference between the terminal value and perpetuity growth approaches and what are the implications on value?
• Learn subtle nuances including the proper figure for "cash flow" in perpetuity growth models

Prerequisites:

• Accounting & Financial Statements Integration
• Finance 101: Introduction to Finance
• Corporate Valuation Methodologies
• Company Overview

Video Length / Estimated Total Course Time:

• 4 hours / 5 hours

Individual Course Price:

• $150
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Build upon Corporate Valuation Methodologies with a short, hands-on exercise to hone in the core concepts in practice before diving into the more advanced valuation modeling topics. Translate the valuation concepts into real-life case study that demonstrates and shows the valuation principles.

• Calculate current trading and valuation statistics of industry competitors
• Project value of a company and stock based on estimated industry average valuation multiples
• Construct a sample DDM and DCF valuation analysis
• Estimate WACC, component costs of capital and CAPM and incorporate into valuation analysis

Prerequisites:

• Accounting & Financial Statements Integration
• Finance 101: Introduction to Finance
• Corporate Valuation Methodologies

Video Length / Estimated Total Course Time:

• 1.5 hours / 2 hours

Individual Course Price:

• $150
• Register Now

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Build a fully integrated 5-year financial statement projection model by projecting the Income Statement, Balance Sheet, Cash Flow Statement, the Debt Sweep to balance model and Interest Schedule. This course will allow you to have a complete financial model projecting run-rate profitability, on which you can easily layer valuation and merger models.

5-Year Financial Statement Projection Model

How do you project a company's Income Statement from revenues and expenses down to Net Income?

What are the different methodologies to forecasting the different types of assets on the balance sheet and how do they compare and contrast with projecting liabilities?

How do you project the shareholders' equity account?

What is the importance of financial ratios in building the balance sheet projections?

How do you approach building an integrated cash flow statement?

How do you build each component of the cash flow statement and why is cash the last item to project?

Supporting Schedules

Incorporate calculation and payment of dividends into your integrated financial model

Emulate announced share repurchase program by estimating implied price and shares repurchased

Integration and Balancing of Financial Model

Balance the model using the debt schedule and debt sweep logic – the most important analysis in terms of balancing the model!!

How does the cash actually flow through the model?

Incorporate automatic debt payments and use cash generated to either pay down debt or build cash

How does the revolver facility actually balance the model? Avoid messy nested "if" statements!!

How does the balance sheet and financial statements balance by itself without the use of "plugs"?

How are the financial statements integrated using the Interest schedule?

What are circular references, why should they be avoided and how to get around circular references

Prerequisites:

Accounting & Financial Statements Integration

Company Overview

Basic Financial Modeling

Efficiency in Excel

Video Length / Estimated Total Course Time:
3.5 hours / 5 hours

Individual Course Price:

$350

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Build upon completed core model and layer on valuation analysis. Construct DCF valuation model, detailed revenue segment build-up, project more precise depreciation schedule, calculate credit & leverage statistics and ratios, construct a reference range and football field summary valuation. This Enhancements course will allow you to have a much more detailed stand-alone financial model and valuation model!

Enhancements to Core Integrated Financial Model

Build a stand-alone depreciation schedule to better estimate working capital changes and free cash flow by depreciating existing PPE as well as new capital expenditures

Credit and leverage statistics ratio analysis with automated comparisons vs. S&P rating statistics

Detailed Business Segment Build-Up

Model out historical change in key drivers of growth and project future detailed growth

Analyze and break down growth based on publicly available data and inputs from 10K filing

Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations

Project future detailed growth assumptions that roll up into larger projection model

Valuation Modeling

Construct a discounted cash flow analysis, estimate unlevered free cash flow (free cash flow to firm) and terminal value using multiples approach and perpetuity growth approach

Build reference range and football field to summarize valuation

Prerequisites:

Accounting & Financial Statements Integration

Finance 101 – Introduction to Finance

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Advanced Financial Modeling – Core Model

Extreme efficiency in Excel

Video Length / Estimated Total Course Time:
3 hours / 4 hours

Individual Course Price:

• $250

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Further enhance core integrated financial model by building a detailed tax schedule incorporating NOLs (Net Operating Losses), Section 382 limitations on NOL usage and differences between book and tax depreciation. Dive deep into re-calculating depreciation for tax purposes based on accelerated depreciation – MACRS (Modified Accelerated Cost Recovery System) in the US. Incorporate and flow the accelerated tax depreciation into the larger tax schedule to account for differences in GAAP Pre-Tax Income and Taxable Income. Finish up with a quick Residual Income analysis and EVA (Economic Value Added) analysis, which complements our Enhancements Part I course.

Construct flexible Tax Depreciation Schedule

GAPP depreciation schedule is off simplistic straight-line assumption while tax write-offs allow for accelerated depreciation schedule

Incorporate real-world MACRS schedule (US IRS tax code) to depreciate assets based on various property classes and recovery year

Integrate with new capital expenditures assumptions by asset class

Compare and contrast with GAAP depreciation

Gain better precision into cash flow modeling and working capital line items

Construct and reconcile extremely detailed Book vs. Tax Income Tax Schedule

Combine GAAP and tax depreciation schedule into tax schedule for model's deferred tax liability

Further enhance detailed tax schedule incorporating NOLs (Net Operating Losses)

Incorporate limitations on NOL usage based on change of control provisions

Construct detailed accelerated tax depreciation schedules based on MACRS

Properly build-up detailed deferred tax assets and liabilities Balance Sheet accounts

Perform and analyze Residual Value and EVA analysis

Understand differences among traditional DCF analysis vs Residual Income and EVA analysis

Calculate equity capital charge total capital charge

Use correct discount rate for each analysis

Compare and contrast pros and cons and the purpose of each analysis

Understand differences among traditional DCF analysis vs Residual Income and EVA analysis

Calculate equity capital charge total capital charge

Use correct discount rate for each analysis

Compare and contrast pros and cons and the purpose of each analysis

Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling – Core Model

Enhancements to the Core Model – Part 1

Video Length / Estimated Total Course Time:
3 hours / 4 hours

Individual Course Price:

• $250

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Learn how to build detailed revenue and segment build-ups into your larger financial model. Many financial projection models are based off simple revenue growth rate and expense margin assumptions, resulting in reduced precision in the projection model. This course teaches various approaches to true, bottoms-up, fundamental analysis, from both an "account-by-account" and "business segment" basis (very detailed build-up vs. division by division). The results of build-up analysis roll-up into a consolidating income statement that feeds into the Income Statement revenue items.

Detailed Business Segment Build-Up:

Model out historical change in key drivers of growth and project future detailed growth

Analyze and break down growth based on publicly available data and inputs from 10K filing

Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations

Project future detailed growth assumptions that roll up into larger projection model

Instead of just calculating 10% growth rate in revenue, dig into deeper layers of growth drivers

For instance, for a retailer, calculate Sales / Sq Foot / Type of Store, which captures: (i) number of stores (store count growth); (ii) size of each store (expansion and size creep); (iii) profitability of each sq foot and same store comps sales (YoY sales growth)

Operating & Division Segment Build-Up:

Calculate and analyze different operating segments as reported in public filings to roll-up into IS

Adjust for extraordinary items by segment based on MD&A and disclosed footnotes

Extract, utilize and incorporate volume and pricing increases into operating segment performance

Estimate and project future revenue and segment income and allocate for corporate overhead

Estimate projected COGS and SG&A on the entire base after operating build-up

Detailed New Business Build-Up:

Bridge the gap and quantify future, as-yet-unachieved growth initiatives based on concrete assumptions

Analysis would roll into core "organic growth" model and sensitized

Model out effects of hiring new sales representatives and the associated increased revenue

Triangulate new revenue and tiered commission expenses due to renewal business

Calculate incremental salary and bonus cost of new sales representatives

Calculate additional cost of sales and other expenses related to new business

Detailed Account by Account Build-Up:

Project sources of revenue based on growth in number of accounts and customers

Model out revenue per account and associated commissions and expenses

Incorporate rate increases into model

Further enhance model via sensitivity & scenario modeling and analysis

Detailed build-up consolidates into Consolidating Income Statement which feeds into model

Account for inter-company eliminations in historical pro forma model and projections

Sensitivity Analysis and Multiple Cases:

Layer sensitivity analysis on top of segment build-up to incorporate various assumptions and cases

Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases

Toggle and sensitize profitability and cash flow of model based on various case assumptions

Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling – Core Model

Video Length / Estimated Total Course Time:
4 hours / 5 hours

Individual Course Price:

$350

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Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

Valuation Methodologies

How much is a company worth? Why is the current stock price not an accurate indication of value?

How do you tell if a company is under-valued or over-valued?

Why would one company command a higher or lower premium than its direct competitor?

What is the importance between enterprise value and equity value?

Why do we include minority interest and exclude capital leases?

What is the relevance of capital structure and leverage on a company's value?

Why and how is corporate finance so critical to managing a firm's profitability?

What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples

Why are P/E ratios misunderstood and what other profitability-related ratios are more important?

What is EBITDA and why is it so important?

Utilizing the correct numerator for multiples analysis

Calculating implied value based on multiples analysis

What is a leveraged buyout and what are the main motives for LBOs?

Case Study Discussion

Analysis of "football field" and reference ranges

Detailed discussion of the major valuation methodologies, their nuances and application in the real-world

Analyzing, comparing and contrasting trading comps, deal comps and premiums paid

Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application

Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all

Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)

How do you approach valuing a company with completely disparate businesses?

