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If every aspiring finance professional trained with us, they'd...

get the finance job they really want.
ace their finance interviews.
breeze through modeling and case study exams.
have many job offers to evaluate.

The only interview prep you'll need.

Real Models

No fake companies; actual companies and their historical data.

Breadth & Depth

Corporate finance, valuation, M&A, LBO, deal structures - you name it.

Ace the Technicals

Confidently tackle any modeling exam, adhering to industry best practices.

Who needs this?

University students gearing up for their interview for:

Summer Analyst Internships Full-Time Analyst Jobs Off-Cycle Positions

… or anyone looking to launch their career and get both feet in the door.

  • Dive head-first into the language of Wall Street
  • Hone bread-and-butter modeling and valution techniques
  • Impress your interviewer - and maybe even teach them something

University Training

We can accommodate student organizations such as finance clubs, investment funds, and business fraternities.

Typically taking place over a weekend, these seminars prepare not only the "hard skills" of finance and modeling/valuation, but also the "soft skills" involved with networking, crafting a resume, and performing well on interviews.

Whether undergraduate or postgraduate, choose from two types of seminars: Financial Modeling & Valuation (most common), or M&A/LBO Modeling (tailored specifically to investment banking careers).

After the seminar's over, you're not left alone. Stay involved in the community with lifetime access to our support forum.

WST has complemented Cornell's curriculum and helped our students connect the dots in class to what is expected of them on the job. In addition, the session included a segment on interview and career development tips. As a result, many of our students felt more prepared for their upcoming interviews and networking opportunities.

Want to lead your group to success in their finance careers? Get in touch today.

Course Sections

Fundamental Concepts

Everyone’s taken different accounting/finance classes (or none at all). To keep things consistent, we’ve put together one canonical starting place for the basics.

All of our training builds upon this: financial statement analysis, corporate valuation, and modeling.

Core Financial Modeling

Get very hands-on in Excel, mastering the modeling techniques and concepts that form the basis for robust, integrated models.

On top of that, learn how to correctly analyze the results and outputs.

Valuation Modeling

Learn how corporations are valued and the major analytical tools that are used. Start by analyzing a $6 billion+ transaction illustrating the importance of capital structure, leverage, and WACC.

We’ll walk through trading comps and deal comps, putting everything together with a relative valuation model.

M&A / LBO Modeling*

Start with M&A basics: the high-level timeline of a deal, common deal structures, accretion/dilution; the works.

Similarly, explore the world of LBOs, including the various factors behind a firm’s candidacy and drivers of value.

This isn’t just conceptual - you’ll apply all of this in a variety of Excel models, ranging from basic to advanced.

*Relevant for certain areas of finance (e.g. investment banking).

Training Methodology

Our approach is to teach you how to fish, rather than give you a fish.

We don't give a one-way lecture where you memorize every cell and formula.

We nudge you toward uncovering answers on your own by leading with the right questions.

The end result? Longer-term knowledge retention that will last an entire career.

I believe three things set WST apart: the instructors who are at the top of their fields, the emphasis on advanced Excel techniques, and the quality of the templates …
We'll arm you with all the technical knowledge you need before the job - and even on the job.
  • Strengthen your existing knowledge and fill gaps
  • Speed through Excel exams with best practices and shortcuts
  • Ace the interview and hit the ground running
We can't think of a better way to prepare for your career in finance.

Get Started

Our Self-Study platform lets you learn at your own pace via instructor-led videos.

Jump start your career and start learning today!

All prices are in USD and denote six (6) months of access. Terms apply.

Detailed Curriculum

Package 1: Basic & Fundamental Concepts

Similar to the Accounting Boot Camp above, this program covers the basics of financial accounting including the major financial statements (Income Statement, Balance Sheet and Cash Flow) and the most important components of each as it relates to financial analysis. Concentration is placed on the integration of the financial statements and provides a full integrated grasp of accounting from a finance perspective.

