Introduction to Corporate Finance

Short course

In City Of London

£ 1,500 + VAT

Description

  • Type

    Short course

  • Aimed at

    For companies and professionals

  • Location

    City of london

  • Duration

    3 Days

This is a three day course on the introduction to corporate finance.

For more information please contact: enquiries@redcliffetraining.co.uk

This course can also be presented in house to a team of people.

Facilities

Location

Start date

City Of London (London)
See map

Start date

On request

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Reviews

Subjects

  • Corporate Finance
  • Mergers
  • Mergers and Acquisitions

Teachers and trainers (1)

Former Practitioner

Former Practitioner

Former Practitioner

Course programme

Course Overview:

The Introduction to Corporate Finance course is suitable for front, middle and back office functions. It aims to explain the main activities involved in corporate finance, the key decisions that corporates have to make and the factors that influence them.

It will assist those that are involved with identifying business development opportunities for clients, cross-selling of related products and risk assessment.

The course is suitable for those with limited or no previous knowledge of corporate finance. It requires familiarity with company financial statements.

The course is very interactive, using real-life examples and case studies designed to illustrate the range of choices available to corporates. Case studies are a mix of generic structures and analysis, with reviews of recent transactions to illustrate the impact of current market conditions. The focus is on UK and European transactions, using examples of UK regulations to illustrate common structures and rules.

Course Content:

Day One

Overview of Corporate Finance

  • Framework for evaluation of corporate finance strategies
  • How do companies maximise shareholder value, what is the role of other stakeholders?
  • Generic strategy models: Company life cycle, BCG matrix, Porter’s Five Forces, SWOT

Case study: Applying strategic analysis

Introduction to Company Valuation

  • Choice of valuation techniques – asset valuation, dividend valuation, SOTP valuations

Case study: When would you consider using dividend valuation?

Multiples Valuation

  • Comparative analysis and selection of comparable companies
  • Traditional ratios (P/E), newer ratios (PEG, relative PEs) and industry specific ratios
  • Enterprise value and use of EV/EBITDA and EV/EBIT

Case study: Participants value an acquisition using historic and prospective multiples

Case study: Selection of appropriate valuation ratios for different sectors

  • Use of comparable transactions

Case study: Assessing argument for premium or discount vs. comparable companies

Cost of Capital

  • The components of Weighted Average Cost of Capital
  • Cost of debt – government bond yield and spreads
  • Cost of equity -application of the Capital Asset Pricing Model
  • Judgement required for equity risk premium and betas

Case study: Participants review beta data to finalise a cost of capital

Discounted Cash Flow Valuation

  • Enterprise DCF and the use of free cash flows
  • Terminal value and alternative methods available

Case study: Choice of projection period and terminal value methods

  • Sensitivity analysis and scenarios

Case study: Participants adjust key variables in a DCF valuation to assess fair value

  • Similarities between DCF and the discounted economic profit approach
  • When Equity DCF should be used as an alternative

Day Two

Strategic Decisions

  • The company life cycle
  • Whether to grow organically or by acquisition

Case study: Evaluating growth options for a business

Acquisitions

  • Types of transactions
  • Availability of synergies and problems in achieving them

Case Study: Valuing synergies and how they could/should be factored into bid price

  • Due diligence: tie-in with warranties and indemnities, confidentiality issues
  • Key differences between public vs. private deals
  • Defence strategies for target companies resisting a hostile bid

Case study: Defence strategies

  • Acquisition success vs. failure

Divestment

  • Options for sellers
  • Finding potential buyers and building up the bids

Case study: Choice of sale method to maximise value

Funding Strategy

  • Choice of optimal capital structure appropriate for the company’s stage of life cycle
  • The effect of capital structure on WACC – adjusting betas for changes in leverage
  • Debt capacity and link to cash flow forecasting used for DCF valuation
  • Relationship between business risk and financial risk
  • Access to debt and equity
  • Credit pricing, significance of credit rating, when bonds offer an alternative to loans
  • Maturities, repayment options and the impact of refinancing risk
  • Motivation for and impact of share buybacks

Case study: Review of corporate funding structures

Acquisition Financing

  • Consideration – how is payment made – cash vs. shares

Case study: Selecting between competing bids for a quoted company

Financing choices for raising cash

  • The role of asset sales and other means of releasing cash

Case Study: How much debt is appropriate to finance an acquisition

  • Impact on EPS and the variables that can influence the financing strategy

Day Three

Initial Public Offerings

  • Rationale for going public and alternatives

Case study: Pros and cons of flotation

  • Stock exchange and market requirements
  • When to use public offering rather than private placement
  • Use of ADRs and GDRs

Case study: Offer structures

  • Fixed price vs. Bookbuilding vs. Tender price

Exercise: Contrasting results from bookbuilding against tender offer

  • Marketing, roadshows, underwriting, role of research
  • The process of an IPO and the role of advisors

Case study: Identify criteria for selection of lead manager(s)

  • Secondary issues – rights issues, block trades – role of the banks and risks

Leveraged Buy Outs

  • Background to growth of the European private equity market
  • The threats and opportunities that private equity represents for corporates
  • LBO transaction types and risks
  • The different types of equity – institutional and management equity

Exercise: Calculating the IRR for a buyout

  • Debt alternatives – senior debt, mezzanine finance, second lien, high yield bonds

Case study: Impact of changing the mix of debt/equity for an LBO

  • Evaluating a buy-out candidate – the golden rules
  • Exit routes and how they’ve been changing
  • Why buyouts succeed or fail

Case study: Review of buyout candidates to select potential winners

What our clients are saying about the course

“High interactive & tailored to individuals”

“Thorough and not too mathematical”

“Applied theories to real life case studies”

“Very thorough professional knowledge & experience of the trainer”

“Great course, pragmatic, interactive approach”

Introduction to Corporate Finance

£ 1,500 + VAT