Prerequisites:

Accounting & Financial Statements Integration

How to Analyze a 10K

Finance 101 – Introduction to Finance

Video Length / Estimated Total Course Time:
2 hours / 2.5 hours

Individual Course Price:

$150

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Build a basic, quick and dirty, back-of-the-envelope trading comps analysis (analysis of selected publicly traded companies). This course will allow you to quickly construct a relative valuation analysis and serves as a critical basis for our Complex Trading Comps Analysis course.

Input historical results and analyst projections for comparable companies (public traded competitors)

Calculate current standalone market valuation multiples

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Video Length / Estimated Total Course Time:
1 hour / 1.5 hours

Individual Course Price:

$100

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Relative Valuation Basics is an extracted section from Advanced Financial & Valuation Modeling - Enhancements course module. In particular, we construct the reference range and football field analysis to complete the valuation picture. We recommend taking the following courses in order to gain the holistic relative valuation view:

Quick & Dirty Trading Comps Analysis

Relative Valuation Basics

Reference Range & Football Field

Build reference range that quantifies fundamental and valuation methodologies

Summarize valuation modeling techniques including: quick & dirty trading comps, reference range analysis

Crystallize and appreciate the capital structure and the relationship between total enterprise value, equity value and price per share

Utilize best practices to reduce average construction time from 2 hours to 30 seconds

Update dynamic football field to graphically summarize valuation metrics

Step-by-step 25 page graphic instruction on how to create football field from scratch

Prerequisites:

Accounting & Financial Statements Integration

Finance 101 - Introduction to Finance

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Quick & Dirty Trading Comps Analysis

Advanced Financial Modeling - Core Model

Extreme efficiency in Excel

Video Length / Estimated Total Course Time:
0.5 hours / 1 hours

Individual Course Price:

$150

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Build a detailed, thorough trading comps analysis (analysis of selected publicly traded companies) and learn how to properly construct a relative valuation analysis the correct way as well as how to normalize financials for extraordinary items, non-recurring and restructuring charges. This course itself isn't terribly complex or difficult, but is very tedious, time consuming and at times frustrating as it requires a great deal of patience, attention to detail and reading comprehension. Hence, the first four letters of the title "analyst" ring true – perfection is required to get the right numbers.

Trading Comps Overview and Instruction

Learn the steps required to construct a trading comps analyses and how to filter straight through to the relevant information

Best practices on inputting and checking data, "Do's and Don'ts" tips, specific Income Statement and Balance Sheet reminders

Calculate LTM (last twelve months) and handling projections for comparability

Weighted average cost of capital analysis

Complex Comps Adjustments
Our comps module covers just about 98% of ALL adjustments one would possibly encounter!! Learn:

When and when not to adjust for asset impairments and write-downs

How to adjust for zero-coupon convertible securities that are simultaneously in-the-money and out-of-the-money

The effects of a LIFO / FIFO change in accounting recognition

How to adjust for changes in accounting principle and discontinued operations

The difference between below-the-line and above-the-line adjustments and evaluate when an item affects both, one or the other or neither

How to properly account for difference fiscal year ends

Proper treatment of capital leases

When to use reported GAAP Income Statement figures and when to use Pro Forma figures

Prerequisites:

Accounting & Financial Statements Integration

Finance 101 – Introduction to Finance

Company Profiles

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Quick & Dirty Trading Comps Analysis

Efficiency in Excel

Video Length / Estimated Total Course Time:
4.5 hours / 6.5 hours

Individual Course Price:

$300

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Build a deal comps analysis (analysis of selected acquisitions), similar to trading comps analysis, but from an acquisition context using historical transaction data instead of current market valuation data. This course will allow you to properly construct a deal comps analysis the correct way, uncovering some of the nuances related to calculating transaction value and purchase price. This course is not a complex course and in fact, is a relative breeze compared with our Complex Trading Comps course, but builds upon the concepts in the latter course.

Deal Comps Instruction

Learn the steps required to construct a deal comps analyses and how to filter straight through to the relevant information

Plow through the myriad of deal information such as 8K filings, 10K filings, press releases and industry databases

Calculate transaction value (purchase price), premiums and multiples in past deals

Uncover subtle nuances of determining correct enterprise value and avoid valuation mistakes

Prerequisites:

Accounting & Financial Statements Integration

Company Profiles

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Quick & Dirty Trading Comps Analysis

Complex Trading Comps Analysis

Efficiency in Excel

Video Length / Estimated Total Course Time:
1.5 hours / 2 hours

Individual Course Price:

$200

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The goals of this course include: (i) understand the major steps and timelines of M&A; (ii) learn how to structure an M&A deal; (iii) explore common deal structures and determine optimal deal structures such as cash vs. stock consideration, stock vs. asset deals; and (iv) accretion / dilution and breakeven analysis. This course provides the fundamental knowledge required to understand, analyze and structure mergers & acquisitions. To hone the concepts learned in this module, be sure to follow-up with our hands-on, Excel-based Merger Modeling Basics course.

Mergers & Acquisitions Overview

Motivations for mergers and acquisitions

M&A sale process and timetable

Review of strategic planning & preparation of required materials

Examination of the types of potential buyers

Description of the due diligence process

Overview of negotiation & closing processes

Overview of representations and warranties

M&A Deal Structuring

Review of various deal considerations and deal structuring options (cash vs. stock)

Common structural issues in a transaction (stock vs. asset, 338(h)(10) elections)

Buyer and seller preferences for various deal structures and rationale

Tax implications of transactions based on deal structure and FASB 142 goodwill amortization

Brief discussion of upfront vs. deferred payments, employee retention and bonus pools

Accretion Dilution Analysis

Merger consequence analysis including accretion / dilution and financial implications of a deal

Discussion of key components with financial impact on transactions

Detailed explanation and analysis of line-by-line construction of accretion / dilution model

Analysis of breakeven PE for both 100% stock and 100% cash considerations

Contribution analysis and its relevant in the analytical process

Prerequisites:

Accounting & Financial Statements Integration

Company Profiles

Corporate Valuation Methodologies

Video Length / Estimated Total Course Time:
2 hours / 2.5 hours

Individual Course Price:

$100

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This merger modeling course builds on top of our M&A Deal Structuring course in which you will build an accretion / dilution merger consequences model. This foundational merger modeling course will allow you to quickly understand the fundamental concepts of analyzing merger implications. To maximize your learning in this module, you need to absolutely understand the concepts in our M&A Deal Structuring course! This course serves as the backdrop to our Basic and Advanced Merger as well as our Super-advanced, Complex merger modeling course.

Accretion Dilution Model

Build dynamic merger consequence analysis (accretion / dilution) incorporating the following:

Synergies switch, cash vs. stock sensitivity

Amortization of goodwill switch (depending on purchase price allocation)

Common structural issues: Stock vs asset deals and 338 (h)(10) elections

Tax implications of transactions based on deal structure and FASB 142 goodwill amortization

Analysis of breakeven PE for both 100% stock and 100% cash considerations

Calculate pre-tax and after-tax synergies / cushion required to breakeven

Video Length / Estimated Total Course Time:
0.6 hours / 0.75 hours

Individual Course Price:

$150

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This merger modeling course builds on top of our M&A Deal Structuring course in which you will build an accretion / dilution analysis, a generic "ability to pay" analysis, and a simple merger model slapping together two income statements, selected balance sheet items and cash flow sweep for debt payment. This course will allow you to quickly understand basics of merger modeling. To maximize your learning in this module, you need to absolutely understand the concepts in our M&A Deal Structuring course! This course serves as the backdrop to our super-advanced, complex merger modeling course.

Accretion Dilution Model

Build dynamic merger consequence analysis (accretion / dilution) incorporating the following:

Synergies switch, cash vs. stock sensitivity

Amortization of goodwill switch (depending on purchase price allocation)

Common structural issues: Stock vs asset deals and 338 (h)(10) elections

Tax implications of transactions based on deal structure and FASB 142 goodwill amortization

Analysis of breakeven PE for both 100% stock and 100% cash considerations

Calculate pre-tax and after-tax synergies / cushion required to breakeven

Ability to Pay Analysis

Construct an "Ability to Pay" Analysis, a reverse Accretion / Dilution analysis

Calculate maximum equity value and enterprise value based on cost of debt

Sensitize analysis based on interest rates and pre-tax synergy assumptions

Simple Merger Model

Construct a merger model, simple combination of Income Statement for target and acquiror

Project simple stand-alone Income Statement for both target and acquiror

Analyze selected balance sheet figures and ratios and multiples

Estimate target valuation and deal structure

Calculate selected Pro Forma balance sheet items

Combine target and acquiror's Income Statement and estimated synergies

Calculate cash flow for debt repayments to estimate debt repayments and cash balances

Compute interest expense and interest income based on paydowns

Calculate accretion / dilution and credit ratios

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Advanced Financial Modeling – Core Model

M&A Deal Structuring

Efficiency in Excel

Video Length / Estimated Total Course Time:
1.5 hours / 2.5 hours

Individual Course Price:

$200

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Our Intermediate/Advanced Merger Modeling course significantly builds upon our Merger Modeling Basics course. We go beyond the simple concepts of accretion /dilution and build additional precision into estimating the correct, pro forma combined earnings. First, enhance the Sources & Uses of Funds to allow for additional clarity in deal structure. Then, dive right into the fine details of the complex FASB 141/142 and IFRS 3 purchase price allocation rules and fair market value tangible assets step-up intertwined with intangibles asset allocation. We tackle and quantify the resulting nuances in deferred tax liabilities and better quantify our synergies estimates. Participants should have mastered the merger concepts and financial modeling techniques covered in our M&A Deal Structuring and Merger Modeling Basics course.