Financial Statement Analysis
  • Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
  • Components of each major financial statement
  • IS: Revenue and expense items, EBITDA defined and discussed
  • BS: Assets, Liabilities, and Shareholders' Equity
  • CF: Cash Flow from Operations, Investing Activities and Financing
  • Understand how financial statements are inter-related
  • Relationship between the Income Statement and Cash Flow Statement
  • Explanation of Accrued Expenses, Receivables and Payables and how they tie together
Key Ratios
  • Overview and explanation of major financial ratios, including liquidity, asset management, debt management, profitability, and market value ratios
Hands-On Exercise
  • Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive
Prerequisites
  • Desire to learn accounting terminology, general business smarts and common sense
Video Length / Estimated Total Course Time

2.5 hours / 4 hours

“How to Analyze a 10-K” builds upon basic accounting and financial statements concepts to focus on the major components of a 10K SEC filing, including the Management Discussion & Analysis, Financial Condition and Results and how to analyze the myriad of footnotes.

It’s simply not enough to merely analyze the financial statements, but especially critical to plow through and understand the footnotes and the management discussion & analysis, where the most of the qualitative information is contained. The challenge is that there are a myriad of footnotes and figuring out which are the important and relevant ones is no small feat. This course provides the overview and analysis for most major common footnotes and gives you a starting point to plow in deeper when we build our financial models. The irony is that in the process of crunching numbers and building numbers, reading comprehension, particularly on the 10K is probably even more important in terms of getting the right inputs.

Overview & Analysis
  • What is a 10K and how is it different from an Annual Report?
  • Major components of a 10K filing
  • Detailed discussion on the MD&A section (Management Discussion & Analysis)
  • Detailed discussion of all major footnotes and how to analyze and interpret major categories of footnotes: general footnotes, Balance Sheet footnotes, contingencies footnotes, Income Statement footnotes, Capital Structure footnotes, many other footnotes
  • Brief discussion of Proxy statement and its utility
  • Brief discussion and introduction to differences between US and International GAAP
Hands-On Exercise
  • Interactive group project break-out to analyze, compare and contrast 10K's of various companies
  • Concentration on: revenue terminology differences, balance sheet analysis, cash flow analysis, analysis and comparison of footnotes, MD&A / segment breakdown and discussion
Prerequisites
  • Desire to learn accounting terminology, general business smarts and common sense
Video Length / Estimated Total Course Time

2 hours / 3 hours

Learn the basic finance concepts that are the backbone of any financial analysis. An understanding of these basic core tools is absolutely critical to mastering any Wall Street analysis. Topics covered include risk / return trade-offs, time value of money, cost of capital, Gordon growth model and basic valuation theories.

Moving beyond the accounting and 10K analysis, this course provides an introduction to the major concepts in finance that many people take for granted. Understanding financial modeling, valuation, and the capital markets in general would be difficult without a full grasp of these fundamental concepts.

Finance 101
  • Risk / Return: Calculating returns and measuring risk, benefits of diversification (systematic and unsystematic risk, total risk, market risk and firm-specific risk), security market line, capital asset pricing model, beta
  • Time Value of Money: present and future values, net present value, internal rate of return, compounding, discounting, uneven cash flow streams, simple vs. effective rates, periodic rates, CAGR (Compound Annual Growth Rates)
  • Basic Valuation Theories: value of any asset, dividend discount model (theory only!), Gordon growth model, growing perpetuity
  • Cost of Capital: sources of capital, component costs, weighted average cost of capital
Prerequisites
  • Desire to learn finance terminology, general business smarts and common sense
Video Length / Estimated Total Course Time

1.5 hours / 2 hours

Company profiles are the most basic overview and descriptions of a company being analyzed. Profiles supply the most basic and fundamental, yet probably the most important aspects of a company. Gain an introduction and explanation of the major components of a profile for a publicly traded company.

