Financial Modelling Courses

Quartic Training runs three distinct financial modelling courses: Essential Financial Modelling; Modelling Mergers and Acquisitions; and Reviewing Financial Modelling.

Detailed outlines of each course can be found below.

 

Essential Financial Modelling

Course Details: 

Duration: 2 days or 4 evenings

Level: Intermediate

Prerequisites: Basic understanding of accounting and a basic knowledge of Excel

Suitable for: Corporate financiers, transaction services and other professionals

Download the course outline here

Course Content:

First Steps

• Alternative model layouts
• Planning the flow of information through a model
• Simplicity is the key to producing clear models
• Initial steps required to set preferred defaults for Excel

Building a Model

• Importance of separating input data, calculations and reports
• Maintaining a logical order in the model encourages logical thought processes

Modelling Cash and Interest on Cash

• How the cash calculation is central to any good financial model
• How to model interest on cash without creating circular references

Income Statements and Balance sheets

• Typical layout of the most common financial statements – What is shown where
• Alternative ways of modelling tangible fixed asset to ensure they are not over-depreciated
• Using ratios to calculate working capital items
• How to include goodwill, shareholdings and dividends in a model

Sensitivity Analysis

• How easy it is to add sensitivity analysis to a well written, existing model
• Alternative ways of including sensitivity analysis and how longer ways are normally clearer

DCF Valuation

• Basic theory behind discounted cash flows and valuations based on them
• How best to lay out a DCF valuation calculation and the steps required to obtain a result

Graphics & Data Tables

• How to produce data tables – one of Excel’s most useful features
• Producing meaningful graphics based on the results of data tables

Course Includes: 

Numerous hands-on exercises

Single case study that develops throughout the course 

Certificate of attendance

 

Modelling Mergers and Acquisitions

Course details: 

Duration: 2 days or 4 evenings

Level: Advanced

Prerequisites: Good understanding of modelling single companies

Suitable for: Corporate financiers, transaction services and other professionals

Download the course outline here

Course Content:

Preparing a Single Company Model for Inclusion in an Acquisition Model

• How acquisition models differ from single company models
• Restating accounts using a date other than the existing year end
• Splitting the year of acquisition into a pre-acquisition and post-acquisition periods

Consolidation

• When accounts should be consolidated and the theory behind consolidation
• Combining subsidiary and associated company results into consolidated accounts
• How group reserves and minority interests are treated

Consolidated Income Statement

• Shortcuts to speed up writing backing schedules for the consolidated income statement
• Using Excel text formulae in backing schedules to make writing them even faster

Consolidated Balance Sheet

• How to deal with group reserves and goodwill arising on consolidation

Funding the Acquisition

• Incorporating a range of new financial instruments to fund an acquisition
• Coding scheduled repayments for debt
• How to include cash sweeps into the funding repayment

Mergers

• Difference between mergers and acquisitions
• Effect on group accounts of using merger accounting
• When merger accounting may legally be employed

Excel Hints, Tips & Tricks

• Techniques for writing robust, powerful models that retain simplicity in their calculations
• How to use of some of the less well understood teatures of Excel

Course Includes: 

Concentration on hands-on exercises

Single case study that develops throughout the course 

Certificate of attendance

 

Reviewing Financial Modelling

Course details: 

Duration: 1 day or 2 evenings

Level: Intermediate / Advanced

Prerequisites: Basic knowledge of how to write a “best practice” financial model

Suitable for: Corporate financiers, transaction services and other professionals

Course Content:

What makes a model “best practice”

• Consistent formulae copied across each entire row
• Everything laid out logically and clearly
• Nothing hidden

Methodology used to review financial models

• Using Excel to check that formulae have been copied consistently across each row
• Situations where consistent formulae cannot be used when writing a model

Identifying and investigating places containing inconsistent formulae

• Work is carried out  on a model that was handed out at the start of the class
• Determining whether inconsistencies found are unavoidable or are due to errors
• Grading the errors depending on their impact on the overall result

Thoroughly checking the logic contained in one entire column of the model

• The most time consuming part of any model review
• Every cell reference, every operation, every function, absolutely everything needs to be checked

Reporting the shortcomings and errors discovered

• All shortcomings need to be recorded on paper and discussed with the model developer
• Developer will amend the model to correct the errors or shortcomings that have been identified

Re-reviewing the amended model

• Review the amended code to ensure that it answers the problem that was identified originally
• Using spreadsheet comparison tools to check that no other cells have been altered

Reviewing sensitivity analysis in a model

• Methodology used to ensure that an sensitivity analysis code in working properly

General areas to consider when carrying out a model review

• Risk of giving wrong opinion, sign off letters, how much comfort can be given

Course Includes: 

Mix of lectures and hands-on exercises

A single case study model is used for all hands-on work, giving continuity to the course. 

Certificate of attendance