COURSE OBJECTIVES: This course will explain how to analyse a business from a financial perspective using a range of key performance indicators. The analysis will cover profitability, return on invested capital, leverage, working capital management, asset utilisation and cash flow generation.
The learning will be supported by a comprehensive case study which analyses in detail a real company. Different valuation methods are then reviewed including trading multiples, transaction multiples and discounted cash flow valuations. The theory is then applied to value of a real company using the different methodologies.
COURSE CONTENT
- Performance measures – Like for like, gross and operating margins,
- EBIT/EBITDA margins, earning per share
- Return on invested capital
- Leverage – debt/equity, debt/EBITDA, EBITDA/interest cost
- Working capital management – receivable days, payable days, inventory days, the cash conversion cycle
- Asset utilisation
- Cash flow measures – OCF/operating profit, free cash flow
- Enterprise value multiples
- Equity value multiples
- Transaction multiples
- Discounted cash flow valuations – free cash flow forecast, terminal value calculations and WACC
WHO SHOULD ATTEND
This course is suitable for finance managers who are involved in financial statement analysis (from a credit, supplier or financing perspective) and business valuation (mergers and acquisitions, business disposals and shareholder value analysis)
Would you like this course run in-house? Call us on 0207 566 8207 to find out more