Company Profiles
  • Summary business description and financial summary and trading analysis
  • Stock price charts: price / volume graphs, indexed stock price history, moving averages, shares traded at various prices, forward PE history, historical EBITDA multiple valuation trends, beta and volatility, management and Board of Directors biographies, ownership analysis
Prerequisites
  • Desire to learn finance terminology, general business smarts and common sense
Video Length / Estimated Total Course Time

1 hour / 1 hour

Build very quick financial summary and trading statistics exhibit using historical results, analyst estimates & basic assumptions in Excel. This course will allow you to understand basic structure of building an analysis in Excel and navigating through and becoming efficient in Excel.

Financial Summary
  • Build a very simple financial overview exhibit by inputting historical results, analyst estimates and basic projections
Trading Statistics
  • Build trading statistics exhibit displaying standard market valuation multiples
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
  • Prior experience with Excel, decent ability to type and follow instructions
Video Length / Estimated Total Course Time

1.5 hours / 2 hours

Package 2: Core Fundamental Concepts

Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

Valuation Methodologies
  • How much is a company worth? Why is the current stock price not an accurate indication of value?
  • How do you tell if a company is under-valued or over-valued?
  • Why would one company command a higher or lower premium than its direct competitor?
  • What is the importance between enterprise value and equity value?
  • Why do we include minority interest and exclude capital leases?
  • What is the relevance of capital structure and leverage on a companys value?
  • Why and how is corporate finance so critical to managing a firm's profitability?
  • What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
  • Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
  • What is EBITDA and why is it so important?
  • Utilizing the correct numerator for multiples analysis
  • Calculating implied value based on multiples analysis
  • What is a leveraged buyout and what are the main motives for LBOs?
Case Study Discussion
  • Analysis of "football field" and reference ranges
  • Detailed discussion of the major valuation methodologies, their nuances and application in the real-world
  • Analyzing, comparing and contrasting trading comps, deal comps and premiums paid
  • Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
  • Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
  • Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)
  • How do you approach valuing a company with completely disparate businesses?
Hands-On Exercise
  • Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive
Prerequisites
  • Accounting & Financial Statements Integration
  • How to Analyze a 10K
  • Finance 101: Introduction to Finance
Video Length / Estimated Total Course Time

2 hours / 2.5 hours

This course builds upon, and implements in Excel, the fundamental financial analysis and valuation topics. Create a top-down, five year income statement projection model and then construct a basic discounted cash flow analysis on top of your projection model.

** Don’t get thrown off by the word “basic” - this Basic Financial Modeling serves as the fundamental basis for all of our additional Excel-based courses. Before you “graduate” onto our advanced modeling courses, we HIGHLY recommend you take this course for the full background on working efficiently in Excel the way we want you to, otherwise you may have a much steeper learning curve in our other classes. **

Income Statement Projection
  • Input historical financial results and recast as necessary
  • Calculate historical growth rates and margins which serve as the basis for your projection assumptions
  • Calculate your projected profitability from revenue down to EPS
  • Learn the correct way to calculate diluted shares outstanding
  • Brief discussion and introduction to differences between U.S. and International GAAP
Discounted Cash Flow Analysis
  • How is a discounted cash flow analysis actually constructed?
  • What is the difference between the terminal value and perpetuity growth approaches and what are the implications on value?
  • Learn subtle nuances including the proper figure for "cash flow" in perpetuity growth models
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
  • Company Overview
Video Length / Estimated Total Course Time

4 hours / 5 hours

Build upon Corporate Valuation Methodologies with a short, hands-on exercise to hone in the core concepts in practice before diving into the more advanced valuation modeling topics. Translate the valuation concepts into real-life case study that demonstrates and shows the valuation principles.

  • Calculate current trading and valuation statistics of industry competitors
  • Project value of a company and stock based on estimated industry average valuation multiples
  • Construct a sample DDM and DCF valuation analysis
  • Estimate WACC, component costs of capital and CAPM and incorporate into valuation analysis
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
Video Length / Estimated Total Course Time

1.5 hours / 2 hours

Package 3: Advanced Financial Modeling

Build a fully integrated 5-year financial statement projection model by projecting the Income Statement, Balance Sheet, Cash Flow Statement, the Debt Sweep to balance model and Interest Schedule. This course will allow you to have a complete financial model projecting run-rate profitability, on which you can easily layer valuation and merger models.