Construct a merger model, simple combination of Income Statement for target and acquiror

Project simple stand-alone Income Statement for both target and acquiror

Analyze selected balance sheet figures and ratios and multiples

Estimate target valuation and deal structure

Build an expanded Sources and Uses of Funds analysis that controls the merger model

Utilize cash from the acquiror to fund the merger, balanced with minimum cash balances

Dynamically handle different percent cash and stock deal structures

Incorporate target net debt refinanced / assumed

Calculate and incorporate proper treatment of debt financing fees and transaction costs

Merge target and acquiror income statements and calculate starting balance sheet items

Calculate selected Pro Forma balance sheet items (full B.S. not projected)

Combine target and acquiror's Income Statement

Estimate various types of synergies – revenue, COGS and SG&A synergies

Estimate condensed Cash Flow Statement and simplified Debt Sweep

Calculate cash flow for debt repayments to estimate debt repayments and cash balances

Compute interest expense and interest income based on paydowns

Calculate accretion / dilution and credit ratios

Calculation of Purchase Price Allocation (FASB 141/142 and IFRS 3)

Allocate purchase price among tangible book value (existing assets at cost), step-up in basis to FMV, tax deductible and non-tax deductible identifiable intangibles and goodwill

Proper accounting treatment of transaction costs, tender costs and accrued interest of any refinanced debt and debt transaction financing fees

Account for differences in GAAP book deductibility and tax deductibility of intangible assets

Build in the ability to treat acquisitions as an asset sale for tax treatment

Prerequisites:

Basic Financial Modeling

M&A Deal Structuring

Merger Modeling Basics

Efficiency in Excel

Video Length / Estimated Total Course Time:
2.5 hours / 4 hours

Individual Course Price:

$200

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This course provides a basic overview and introduction to leveraged buyouts, including discussion of rationale for 'going private', ideal LBO candidate, drivers of value. The following items are discussed, including description, importance, implications and general thoughts on: valuation, debt capacity, scenario analysis, sources & uses of funds, rollover equity, pro forma capital structure, purchase vs. recap accounting, goodwill treatment and other issues. You will gain some basic & fundamental knowledge required to understand LBO transactions. The purpose of this course is to introduce some of the terminology and concepts required for our Quick & Dirty LBO Modeling and Complex LBO Modeling courses.

Valuation Summary

Maximum Debt Capacity

Refinancing Scenarios

Expenses – Definitions and Accounting Treatment

Sources and Uses of Funds

Equity Sources and Rollover Equity

Interest Rate Scenarios

Pro Forma Capital Structure

Purchase Accounting vs. Recapitalization Accounting

Goodwill Calculation / Treatment and Amortization (FASB 141/142)

Pro Forma Opening Balance Sheet & Adjustments

Pro Forma Shareholder's Equity Treatment

Cash Flow Statement and Debt Sweep Adjustments and Expansion

Prerequisites:

Accounting & Financial Statements Integration

Finance 101 – Introduction to Finance

Corporate Valuation Methodologies

Video Length / Estimated Total Course Time:
1 hour / 1 hour

Individual Course Price:

$75

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In the normal course of running a company, the CFO must balance capital requirements with capital sources of funds. Changes to the capital structure are not insignificant as each component of capital has an opportunity cost. In this course, we introduce the impact of changes in capital structure and the resulting impact on a company's decision to borrow vs. raise equity. We quantify the thought process and the logic that dictates one or the other by examining both extremes of capital structure changes: from a simple small share repurchase to the opposite spectrum, the leveraged buyout. This class examines and incorporates all the major inputs and value drivers of capital structure changes by building a short, quick and dirty LBO analysis, providing an excellent condensed overview and introduction to LBO modeling. As LBOs are risky and complex financial transactions, sometimes, building a full-out, complex LBO model is not necessary or required if one just wants to quickly gauge the feasibility of an LBO.

Learning Objectives

Discussion on leveraged buyouts, including overview, rationale, ideal candidate and drivers of value

Construct and sensitize a basic, quick and dirty, leveraged buyout model

Incorporate fundamental drivers including Sources & Uses, Pro Forma, post-LBO projections, available cash flow, debt sweep, credit ratios and IRR

Learning Goals

• Drivers of value from a financial point of view and changes in capital structure
  • Comparison to share repurchases and the lack of value creation
  • Counter argument of cost of capital, funding costs and opportunity costs arbitrage
  • Counter-counter argument of weighted average cost of capital changes
  • Final assessment of source of returns of LBOs
  • We first introduce the obvious rationales, then prove why that is wrong, then disproof the proof and disprove that and disprove that and finally agree on how corporate finance and the capital markets extract value from capital structure arbitrage
  • In short, participants might be thoroughly confused at first, but will finally understand every aspect of the value proposition by the time we are done!
• Discussion on LBOs, including: overview of LBO's, rationale for going private, ideal LBO candidate
• Create a quick and dirty, condensed LBO model from scratch
• Build a summary Sources and Uses of Funds analysis that dictates LBO value
• Construct a Pro Forma, post-LBO Income Statement projection model incorporating LBO changes
• Calculate cash flow available to firm through simplified debt sweep pay off high debt volumes
• Create condensed IRR (internal rate of return) analysis to evaluate financial sponsor returns
  • Comparison of IRR to multiple of capital as a return metric and benchmark
  • Identify true source of returns, from building of equity to time value of money
  • Compare and contrast returns trends based on exit multiple contraction or expansion
  • Discussion on why highly levered transactions must exit within 3 to 5 years
  • Analyze and partially quantify the trend towards dividends to financial sponsor as opposed to debt paydown
• Analyze basic credit and leverage statistics and equity sources that drive the LBO model

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Company Overview

Basic Financial Modeling

Advanced Financial Modeling – Core Model

M&A Deal Structuring

Merger Modeling Basics

LBO Overview

Efficiency in Excel

Video Length / Estimated Total Course Time:
1 hour / 1.5 hours

Individual Course Price:

$150

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This course builds upon our Share Repurchase and Quick & Dirty LBO modeling courses which quantifies changes to capital structure and opportunity cost and our Basic, Quick & Dirty LBO modeling course. We start off by diving deeper into the typical LBO deal structure and then expand upon the different components of the Sources & Uses analysis; projecting selected critical Balance Sheet items; constructing more detailed Cash Flow Statement estimates and robust Debt Sweep, as well as triangulating IRRs for dividends to equity sponsor. Learning objectives include: construct and sensitize an advanced leveraged buyout model with many nuances and complications of our full-blown complex LBO model; incorporate fundamental drivers including Sources & Uses, Pro Forma, post-LBO projections, available cash flow, debt sweep, credit ratios and IRR; selected Pro Forma Balance Sheet items, Debt and Shareholder Equity accounts; Debt Sweep: incorporate Term Loan mandatory amortization and integrating and sweeping additional new and existing debt tranches; sensitize core IRR to equity sponsor as well as triangulate IRR.

Build an expanded Sources and Uses of Funds analysis that dictates LBO value

Sources of Funds: inclusion of rollover equity, detailed debt structure & maximizing debt capacity

Uses of Funds: ability to toggle refinancing of existing debt, excess cash usage, proper treatment of debt financing fees, tender costs and transaction costs

Construct a Pro Forma, post-LBO Income Statement projection model incorporating LBO changes

Calculate new, Pro Forma interest expense and amortization of debt financing fees

Calculate cash flow available to firm through expanded debt sweep pay off high debt volumes

Constructed simulated Cash Flow Statement, including CFO, CFI and CFF

Expanded Debt Sweep schedule to flow through various debt items

Incorporate Term Loan mandatory amortization and dynamic pre-payment

Integrate and sweep through additional new and existing debt tranches

Create condensed IRR (internal rate of return) analysis to evaluate financial sponsor returns

Comparison of IRR to multiple of capital as a return metric and benchmark

Identify true source of returns, from building of equity to time value of money

Compare and contrast returns trends based on exit multiple contraction or expansion

Discussion on why highly levered transactions must exit within 3 to 5 years

Analyze and partially quantify the trend towards dividends to financial sponsor as opposed to debt paydown

Triangulate IRR when there are unequal cash flow returns to equity sponsor primarily through dividends

Analyze basic credit and leverage statistics and equity sources that drive the LBO model

Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling – Core Model

M&A Deal Structuring

Merger Modeling Basics

LBO Overview

Quick & Dirty LBO Modeling

Efficiency in Excel

Video Length / Estimated Total Course Time:
2.5 hour / 4 hours

Individual Course Price:

$300

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When Excel and Office 2007 first debuted, Excel power-users around the world collectively groaned with a massive headache. While there are certainly key enhancements to Excel 2007 that we like, navigating the new "ribbon" caused some grief as users were forced to re-learn how to use Excel. Thankfully, most of the shortcut accelerator keys are still in place. But change is never easy, so we created this short tutorial on getting you up to speed real quick - the one stop source on mastering Excel 2007. Embrace it, Excel 2007 is here to stay.

Goal: communicate the key differences in Excel 2007 vs. Excel 2003 pertaining to financial professionals

If you don't want to spend hours figuring out how to navigate the new interface, then you're at the right place

No need to spend hundreds of dollars on a book that you won't read

We'll teach you the key things in a fraction of the time

Prerequisites:

Excel Fundamentals for the Finance Professional

Video Length / Estimated Total Course Time:
0.5 hours / 1 hours

Individual Course Price:

$25

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This course focuses on how learning the fundamental building blocks of Excel so you can begin to take advantage and leverage all of Excel's true capabilities. In order to efficiently build models and crunch large data dumps in Excel, one must master the basics before the advanced content. Learn relevant financial formulas, proper navigation, formatting of files and worksheets, creating calculations in cells, and linking between worksheets/tabs. Functions and tools covered in this course include: mathematical, financial, logic, date/time formulas; data manipulation; anchoring; data tables; and building a capstone model. Emphasis will be on using shortcut keys, simplifying steps, and manipulating data. You will leave with techniques you can use immediately, allowing you to work faster and with less effort.

