Corporate Finance Master Class

Corporate finance is an area of growing importance. While the valuation of companies is important, the area of mergers, acquisitions and the raising of capital have become very complicated not least because of the huge increase in regulation worldwide.

New rules now exist on the issuing of prospectuses and mergers. This course gives an introduction to the techniques of valuing companies, an overview of mergers and acquisitions and case studies involving setting up models to deal with the valuation and acquisition of a company.

Agenda

  • Latest valuation techniques
  • Risk adjusted return on capital
  • Pitfalls using the Weighted Average Cost of Capital
  • Buyer and seller Internal Rate of Return

Day One

Corporate Finance and Cost of Capital

  • Understanding financial risk
  • Market risk
  • Credit risk
  • Operational risk
  • Liquidity risk

Leverage

  • Operational leverage
  • Beta Sales & economic cycle
  • Financial Leverage
  • Corporate risk measures in practice

Above average Corporate Returns

  • Return on Capital Employed for your Industry
  • Benchmarking and performance
  • Linking ROCE to business strategy

Shareholder Value

  • Strategy
  • Finance and driving the components of ROCE
  • Mergers and acquisitions and timing the business cycle
  • Management incentives

Essential Elements in Valuation

  • Price vs value
  • Risk measurement
  • Project Financing
  • Cost of Capital

Day Two

Free Cash Flow – A Central Concept

  • Cash Flow Statements
  • International Financial Reporting Standards and their limitations
  • Capital components

Cost of Capital and DCF Valuation

  • Weighted Average cost of capital
  • Beta calculation
  • Discounting exercise
  • Investment horizon

Internal Rate of Return calculation

  • Sensitising valuation analysis
  • Decision-making using the product of valuation techniques and pricing techniques
  • Application of DCF to LBOs and MBOs
  • Application of DCF in valuation of acquisitions
  • Problems with emerging markets

Day Three

Pricing Techniques

  • Pricing Techniques – advantages and disadvantages
  • Selecting comparatives
  • P/E ratios
  • Cash multiples
  • Total enterprise value
  • Comparative ratios
  • Modelling and sensitising the components

Dividend Valuation Model

  • Dividend growth approach
  • Practical problems in its application
  • DCF and dividends
  • Comparison of results to DCF valuation exercise

Economic Value Added

  • Performance evaluation techniques
  • Alpha calculations
  • Analysis of results of analysis
  • Market value added (MVA)
  • Correlation of market price to EVA performance
  • Strategic interpretation of EVA analysis
  • Corporate Finance Professionals
  • Mergers & Acquisitions Personnel
  • Corporate Treasurers & Executives
  • Corporate Advisors & Bankers
  • Business & Financial Analysts
  • Investment Managers
  • Investment Bankers
  • Lawyers & Consultants
  • Finance Controllers
  • Strategic Planning Executives

kodukula

C. Butler

Mr. Butler is an equity and options trader and a former consultant with Lombard Risk Systems London and has also worked with KPMG and PricewaterhouseCoopers. He  graduated from the University of Limerick, Ireland with a degree in Finance.

He has considerable international experience as a trainer in Insurance, Derivative Accounting, Corporate Finance and Derivative Mathematics, working with major banks including BNP Paribas and has advised insurance companies on the implementation of Solvency 2, Embedded Value and Basel 3.

He also specialises in the accounting frameworks particularly insurance (IFRS 4) and financial instrument accounting (IFRS 9). He has conducted in-house courses Morgan Stanley, PricewaterhouseCoopers (Holland), Investec (South Africa) and ABB Switzerland and Asian Development Bank. In addition, he has worked for IIR and Euromoney in Singapore, Hong Kong, Thailand, America and Saudi Arabia.

Mr. Butler has published two books Mastering Value at Risk (Financial Times Pitman) and Accounting for Financial Instruments by Wiley.

Note:  His full professional Biography is available on request.

Venue:

Holiday Inn Hotel, Sandton – Johannesburg

Dates: 13th – 15th June 2017

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