PC Enhanced Core

Description

Utilizing the same case study based approach delivered for our corporate clients, these courses provide hands-on, real world, practical applications of the standards and methods that a professional needs.

The Enhancedformat incorporates robust features that have traditionally only been available to our on-site training clients:

• Accounting Pre-assessment and Adaptive Pre-work
• Our full suite of in-class technology to maximize engagement and learning styles
• Quizzes to make sure that the prior day’s skills are retained and mastered
• After lecture assessments with a dedicated teaching associate to answer questions

Led by our experienced instruction team of former practitioners, you get a unique blend of industry insight combined with a passion for teaching. The average TTS instructor has been part of the team for 8.5 years.

What’s Included

Instructor-led classroom training
Ongoing instructor support
One-year online access to course materials, Excel files, and these self-study courses for additional reference and review:
• Corporate Valuation
• Excel Best Practices
• Financial Modeling
• M&A Modeling
• LBO Modeling

Schedule
The typical training day, which will start promptly at 9am, will include approximately 6-8 hours of live instruction and exercises, followed by 2-3 hours of evening assignments. A Teaching Associate will be available to answer questions about coursework or assignments in the evening. There will be no evening assignments on the last day of the course (Friday) when class will finish at 5pm.

Prerequisites
There are no prerequisites for this course.

What you will learn

Day 1:  Public & Acquisition Comparables and Discounted Cash Flow Analysis

Overview of valuation methodologies and fundamental concepts
Public Comparables Analysis:

• Choosing the appropriate peer group
• Gathering public information
• Calculating market and enterprise value
• Normalizing for non-recurring items
• Calculating latest twelve months (LTM)
• Calculating relevant multiples
• Deriving an implied valuation range
• Analyzing multiples and a comparables universe
• Exercise: “Spreading public comparables” for the case company

Overview of Acquisition Comparables Analysis:

• Choosing the appropriate deal list
• How control premiums and synergies impact multiples
• Sources of public information

Discounted Cash Flow Analysis:

• Strengths and considerations of a DCF analysis
• Deriving a weighted average cost of capital (WACC)
• Discounting unlevered free cash flows
• Estimating the terminal value (exit multiple vs. perpetuity growth rate approach)
• Determining the valuation range based on DCF analysis
• Exercise: Adding DCF output to a 3-statement model for the case company

Analyzing Results:

• Imputing valuation ranges
• Analyzing a “Football field” for the case company based on different valuation methodologies

Days 2 and 3:  Excel, Financial Modeling & Advanced Sensitivity Analysis

Mastery Quiz: Comparables and DCF
Overview and introduction to financial modeling
Excel Best Practices and Efficiencies
Construction and Application of:

• Core statements
• Working capital schedule
• Depreciation schedule
• Amortization schedule
• Other long-term items schedule
• Equity schedule
• Shares outstanding schedule
• Debt and interest schedule

Troubleshooting the Model:

• Understanding and controlling for circular references
• Balancing the model
• Making the model “deal ready”

Utilizing the Finished Product:

• Data tables

Advanced Sensitivity Analysis:

• Adding scenarios to the model
• Creating a toggle for cases and naming cells

Day 4:  Merger Consequences Analysis

Mastery Quiz: Financial Modeling

• Concept of affordability analysis
• Overview of SFAS 141/142 and IFRS 3
• Purchase accounting overview
• Creation of goodwill and write-ups, including possible incremental D&A
• Opening balance sheet and purchase accounting adjustments
• Pro forma income statement
• Accretion/dilution analysis
• Credit rating considerations
• M&A transaction considerations(stock vs. cash, social issues, etc)
• Asset vs. stock purchase
• Tax deductibility of goodwill
• Section 338 election
• Exercise: Building an M&A model for a potential acquisition of the case company

Day 5:  Leveraged Buyout Analysis

Mastery quiz: Merger consequences

• What makes a good LBO candidate?
• Concept of value creation via de-leveraging, operational improvements and “multiple expansion”
• Sources of funding for an LBO
• Differing viewpoints for LBO constituents
• Purchase price determination
• Debt capacity and financing options (Pro rata facilities, institutional facilities, mezzanine capital)
• Sponsors equity and internal rate of return (IRR)
• Fundamentals of “recapitalization accounting”
• Mechanics of constructing an LBO model
• Exercise: Constructing an LBO model for the case company