Mathematical functions: SUM, MAX, AVERAGE, MEDIAN, MIN

Financial functions: PV, FV, RATE, NPV, IRR

Logic Functions: IF, nested IF, CHOOSE, AND, OR

Date Functions: MONTH, DAY, YEAR, WEEKDAY, EO MONTH

Time Functions: HOUR ,MINUTE, SECOND, TODAY, NOW

Formatting: fills, copy formulas, paste special

Prerequisites:

Data Manipulation: TEXT, CONCATENATE, ROUND

Anchoring and locking cell references

Build simple capstone financial model that encompasses efficiencies, shortcuts and sensitivity analysis

Shortcuts and working with Add-ins

Video Length / Estimated Total Course Time:
3 hour / 5 hours

Individual Course Price:

$300

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This course focuses on how to effectively and efficiently utilize Microsoft Excel for data analysis. A financial analyst will not only use Excel to build financial models, but also to crunch a large data dump. Learn how to minimize as much manual labor as possible, thereby saving time and performing more detailed analysis quickly. Apply commonly-used formulas in new and different ways; uncover often over-looked Excel formulas; streamline number crunching and analysis via functions and tools including pivot tables, sumif, sum+if, transpose, working with arrays, vlook-up, subtotals, and regression analysis; enhance your spreadsheets with drop-down boxes, data validation techniques, automation of alternate row shading; take Excel to the next level with an introduction to building and automating simple macros and more!

Learn the most useful and overlooked Excel shortcuts to make life easier!

What are the different ways to make your Excel worksheet into a model instead of just a flat analysis? Learn different "switches alternatives" (if, choose, offset)

Learn data validation techniques to dummy proof your model!

Perform basic regression analysis using least squares approach

How do you perform one-dimension and two-dimensional sensitivity analyses using data tables?

Utilize the vlookup function to its fullest to streamline tedious lookup jobs

Pivot Tables: Everybody's heard of it but who knows how to use it! Learn how to summarize and dissect large amounts of data for analysis!

Pivot Tables: Even better - add built-in and custom calculated fields to really use pivot tables to the max!

Utilize the sumif formula and sum+if array functions to simplify complex conditional calculations

Learn how to use the subtotal formula and function to minimize errors

Combine subtotal with AutoFilter options to easily crunch all sorts of data!

Automate alternate row shading in a table of data using complex conditional formatting

Learn how to use the transpose array function

Add some spice to your Excel analysis and models using drop-boxes

Introduction to recording macros, modifying and coding macros and creating macro icons

Prerequisites:

Knowledge of Excel and fundamental concepts in finance and valuation (since data is finance oriented)

Company Overview and Basic Financial Modeling

Video Length / Estimated Total Course Time:
3.5 hour / 5 hours

Individual Course Price:

$300

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"A Picture is Worth a Thousand Words" - but what happens when you have the perfect image in your head but you can't get Excel to graph it the way you want? Ever get annoyed at constantly having to go back into "Source Data" whenever you add an item to your data series? Or how about getting the perfect sized bar or line without resorting to using a ruler to literally draw it on! This course builds upon our Advanced Excel for Data Analysis course and focuses advanced charting & graphing techniques and how to properly integrate with PowerPoint. A critical, must-take course especially for professionals that have to create graphs in their presentations, reports and slides. As usual, we emphasize and teach all the best practices and focuses on our core Excel learning goal: automation, automation, automation! Leave nothing to chance, there is always a way to simplify and automate your charting & graphing approach. This jam-packed session includes: waterfall charts, football fields, dymamic ranges, and much much more! Learn the best practices of integrating into PowerPoint, when to embed, link (never) and copy as picture, as well as add to our Excel macros with a couple handy PowerPoint macros.

Creating Price Volume chart with call-out box annotations with perfect alignment

Calculate and create dynamic moving average charts

Construct Indexed Stock Price History graph with automated information box

Build historical industry graph summarizing average, high low bars detailing valuation spreads

Construct combination charts and graphs including precise annotations and secondary axis formatting

Properly structure beta and volatility analysis and regression on multiple axis

Construct historical and projected linear regression graph with automated best fit lines

Assemble and understand logic behind "step charts" with X and Y Error bars to connect the dots

Create dynamic charts and graphics that automatically update as additional source data is added

Build Shares Traded at Various Prices graph with absolute perfectly sized and aligned graphs

Create simple column and cumulative column (or bar) chart (multiple stacked chart)

Learn how to create complex, combination charts such as double stacked charts

Go all out by building a "football field" valuation range chart that combines triple stacked charts with XY scatter plot to automate current stock price line

Construct waterfall chart that graphically summarizes sum-of-parts valuation

Learn best practices of bringing Excel charts and exhibits into PowerPoint

Avoid the forbidden linking between files and learn when to embed vs copy/paste as picture

Learn the fastest and best ways to work in PowerPoint without the mouse

Facilitate chart and graph placement in PowerPoint with our custom PPT macros

Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling - Core Model

M&A Deal Structuring

Merger Modeling Basics

LBO Overview

Quick & Dirty LBO Modeling

Efficiency in Excel

Video Length / Estimated Total Course Time:
3.5 hour / 5 hours

Individual Course Price:

$300

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Introduction to the major jargon and finance terminology in finance. What exactly is the sell-side and the buy-side and do they affect the capital markets and why do they have a symbiotic relationship? What exactly is investment banking, sales & trading and research? How is it that asset management is the flip opposite and yet very similar at the same time? Put those questions to rest with this Overview of Financial Markets overview.

Overview of the Sell-Side Process: Investment banking (products / services, deal process, role of professional, industry trends, buzzwords, bulge bracket vs. boutique middle market), equity research, commercial banking, sales & trading (prime brokerage, proprietary trading)

Overview of the Buy-Side Process: Asset management (products / services, role of professional, industry trends, buzzwords, private client services, private wealth management, portfolio management ), alternatives (hedge funds, private equity, fund of funds)

Prerequisites:

Desire to learn finance terminology, general business smarts and common sense

Video Length / Estimated Total Course Time:
1 hour / 1 hour

Individual Course Price:

FREE

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Treasury Options:

Explanation of how to account for diluted shares outstanding using the treasury method of adjustment

D&A and Working Capital:

Full tutorial on the concepts of depreciation vs. capital expenditures in the long run

Full explanation on the concepts working capital and importance of

Share Repurchase:

Step-by-step walk-through of whether or not share repurchases add value

Circular Reference:

Explanation of how and why circular references are created in a financial model

Our various financial modeling courses explain how to avoid circular references

Excel Iterations:

Detailed explanation of how Excel's iterations function works when you cannot avoid circular reference

Gray Background:

Tutorial of how to change your background to gray when using white cells and white shading

WST Excel Add-in Instructions:

How to properly install Wall St. Training's Excel add-in macros & toolbars

Increase / Decrease Decimal Instructions

How to automate increase and decrease decimals without the mouse and really customize Excel to the next level

Video Length / Estimated Total Course Time:
1 hour / 1.5 hours

Individual Course Price:

FREE

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A sampling of selected extracts – self-contained video clips - from our courses and packages. For full access to our courses, login and click on Order More Courses. Enjoy!

