Financial Modeling in Excel

• Overview of this Training:
  Financial Modeling is a quantitative representation of a company’s present and future business operations. Companies of all types and sizes use Financial Modeling every day to analyze and plan their business activities. Financial Modeling / Forecasting serves as the foundation and basis of standard financial accounting reports, including the Statement of Financial Position and the Statement of Comprehensive Income as well as the Statement of Cash Flows.

• Topic to be covered:
   Financial Forecasting and Income Statement
   Cash Flow calculation, Debt finance
   Fixed Assets, Balance Sheet & Detailed Tax Computations
   Shareholdings, Dividends, and Goodwill & Sensitivity Analysis
   Discounted Cash Flow Valuation, Ratios & Weighted Average Cost of Capital
   Quality Control & Finalization of the Model

• The objective of this Training
  To forecast financials is a logical, step-by-step process, where each component builds upon or feeds into another component. Financial modeling is an integral part of any investment decision process as well. Forecasting future financial data helps to meet up the budget process of any organization. The course on financial modeling in Excel is designed to enable the participants to review financial statements step by step.

• Session 1: Income Statement
   The first step when building any financial model
   Items included in an income statement
   Use the order of items

• Session 2: Introducing a Cash calculation
   The importance of cash and cash flows
   Difference between cash flows and accounting profits
   Detailed cash calculation showing all cash flows
   Working out interest on cash without resorting to circular references
   Time-weighted average cash calculations
   Types of debt used by companies

• Session 3: Fixed Assets
   What fixed assets are and why do we use depreciation to spread their cost
   The importance of not over-depreciating assets
   Straight line and reducing balance methods of calculating depreciation
   How to build a fixed asset when you only have very restricted information
   Alternative ways of calculating fixed asset figures with more information

• Session 4: Balance Sheet
   Building the forecasted Balance Sheet
   Backing schedules
   Using ratios to calculate receivables, payables, and inventory
   Using the correct type of backing schedule
   Incorporating error traps

• Session 5: Tax Computations
   Difference between accounting and taxable profits
   Main differences between different tax jurisdictions around the world
   The basic steps involved in adjusting from accounting to taxable profits
   Calculating capital allowances (tax depreciation)
   How to lay out a tax computation
   How to deal with tax losses
   Deferred tax computations and provisions

• Session 6: Shareholdings, Dividends, and Goodwill
   Different types of share
   The similarity of the backing schedules
   Dividends paid to each type of shareholder
   How to calculate dividends on preference shares
   Using the payout ratio to calculate dividends for ordinary shareholders
   How ‘Goodwill’ arises
   How goodwill is treated under various tax jurisdictions

• Session 7: Sensitivity Analysis
   What sensitivity analysis is
   Can easily be added to a model
   Importance of having a well-structured model before trying this
   Recap on the calculation of inflation factors
   Two different ways of including inflation in a model
   Using cut & paste and copy & paste to ensure that all references to an input number are
  properly uplifted throughout the model
   The importance of having backing schedules that allow you to trace each figure back from a
  model’s report through the backing to the input sheet

• Session 8: Discounted Cash Flow Valuation
   The theory behind DCF Valuation and Its Importance
   The problems inherent in the assumptions behind DCF theory
   How to calculate the DCF valuation of a company
   Need to use as many different tools as possible when valuing a company

• Session 9: Weighted Average Cost of Capital
•  Calculating the cost of debt, ordinary shares, and preference shares
   Using the market values of the individual instruments to give a weighted average
   Which WACC figures should be used in an acquisition model
   Working out separate WACCs for each year for use in the DCF valuation

• Session 10: Quality Control
   The critical importance of Quality Control when Developing any model
   Methodology for running quality control tests on a model
   Presenting sector-wise modeling

Speakers Profile:
M. Hasan Haider, FCCA, FCMI

Mr. Hasan Haider is the co-founder and Managing Partner of VfM Advisory Services. He is a seasoned investment banker and transaction advisor for the last 22+ years in broad finance and investment banking areas on a variety of projects and sectors (Aviation, Motorways, Tourism, Industrial parks, ports, renewable energy, wastewater, public/social infrastructure, real estate, healthcare, and Capital Market Instruments). He has strong knowledge of Project Feasibility and Finance Procedures, Financial Modeling, Project Structuring, Legal Aspects and Covenants, Business development and operation with relevant stakeholders, and identifying projects and investments to bid on and work on. Before joining VfM, he was engaged in a World Bank mission in Afghanistan for 3 years to develop the PPP projects with the Central Partnership Authority (PPP Authority) of the President’s office of the Afghanistan Government as the Project Director. He was the CEO of Asian Tiger Capital Partners AMC and worked with many prominent investment banks in Bangladesh namely BracEPL Investments, LR Global Bangladesh AMC, Dhaka Stock Exchange, and Alif Assets Management since 2000. He has strong national and international institutional relationships for arranging finance, merger & acquisition, arranging consortium, and transaction advisory activities. Mr. Hasan Haider is a Fellow member of the Association of Chartered Certified Accountants (ACCA) and a Fellow member of the Chartered Management Institute of the UK. He is the President of the Ethical Accounting Society of Bangladesh for 2022-23.