WST: 1.1 Accounting - Financial Statements Overview

WST: 1.2 Accounting - Accrual Concept & Matching Principle

WST: 1.3 Accounting - EBIT & EBITDA Explanation

WST: 1.4 Accounting - Financial Statements Integration

WST: 1.5 Accounting - Non-Recurring Items

WST: 1.6 Accounting - Ratios - ROE

WST: 1.7 Accounting - Ratios - Days Outstanding

WST: 2.1 10K Footnotes - Enron Aftermath VIE FIN 46

WST: 2.2 10K Footnotes - FX Impact on Revenue

WST: 3.1 Finance 101 - CAGR Explained and Applied

WST: 3.2 Finance 101 - CAPM Simplified

WST: 3.3 Finance 101 - SML and Identifying Excess Returns

WST: 3.4 Finance 101 - WACC Defined and Calculated

WST: 3.5 Finance 101 - Cost of Debt Analyzed

WST: 3.6 Finance 101 - WACC Applied

WST: 4.1 Corporate Valuation - Basic Valuation Methodologies

WST: 4.2 Corporate Valuation - TEV & Exclusion of Leases

WST: 4.3 Corporate Valuation - Valuation Multiples

WST: 4.4 Corporate Valuation - Up and Down Capital Structure

WST: 4.5 Corporate Valuation - Proxy for PE Ratios

WST: 4.6 Corporate Valuation - Football Field

WST: 4.7 Corporate Valuation - Control Premiums Paid

WST: 6.1 Company Overview - Capital Structure Inputs

WST: 7.1 Basic Financial Modeling - EPS Shares Outstanding

WST: 7.2 Basic Financial Modeling - Valuation Model & DCF

WST: 7.3 Basic Financial Modeling - DCF Perpetuity Growth

WST: 7.4 Basic Financial Modeling - Implied Perpetual Growth

WST: 8.1 Trading Comps - LTM Different Fiscal Year End Part1

WST: 8.2 Trading Comps - LTM Different Fiscal Year End Part2

WST: 9.1 Adv FM Core Model - Income Statement Projection

WST: 9.2 Adv FM Core Model - Balance Sheet Logic & Drivers

WST: 9.3 Adv FM Core Model - Balance Sheet Projection

WST: 9.4 Adv FM Core Model - Cash Flow Dividends Projection

WST: 9.5 Adv FM Core Model - Cash Flow Share Repurchase

WST: 9.6 Adv FM Core Model - Debt Sweep Starting Point

WST: 9.7 Adv FM Core Model - Integrating & Balancing Model

WST: 10.1 Adv FM Enhancements - Segment Buildup Explanation

WST: 10.2 Adv FM Enhancements - Project Depreciation Expense

WST: 10.3 Adv FM Enhancements - Credit Ratio Automation

WST: 11.1 Complex Trading Comps - LIFO FIFO Adjustment

WST: 13.1 M&A Deal Structuring - M&A Process & Timetable

WST: 13.2 M&A Deal Structuring - Stock vs Asset Merger Model

WST: 13.3 M&A Deal Structuring - 338(h)(10) Elections

WST: 13.4 M&A Deal Structuring - Stock vs Cash Breakeven

WST: 14.1 Merger Modeling Basics - Accretion Dilution

WST: 14.2 Merger Modeling Basics - Ability to Pay Merger

WST: 14.3 Merger Modeling Basics - Simple Merger Model

WST: 14.4 Merger Modeling Basics - Merger Deal Structure

WST: 15.1 LBO Modeling - Leveraged Buyout Overview

WST: 15.2 LBO Modeling - Ideal LBO Candidate

WST: 15.3 LBO Modeling - Deal Expenses Accounting Treatment

WST: 15.4 LBO Modeling - Sources & Uses and Rollver Equity

WST: 15.5 LBO Modeling - Recap vs Purchase Accounting

WST: 15.6 LBO Modeling - Recap vs Purchase Accting Applied

WST: 16.1 LBO Modeling - IRR Calculation & Analysis

WST: 17.1 Complex LBO Modeling - Refinancing Scenarios Part1

WST: 17.2 Complex LBO Modeling - Refinancing Scenarios Part2

WST: 17.3 Complex LBO Modeling - Sources & Uses Balancer

WST: 17.4 Complex LBO Modeling - BS Pro Forma Debt Adj

WST: 17.5 Complex LBO Modeling - Cash Flow Adjustments

WST: 17.6 Complex LBO Modeling - New Term Loan Construction

WST: 17.7 Complex LBO Modeling - Sensitivity Still Balances

WST: 17.8 Complex LBO Modeling - Credit Ratio Sensitivity

WST: 18.1 Super Advanced M&A - Merger Modeling Overview Pt1

WST: 18.2 Super Advanced M&A - Merger Modeling Overview Pt2

WST: 18.3 Super Advanced M&A - Merger Modeling Overview Pt3

WST: 18.4 Super Advanced M&A - Sources & Uses Logic

WST: 18.5 Super Advanced M&A - Building Debt Sweep

WST: 18.6 Super Advanced M&A - Enhancing the Debt Sweep

WST: 19.1 Advanced Excel - Switches Alternatives

WST: 19.2 Advanced Excel - Basic Regression

WST: 19.3 Advanced Excel - Data Tables Sensitivity Tables

WST: 19.4 Advanced Excel - Vlookup Logic

WST: 19.5 Advanced Excel - Pivot Table Logic

WST: 19.6 Advanced Excel - Power of Arrays

WST: 19.7 Advanced Excel - Row Shading Conditional Format

WST: 19.8 Advanced Excel - Tranpose

WST: 19.9 Advanced Excel - Separate Names Combine Functions

WST: 19.10 Advanced Excel - Drop Box Alternatives Logic

WST: 19.11 Advanced Excel - Excel 2003 Create Macro Part 1

WST: 19.12 Advanced Excel - Excel 2003 Create Macro Part 2

WST: 20.1 Overview of Financial Mkts - Buy-Side vs Sell-Side

WST: 20.2 Overview of Financial Markets - Investment Banking Explained

WST: 20.3 Overview of Financial Mkts - Investment Bank Hierarchy

WST: 20.4 Overview of Financial Mkts - Sales & Trading Explained

WST: 20.5 Overview of Financial Mkts - Equity Research

WST: 20.6 Overview of Financial Mkts - Asset Management Explained

WST: 20.7 Overview of Financial Mkts -Alternatives Private Equity

WST: 20.8 Overview of Financial Mkts - Alternatives & Hedge Funds

WST: 20.9 Overview of Financial Mkts - Structured Products & ABS

WST: 20.11 Share Repurchase Part 1

WST: 20.12 Share Repurchase Part 2

WST: 20.15 Circular Reference Part 1

WST: 20.16 Circular Reference Part 2

Individual Course Price:

FREE

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This course builds upon our basic Corporate Valuation course and introduces the complex nuances associated with analyzing and valuing private companies. We dive deep into the details and concepts deeply imbedded with valuation of large publicly traded and listed companies and take it to next level by applying it to companies and regions with very sparse publicly available data. Learn nuances of adjusting for DCF valuation, WACC analysis when no data exists, how to select and adjust peer comparables when no "good comp" exists. While there is certainly no magic bullet to the tough questions and lack of information, there are techniques and best practices to get us as close as possible.

Fundamental & DCF Valuation Nuances:

Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application

Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all

Analysis of EBITDA and growth approaches to Terminal Value estimation and pros and cons of each

Discussion on the correct Cash Flow starting point for Gordon Growth Rate: long-term relationship between CapEx and depreciation and the theoretical implications on DCF

Computing reasonable perpetual growth rate and the nuances associated

Perpetual growth rate method and applications: how to value high growth companies in which the terminal year growth has not yet reached steady state growth for perpetuity

WACC and Cost of Component Capital Nuances:

Application of WACC and matching of cash flows with the riskiness of the cash flows

Correct Cost of Debt to use: coupon rate, current YTM if available vs. investment banker rate

Estimating Cost of Debt when there is no outstanding debt or interest rates unavailable

Cost of Equity and CAPM (Capital Asset Pricing Model): theory, implications and application

Concept of diversification and risk/reward model and practical approach as discount factor

Correct risk free rate and market risk premium and the various premiums and adjustments made to MRP

Concept of beta and sensitivity to the market and adjusting for capital structure differences

Estimating beta with none present, and un-levering and re-levering betas to adjust for earnings volatility

Use of beta to manipulate and influence discount rate to affect overall DCF valuation

Thinking through the logic of a company with a ton of cash on the books and adjustments (if any) to beta

Determining the correct capital structure (Debt & Equity / Capitalization) – your own or industry ideal?

Adjusting WACC and DCF for private companies, liquidity, size and country-specific adjustments

DCF Revisited:

Importance of DCF, NPV & IRR analysis for start-ups, growth capital and project finance

Private company PE ratios and nuances associated with Equity Value / Net Income as a proxy

Short, brief discussion on industry specific valuation and introduction to basic nuances and differences

Brief honorable mention of alternative valuation methodologies

Enterprise Value Nuances:

TEV: what is the correct treatment of minority interest and capital leases from a standalone valuation aspect vs. credit perspective vs change of control

What is the relevance of capital structure and leverage on a company's value?

Crystallizing Enterprise Value: Proper Allocation of TEV in HoldCo context

Case study analyzing proper allocation of value of public traded parent and subsidiaries

Analysis of market valuation attribution to standalone parent and majority owned subsidiary

Difference in treatment of TEV based on if subsidiary's debt is owed to third party or to parent

Reconciliation of book value treatment of Minority Interest vs. minority owned percentage of sub

Prerequisites:

Accounting & Financial Statements Integration

Finance 101

Corporate Valuation Methodologies & Corporate Finance

Basic Valuation Techniques

Video Length / Estimated Total Course Time:
3 hours / 4 hours

Individual Course Price:

$250

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Learn how to build detailed revenue and segment build-ups into your larger financial model. Many financial projection models are based off simple revenue growth rate and expense margin assumptions, resulting in reduced precision in the projection model. This course teaches various approaches to true, bottoms-up, fundamental analysis, from both an "account-by-account" and "business segment" basis (very detailed build-up vs. division by division). The results of build-up analysis roll-up into a consolidating income statement that feeds into the Income Statement revenue items.

Detailed Business Segment Build-Up:

Model out historical change in key drivers of growth and project future detailed growth

Analyze and break down growth based on publicly available data and inputs from 10K filing

Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations

Project future detailed growth assumptions that roll up into larger projection model

Instead of just calculating 10% growth rate in revenue, dig into deeper layers of growth drivers

For instance, for a retailer, calculate Sales / Sq Foot / Type of Store, which captures: (i) number of stores (store count growth); (ii) size of each store (expansion and size creep); (iii) profitability of each sq foot and same store comps sales (YoY sales growth)

Operating & Division Segment Build-Up:

Calculate and analyze different operating segments as reported in public filings to roll-up into IS

Adjust for extraordinary items by segment based on MD&A and disclosed footnotes

Extract, utilize and incorporate volume and pricing increases into operating segment performance

Estimate and project future revenue and segment income and allocate for corporate overhead

Estimate projected COGS and SG&A on the entire base after operating build-up

Detailed New Business Build-Up:

Bridge the gap and quantify future, as-yet-unachieved growth initiatives based on concrete assumptions

Analysis would roll into core "organic growth" model and sensitized

Model out effects of hiring new sales representatives and the associated increased revenue

Triangulate new revenue and tiered commission expenses due to renewal business

Calculate incremental salary and bonus cost of new sales representatives

Calculate additional cost of sales and other expenses related to new business

Detailed Account by Account Build-Up:

Project sources of revenue based on growth in number of accounts and customers

Model out revenue per account and associated commissions and expenses

Incorporate rate increases into model

Further enhance model via sensitivity & scenario modeling and analysis

Detailed build-up consolidates into Consolidating Income Statement which feeds into model

Account for inter-company eliminations in historical pro forma model and projections

Sensitivity Analysis and Multiple Cases:

Layer sensitivity analysis on top of segment build-up to incorporate various assumptions and cases

Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases

Toggle and sensitize profitability and cash flow of model based on various case assumptions Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling – Core Model

Video Length / Estimated Total Course Time:
4 hour / 5 hours

Individual Course Price:

$350

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Pro Forma financial statements are a tool to recast financial results in a manner that is more representative of future performance and to remove the effects of private ownership. Pro Forma financial statements have one or more assumptions or hypothetical conditions built into the data and are often used to develop core earnings capacity (quality of earnings) when the objective is to value a company for sale to a third party or for internal perpetuation. The goal is to examine a sampling of the most common types of Pro Forma adjustments most often seen when valuing closely-held entities. Similar to analyzing one-time adjustments for public companies, the adjustments can affect both revenues and expenses, increasing or decreasing either one. However, private company pro form adjustments require a much more detailed analysis of each expense line to adjust for the effects of private ownership.

How to recast financial results to be more representative of future performance and adjust for the effects of private ownership

Understand the different types of adjustments required, ranging from discretionary to non-recurring to standalone corporate entity

Comprehend the major types of revenue adjustments to isolate true, organic revenue base

Learn the right questions to ask regarding new clients, lost clients, profit sharing agreements and more

Plow through all the expense line items, focusing on SG&A expenses

Apply industry-wide rules of thumbs on compensation and benefits

Adjust for the impact of key officers and management's run-rate compensation level

Dive in deep on operating expenses, from auto expenses/allowances to advertising/marketing, etc

Adjust for taxes from a private, pass-thru entity to a standalone corporation

Analyze key Balance Sheet adjustments such as midnight shareholder dividends and officer loans

Prerequisites:

Accounting & Financial Statements Integration

Company Overview

Basic Financial Modeling

Video Length / Estimated Total Course Time:
1.5 hour / 2.5 hours

Individual Course Price:

$200

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This Merger Modeling – Earnout Discussion module builds upon our M&A Deal Structuring and Merger Modeling Basics course by reconciling differences that arise in private middle-market transactions in which a buyer wants to be rewarded for future growth and a seller is only willing to pay for growth that has been achieved. But, the seller reckons - "why should I sell when I believe I can achieve greater growth and then sell for an even larger valuation at that future point". The main tool to bridge this gap is for the seller to put his money where his mouth is - if you say you can achieve $1 billion of revenue, then prove it - one should be willing to accept deferred, contingent payments for such future growth that has yet to be realized. In this add-on module, we explore different ways to analyze and structure earnouts.

Construct a sample earnout model based on a base earnout and a "super-earnout":

Create a two-tiered earnout structure that is dependent on achieving management projections

Structure earnout based on both Revenue and EBITDA targets

Evaluate the "base" target financial goals and calculate corridor earned

Review best practices in calculating the actual earnout earned

Repeat analysis for second earnout tier, the "super-earnout", a much more difficult to achieve set of financial projections

Evaluate pros and cons of being too optimistic in management projections vs. being too pessimistic

Prerequisites:

Accounting & Financial Statements Integration

Basic Financial Modeling

M&A Deal Structuring

Merger Modeling Basics

Segment Build-up & Sensitivity Modeling

Private Company Pro Forma Modeling

Video Length / Estimated Total Course Time:
1 hour / 1.5 hours

Individual Course Price:

$200

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The goal of this course is quite simple and yet extremely complex in implementation: build an all-out, full combination and merger analysis of target and acquirer company, integrating full projection model for both. This course will allow you to build one of the most dynamic, sophisticated and complex merger models out there, slapping together complete Income Statement, Balance Sheet, Cash Flow Statement, brand new, highly complex Debt Sweep and Interest schedule for the two companies and combined merged entity. Determine deal structure, purchase price allocation and tax deductibility, accretion / dilution and a whole host of issues.

Learning objectives include: (i) calculate Sources & Uses of Funds, post-transaction ownership, accretion / dilution; (ii) combine Target and Acquiror Income Statements and incorporate synergies into pro forma merger model; (iii) calculate pro forma, post-transaction opening Balance Sheet and project future combined Balance Sheet; (iv) derive combined Cash Flow Statement, dept sweep & interest schedule to balance and integrate model.

The core LBO model serves as the beginning model for the target company in this Complex, Super-Advanced Merger Modeling course and as such, you must have completed the Complex LBO Modeling course first to have the model!

Merger Summary & Sensitivity Options

Sensitize deal structure options, including stock & cash consideration

Construct Sources & Uses of Funds including various financing scenarios and ability to refinance any existing debt and utilize existing excess cash to fund acquisition

Calculate correct transaction value incorporating economic effect of management options

Calculate post-transaction ownership summary

Allocate purchase price among tangible book value (existing assets at cost), step-up in basis to FMV, tax deductible identifiable intangibles, non-tax deductible identifiable intangibles and goodwill

Proper accounting treatment of transaction costs, tender costs and accrued interest of any refinanced debt and debt transaction financing fees

Account for differences in GAAP book deductibility and tax deductibility of intangible assets

Build ability to treat acquisitions as an asset sale for tax treatment Line-by-line combination of Target & Acquiror Income Statements including revenue and expense synergies and correctly depreciation and amortization of assets from purchase price allocation analysis

Calculate pro forma, post-transaction EPS, accretion / dilution analyst and pre-tax synergies / cushion required to breakeven

Project tax levels, incorporating permanent differences in book vs. tax deductibility of intangible assets

Combine Target & Acquiror Balance Sheets and perform transaction adjustment entries to calculate pro forma opening Balance Sheet

Calculate projected Balance Sheet and Cash Flow Statement of combined merged company

Analyze & construct complex debt schedule to sweep through mandatory & discretionary debt payments

Ability to dynamically pay down tranches of Target & Acquiror's debt and new debt raised

Calculate pro forma and projected credit & leverage statistics and automatically evaluate debt ratings of merged company

Prerequisites:

Accounting & Financial Statements Integration

Company Profiles and Corporate Valuation Methodologies

Company Overview and Basic Financial Modeling

Advanced Financial Modeling – Core Model & Enhancements

M&A Deal Structuring and Merger Modeling Basics

LBO Overview and Quick & Dirty LBO Model

Complex LBO Model & Enhancements

Super extreme efficiency in Excel

Video Length / Estimated Total Course Time:
5 hours / 10 hours

Individual Course Price:

$600

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Layer a complex LBO model on top core standalone projection model and build one of the most dynamic, sophisticated and complex LBO models out there. This is a highly complex and a very advanced modeling class and requires an absolute grasp of all basic and advanced accounting and financial concepts. Your finished LBO model will be a highly versatile and functional financial model able to capture and sensitize a great deal of inputs to project a realistic and more precise outcome including the ability to toggle between status quo, standalone model vs. all-out LBO vs. partial recap. The core LBO model serves as the beginning model for the target company in our Complex, Super-Advanced Merger Modeling course.

Significantly enhance the LBO model by incorporating the following: PIKs (Paid-In-Kind), warrants and partial, less than 100% recapitalization. Further modify LBO model for mezzanine debt, non-cash interest, issue warrants and modify equity acquired. Incorporate all enhancements into end-all IRR analysis by significantly scaling out returns calculation via massive triangulation of cash flows.

Standalone Projection Model

Build standalone, fully-integrated projection model that serves as the core model for the LBO model and to check final LBO model against status quo, no transaction scenario.

Mirrors our Advanced Financial Modeling – Core Model course

LBO Summary

Layer LBO model on top by modifying core standalone projection model

Build the ever-so-critical "LBO Summary" page that controls all the drivers and inputs of the LBO model: valuation metrics, maximum debt capacity, Sources and Uses of Funds

Sensitize the LBO with the following options: recapitalization vs. purchase accounting, interest rate scenarios, refinancing scenarios

Incorporate proper accounting treatment of expenses (debt transaction financing fees, tender costs and transactions costs)

Calculate equity sources and rollover equity and financial implications

Create Pro Forma capital structure and opening balance sheet incorporating transaction adjustments

Calculate goodwill incorporating the FAS 141 and 142 goodwill amortization rules

Toggle between various LBO scenarios and no transaction for valuation purposes

Balance Sheet & Cash Flow Statement Adjustments

Translate LBO summary and deal structure into Pro Forma Opening Balance Sheet

Balance Sheet adjustments include: cash changes, goodwill, capitalization of expenses, debt and capital structure modifications

Properly calculate and incorporate Pro Forma Shareholder's Equity treatment

Cash Flow Statement modifications including updating existing share repurchase and dividends model

Expanded Debt Sweep and IRR

Debt Sweep expansion including integrating and sweeping additional debt tranches

Expand debt sweep to account for new debt issued and discretionary cash flow recapture

Construct credit & leverage ratios and automate credit ratings

Create IRR (internal rate of return) analysis to evaluate financial sponsor returns

Complete complex LBO model with Status Quo, standalone model vs. all-out LBO toggle

Introduce enhancements and complications into your LBO model to account for various transaction structures and more complex securities typically issued in an LBO transaction.

Incorporate mezzanine securities with PIKs (paid-in-kind)

Account for dilution due to warrants attached to preferred securities

Enhance LBO model to dynamically incorporate recapitalizations (vs. full LBOs)

Properly modify and significantly expand IRR analysis to include effect of enhancements

Prerequisites:

Accounting & Financial Statements Integration

Company Profiles and Corporate Valuation Methodologies

Company Overview and Basic Financial Modeling

Advanced Financial Modeling – Core Model & Enhancements

M&A Deal Structuring and Merger Modeling Basics

LBO Overview and Quick & Dirty LBO Model

Super extreme efficiency in Excel

Video Length / Estimated Total Course Time:
8.5 hours / 10 hours

Individual Course Price:

$600

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Learn how to analyze and value distressed companies and securities undergoing restructuring or bankruptcy process. First, appreciate and understand the historical perspective and context of the distressed market. Then, explore various opportunities in distressed investing from securities types to investment strategies. Properly identify and isolate the true sources and drivers of returns from supply & demand to operational changes to market rebound to recapitalizations. Quantify and comprehend the dramatic changes to a distressed firm's capital structure and the implications on the valuation process and realignment of economics. Understand the reorganization and bankruptcy process, including DIP (debtor-in-possession) financing, Section 363 sales (stalking horse), Chapter 11 reorganization, and Chapter 7 liquidation. Fully comprehend the key critical covenants required involved in distressed securities as well as the entire turnaround & restructuring process by identifying key parameters for successful business plan implementation.

Understand distressed investing, different investment strategies & valuation and bankruptcy process

Comprehend capital structure pre- and post-petition, significant of identifying fulcrum security

Comprehend the complexities and nuances involved with distressed analysis

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Video Length / Estimated Total Course Time:
2.5 hours / 4 hours

Individual Course Price:

$500

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Learn how to model and value distressed companies and securities undergoing restructuring or bankruptcy process. Build upon our Distressed Investing Overview course by quantifying the dramatic changes to a distressed firm's capital structure and the implications on the valuation process and realignment of economics. Build robust distressed sensitivity financial model. Learning objectives include: model out sample distressed company on a standalone basis, with and without restructuring; incorporate detailed valuation sensitivity to identify key value drivers in a distressed situation; analyze the fulcrum security based on various valuation and leverage scenarios.

Distressed Financial Modeling

Summarize pre-petition capital structure of distressed situation & determine normalized valuation

Construct standalone Income Statement project of distressed company

Layer on various restructuring and turnaround scenarios

Evaluate & analyze decision to restructure and understand financial implications on valuation

Construct super-dynamic and flexible model to automate new vs. old cash flow capital structure

Distressed Financial Modeling & Sensitivity Analysis:

Construct robust sensitivity analysis to determine ultimate recovery to capital structure classes

Sensitize distressed model based on leverage, valuation, new pro forma capital structure

Analyze what constitutes a "bad" deal and its implications for the distressed investor

Understand and appreciate various financial stakeholders and inherent conflicts of interest

Quantify and evaluate the importance of determining the right fulcrum security

Prerequisites:

Distressed Investing Overview

Video Length / Estimated Total Course Time:
3 hours / 5 hours

Individual Course Price:

$500

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Balance sheet based companies, such as banks, play by different rules and methodologies based on the unique nature of their business. Focus is placed on our Commercial Banks financial statements primer which dives deep into a bank's unique financial statement terminology and drivers. Understand how to analyze a bank and why the standard financial analysis and valuation methodologies that apply to most companies do not apply to industries that "use money to make money". Start with a brief overview of the main banking functions (commercial, investment, asset management) and quickly turn to the quality of book of loans and analysis of net vs gross charge-offs vs provisions, etc. Understand the critical credit ratios and capital adequacy analysis as well as Tier 1 and II definitions and Basel II impact. Crystallize the impact of Interest Rates, importance of term structure and credit spreads and implications on a bank's profitability. Examine best practices in calculating net interest income via average asset and liability balances on the income statement. Dive into an analysis of Balance Sheet assets & liabilities and articulate the drivers of EPS growth. Wrap up by analyzing valuation parameters: key banking valuation multiples (PE, PEG, Book Value, ROE).

Banking Industry Overview

Overview of main banking functions (commercial, investment, asset management)

Quality of book of loans and analysis of net charge-offs

Critical credit ratios and capital adequacy analysis; Tier 1 and 2 definitions and Basel impact

Impact of Interest Rates, importance of term structure and credit spreads

Banking Financial Statement Terminology & Drivers

Net Interest Income Margin (Interest Expense net against Revenue not COGS)

Analysis of Balance Sheet Assets & Liabilities

Drivers of EPS growth

Valuation Parameters: key banking valuation multiples (PE, PEG, Book Value, ROE)

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Video Length / Estimated Total Course Time:
2.5 hours / 4 hours

Individual Course Price:

$250

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Build a basic, streamlined bank financial model that builds upon the bank terminology in our Bank Industry Primer course. Before diving deep into the complex nuances of our Advanced Bank Financial Model, really solidify your understanding of developing the logic in loan losses and provisions and its impact on the rest of the larger bank financial statements. Perform quick back-of-the-envelope calculations for key Balance Sheet items such as Interest Earning Assets and Interest Bearing Liabilities, which yield Net Interest Income. Estimate and calculate capital adequacy ratios to wrap up your summary simplified basic bank model.

Prerequisites:

Bank Industry Primer

Video Length / Estimated Total Course Time:
2 hour / 3 hours

Individual Course Price:

$250

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Construct a more robust bank financial model by building a bank balance sheet and derived income statement. Project gross loan balance, provisions for credit losses, gross charge-offs, recoveries, net charge-offs, net loan balance based on important key trends and ratios. Predict the critical funding requirements on the liability side of the balance sheet to support the loans and asset side. Learn the techniques and best practices to balancing the bank model. Examine different techniques to estimate the crucial interest-earning assets and interest-bearing liabilities. Estimate asset yield, funding costs and net interest spread to minimize forecasting error. Identify line items that constitute non-interest fee revenue beyond using simple percent growth rates. Incorporate and integrate provision for credit losses. Calculate compensation and overhead expenses and leave with a completed balance sheet and income statement. Make sure you master the concepts in this Intermediate class before diving into our Advanced Bank Financial Modeling course.

Prerequisites:

Bank Industry Primer

Basic Bank Financial Modeling

Video Length / Estimated Total Course Time:
2 hour / 3 hours

Individual Course Price:

$250

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The standard financial analysis and valuation methodologies that apply to most companies do not apply to industries that "use money to make money". Balance Sheet based companies, such as banks, play by different rules and methodologies based on the unique nature of their businesses. First, start off with an interactive primer on commercial banks and their financial statement terminology and drivers. Then, build a fully integrated bank financial model that addresses the key drivers of profitability, cash flow, and valuation. Focus is placed on: projecting the Balance Sheet line items which drive the entire model; estimating interest-earning assets and interest-bearing liabilities which drives profitability; projecting loan portfolio growth, provisions for credit losses, and net charge-offs which determine overall impact on the financial statements. Complete the model by projecting different fee revenue sources and integrating the Cash Flow Statement. Finish the model by calculating and analyzing capital adequacy ratios, financial performance indicators and valuation metrics.

Balance Sheet:

Project gross loan balance, provisions for credit losses, gross charge-offs, recoveries, net charge-offs, net loan balance based on important key trends and ratios

Analyze detailed components of and balance scope vs depth in projecting mix of loan portfolio

Project the critical funding requirements on the liability side of the Balance Sheet to support the loans and asset side of the Balance Sheet based on bank modeling best practices

Dynamically calculate the critical fed funds sold and purchased line items

Properly incorporate the equity account based on financing activities from Cash Flow Statement

Calculate crucial interest-earning assets and interest-bearing liabilities from the Balance Sheet

Estimate asset yield, funding costs and net interest spread to minimize forecasting error

Income Statement:

Calculate future Net Interest Income and margin from IEA and IBL

Project line items that constitute non-interest fee revenue beyond using simple % growth rates

Incorporate and dynamically integrate provision for credit losses on IS and BS

Estimate compensation and overhead expenses to round out the Income Statement

Correctly incorporate and integrate share buybacks and issuances, treasury options, restricted stock units and stock-based compensation into all three financial statements (IS, BS, CF)

Cash Flow Statement:

Construct automated Cash Flow Statement based on the Income Statement and Balance Sheet

Differentiate between a bank's financial statements by properly allocating and including correct components of CFO, CFI and CFF

Understand and appreciate which line items are impossible to calculate independently and must be lumped and grouped together to arrive at the net impact instead of tediously (and incorrectly) trying to project every single item

Build more supporting detailed schedules to project dividends and stock repurchases and issuances and have it properly flow through the rest of the financials

Financial & Capital Ratios and Valuation Metrics:

Construct and analyze internal profitability ratios to analyze core performance of the bank

Calculate profitability ratios and asset utilization ratios for direct comparisons

Reconstruct and estimate Tier I and Total Capital (Tier I and II) , risk weighted assets, adjusted assets and corresponding capital adequacy ratios for regulatory supervision

Calculate current market multiples and valuation metrics relevant for a bank

Prerequisites:

Basic Financial Modeling

Advanced Financial Modeling – Core Model

M&A Deal Structuring

Merger Modeling Basics

LBO Overview

Quick & Dirty LBO Modeling

Efficiency in Excel

Video Length / Estimated Total Course Time:
5 hour / 9 hours

Individual Course Price:

$750

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Balance sheet based companies, such as insurance companies, play by different rules and methodologies based on the unique nature of their business. Focus is placed on our Insurance Industry primer which dives deep into an insurance company's unique financial statement terminology and drivers. Distinguish between P&C (Property & Casulaty) and L&H (Life & Health) insurance companies. Comprehend all the major players along the insurance spectrum from retail to wholesale brokers, to MGAs and MGUs and captive carriers and much more. Understand the different types of insurance, reinsurance and their financial statement impact. On the Income Statement, differentiate between the different types of premiums (direct, ceded, net, written, earned); comprehend loss triangles and the main differences between statutory vs GAAP accounting. On the Balance Sheet, understand key assets line items (premiums receivable, reinsurance recoverable, prepaid reinsurance premiums) as well as the liabilities (loss & lae reserve, unearned premium reserve). Understand insurance valuation parameters: key insurance multiples (PE, book value, premium/surplus).

Insurance Industry Overview

Types of Insurance: Property & Casualty vs Life & Health

Insurance industry players and their functions, roles and value-add

Modern insurance industry structure

Reinsurance and retrocession: types (quota-share vs. XOL) and their impact on financials

Insurance Financial Statement Terminology & Drivers

IS: Premiums: Direct vs Ceded vs. Net and Written vs. Earned vs. UEPR

IS: Losses Incurred and LAE Incurred (ALAE vs ULAE) and Commissions vs. DAC

Statutory vs GAAP Net Income – main differences

BS Assets: Premiums Receivable, Reinsurance Recoverable, Prepaid Reinsurance Premiums

BS Liabilities: Loss & LAE Reserve, Unearned Premium Reserve

Valuation Parameters: key insurance multiples (PE, Book Value, Premium/Surplus)

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Video Length / Estimated Total Course Time:
2.5 hours / 4 hours

Individual Course Price:

$250

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Build a basic, streamlined insurance company financial model that builds upon the insurance financial statements terminology in our Insurance Industry Primer course. Before diving deep into the complex nuances of our Advanced Insurance Company Financial Model, really solidify your understanding of the major items on an insurance company's Income Statement and Balance Sheet. Take the time to further immerse yourself with understanding insurance.

Project written and earned premiums and unearned premium reserve

Calculate Loss & LAE and reserves based on a simple two-year incurred/paid logic

Construct basic Income Statement, distinguishing between Underwriting Income and GAAP

Construct simplified Balance Sheet – does not incorporate all major GAAP "grossed up" line items

Utilize short cash flow sweep to balance the mini-model

Perform quick Statutory Adjustment from GAAP financials

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Insurance Industry Primer

Video Length / Estimated Total Course Time:
1.5 hours / 3 hours

Individual Course Price:

$250

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Build a fully integrated, scalable, new insurance company model including detailed build-up by line of business from Gross Written Premiums to Net Premiums down to Underwriting Income. Consolidate the lines of business performance into a GAAP Income Statement with statutory adjustments. Integrate income statement projections with a self-balancing balance sheet, an automated cash flow statement and the balancing cash flow sweep schedule. Learning objectives include: build an integrated set of financials, including LOB, income statement, balance sheet & cash flow; project direct, ceded and net premiums and underwriting income based on assumed loss triangles; consolidate multiple lines of businesses, calculate GAAP and Stat Net Income with Tax Schedule; project self-balancing balance sheet including items such as premiums receivable and recoverables.

Line of Business Breakdown:

Project gross written and earned premiums, from direct down to ceded and net

Incorporate fundamentals drivers of premiums including premiums growth and rate changes

Calculate unearned premium reserve and flow that back into larger financial model

Calculate Loss & LAE and reserves – construct critical paid and reserve loss triangles based on payout patterns and different "tail" assumptions

Estimate ceded quota share and XOL amounts, which results in the "grossed up" Balance Sheet

Generate net premiums, losses, commission expense and underwriting income

Consolidate multiple lines of business into Consolidating Income Statement

Income Statement:

Calculate all revenue items including various top-line premiums and investment income

Calculate total expenses including underwriting expenses and other relevant expenses

Tax schedule to properly adjust for deferred acquisition costs (DAC) and any NOLs

Adjust from GAAP Net Income to estimated Statutory Net Income

Balance Sheet:

Project cash & invested assets balances, which is the ultimate balancer for insurance companies

Project premiums receivable, reinsurance recoverables and other relevant insurance assets

Derive loss reserves, unearned premium reserves, and other relevant insurance liabilities

Learn how to cast a proper GAAP Balance Sheet based on these "grossed up" balances

Project shareholders' equity account including APIC, retained earnings, etc

Cash Flow Statement and Sweep:

Calculate CFO (including working capital), CFI and CFF

Build cash flow sweep to capture any shortfalls / build-up in cash to balance the entire model

Build interest schedule to fully integrate the model

What are circular references, why should they be avoided and how to get around circular references

Internal Rate of Return (IRR):

Project returns to financial sponsor / investor based on financial model

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Insurance Industry Primer

Basic Insurance Company Financial Modeling

Video Length / Estimated Total Course Time:
5 hours / 9 hours

Individual Course Price:

$750

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Evaluate the financial feasibility of a greenfield real estate development project. Determine the valuation of an empty plot of land by developing and building different lots, houses and condos. First, incorporate infrastructure costs required for a master plan development. Then dynamically differentiate among developing empty lots, building single family houses, and constructing & selling condominiums. Account for variability in construction timelines for different types of properties and sensitize the master financial model for various per unit and per square foot costs as the project is in planning, construction and post-construction phases. Learn how to quickly modify assumptions to customize the model to reflect a poor operating environment as the pace of lot sales significantly decline. In addition, learn how to determine optimal funding mix of equity vs. debt based on project cash flows and IRR.

Build a sample master plan which involves buying raw land, creating community-wide infrastructure (shared utilities and resources that didn't previously exist) and then constructing buildings for sale or rent

Understand timeline and construction costs associated with common land and unit specific development

Model out monthly revenues based on assumptions regarding pre-sales volume, deposits, and various phases of planning, construction and post-construction

Map out draw down of construction costs and final cash flow stream which dictate capital required, influencing IRR and multiple of capital

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Video Length / Estimated Total Course Time:
2 hours / 3 hours

Individual Course Price:

$250

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Evaluate and analyze the acquisition, construction and renovation of a boutique hotel. Quantify hotel-specific construction costs and Sources & Uses of Funds. Perform detailed construction loan analysis that rolls into larger debt funding facility. Funnel into the core projection, estimating REVPAR (Revenue per available room), various revenue streams and operating expenses. Compute management incentives and ultimately roll into Net Cash Flow and IRR.

Build a sample hotel investment analysis which involves buying land, constructing or renovating a new boutique hotel, industry standards in raising debt capital and of course ultimately, P&L and cash flow analysis to determine returns

Model out detailed construction loan analysis with various drawdown percentages and interest reserves which feeds the amortization schedule of larger debt funding facility

Construct projection model based on key factors such as room-nights available, occupancy rates, daily room rate, REVPAR and other relevant factors

Prerequisites:

Accounting & Financial Statements Integration

Corporate Valuation Methodologies

Basic Financial Modeling

Video Length / Estimated Total Course Time:
1.5 hours / 2 hours

Individual Course Price:

$250

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NOTE:
Our REIT Model is not yet available in our streaming-video online format; however, we do make it available for purchase. The REIT Model starts at $750 USD (see below), which includes access to our Core Model online class, completed industry model and an optional half hour consultation with Hamilton Lin, CFA, our President & Founder, after you have reviewed the model. See details below:

1) ONLINE ACCESS
Our REIT Model builds upon our Advanced Financial Model - Core Model online course. The "Core Model" builds the fully integrated model but is not REIT- specific (actually it uses a retail company with base-case accounting). Below are the following purchase options for our REIT-specific courses:

Completed, standalone REIT model (Model)*: $750
Model + 1 month online access to Core Model: $900
Model + 6 month online access to Core Model: $1,000
Optional Consultation to review model: $500 for half hour (see below)
* Model also includes any relevant industry overview slides.

2) INTERACTIVE, EXCEL-BASED MODELING
The above referenced "Core Model" course is excel-based modeling. Pls see http://www.wstselfstudy.com/package3.html for more information. Click on video learning platform and product demo links to learn more. Note: Basic excel skills are required (and sufficient) as the Core Model course will get you up to speed on Excel shortcuts and model building best practices very quickly.

3) TIME TO COMPLETION
The Core Model is about a full day of work. You can break up the course however you like, based on your free time - an hour here and there, etc. Hence, we allow for different duration options based on your timing and availability. Add to that the amount of time it takes you to go thru the completed industry specific model supplied to you.

4) CONSULTATION
Hamilton Lin, CFA is our President and Founder. He is all over youtube (search for wall st training). He personally constructed the industry specific models. The consultation would be done via conference call at a mutually convenient time to be arranged after completion of the Core Model online course and going through the industry specific model.

REITs, REIT Terminology and REIT Market:

Overview of REITs, terminology and legal structure (ie UPREIT)

REIT profitability and performance metrics including FFO, AFFO, straight-lining and FAS 141

Acquisitions:

Model out future quarterly projected acquisition volume based on historical trends

Estimate revenue, expenses, margins and NOI

Calculate associated estimated depreciation expense

Dispositions:

Model out future quarterly projected dispositions based on historical trends

Estimate revenue, expenses, margins and NOI

Estimate gross proceeds, gain/loss, net book and change to accumulated depreciation

New Development:

Model out future quarterly projected development starts and completions

Estimate revenue, expenses, margins and NOI

Calculate net change to development properties, construction in process and investments

Income Statement:

Consolidate acquisitions, dispositions & development figures into Consolidating Income Statement

Calculate revenue and NOI including rental revenue and real estate expenses

Calculate total expenses down to EBITDA, Net Income, FFO and EPS

Balance Sheet, Cash Flow Statement and Sweep:

Project investments, CIP, land under development and all asset and liability balances

Calculate CFO (including working capital), CFI and CFF items specific to REITs

Build cash flow sweep to capture any shortfalls / build-up in cash to balance the entire model

Build interest schedule to fully integrate the model

Incorporate capitalized interest expense estimates, convertible notes and share repurchases

What are circular references, why should they be avoided and how to get around them

Prerequisites:

Accounting & Financial Statements Integration

Basic Financial Modeling

Advanced Financial Modeling – Core Model

Video Length / Estimated Total Course Time:
5 hours / 7 hours

Individual Course Price:

$750

Click here to register now!

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