5-Year Financial Statement Projection Model
  • How do you project a company's Income Statement from revenues and expenses down to Net Income?
  • What are the different methodologies to forecasting the different types of assets on the balance sheet and how do they compare and contrast with projecting liabilities?
  • How do you project the shareholders' equity account?
  • What is the importance of financial ratios in building the balance sheet projections?
  • How do you approach building an integrated cash flow statement?
  • How do you build each component of the cash flow statement and why is cash the last item to project?
Supporting Schedules
  • Incorporate calculation and payment of dividends into your integrated financial model
  • Emulate announced share repurchase program by estimating implied price and shares repurchased
Integration and Balancing of Financial Model
  • Balance the model using the debt schedule and debt sweep logic - the most important analysis in terms of balancing the model!!
  • How does the cash actually flow through the model?
  • Incorporate automatic debt payments and use cash generated to either pay down debt or build cash
  • How does the revolver facility actually balance the model? Avoid messy nested "if" statements!!
  • How does the balance sheet and financial statements balance by itself without the use of "plugs"?
  • How are the financial statements integrated using the Interest schedule?
  • What are circular references, why should they be avoided and how to get around circular references
Prerequisites
  • Accounting & Financial Statements Integration
  • Company Overview
  • Basic Financial Modeling
  • Efficiency in Excel
Video Length / Estimated Total Course Time

3.5 hours / 5 hours

Build upon completed core model and layer on valuation analysis. Construct DCF valuation model, detailed revenue segment build-up, project more precise depreciation schedule, calculate credit & leverage statistics and ratios, construct a reference range and football field summary valuation. This Enhancements course will allow you to have a much more detailed stand-alone financial model and valuation model!

Enhancements to Core Integrated Financial Model
  • Build a stand-alone depreciation schedule to better estimate working capital changes and free cash flow by depreciating existing PPE as well as new capital expenditures
  • Credit and leverage statistics ratio analysis with automated comparisons vs. S&P rating statistics
Detailed Business Segment Build-Up
  • Model out historical change in key drivers of growth and project future detailed growth
  • Analyze and break down growth based on publicly available data and inputs from 10K filing
  • Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
  • Project future detailed growth assumptions that roll up into larger projection model
Valuation Modeling
  • Model out historical change in key drivers of growth and project future detailed growth
  • Analyze and break down growth based on publicly available data and inputs from 10K filing
  • Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
  • Project future detailed growth assumptions that roll up into larger projection model
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
  • Extreme efficiency in Excel
Video Length / Estimated Total Course Time

3 hours / 4 hours

Further enhance core integrated financial model by building a detailed tax schedule incorporating NOLs (Net Operating Losses), Section 382 limitations on NOL usage and differences between book and tax depreciation. Dive deep into re-calculating depreciation for tax purposes based on accelerated depreciation - MACRS (Modified Accelerated Cost Recovery System) in the US. Incorporate and flow the accelerated tax depreciation into the larger tax schedule to account for differences in GAAP Pre-Tax Income and Taxable Income. Finish up with a quick Residual Income analysis and EVA (Economic Value Added) analysis, which complements our Enhancements Part I course.

Construct flexible Tax Depreciation Schedule
  • GAAP depreciation schedule is off simplistic straight-line assumption while tax write-offs allow for accelerated depreciation schedule
  • Incorporate real-world MACRS schedule (US IRS tax code) to depreciate assets based on various property classes and recovery year
  • Integrate with new capital expenditures assumptions by asset class
  • Compare and contrast with GAAP depreciation
  • Gain better precision into cash flow modeling and working capital line items
Construct and reconcile extremely detailed Book vs. Tax Income Tax Schedule
  • Combine GAAP and tax depreciation schedule into tax schedule for model's deferred tax liability
  • Further enhance detailed tax schedule incorporating NOLs (Net Operating Losses)
  • Incorporate limitations on NOL usage based on change of control provisions
  • Construct detailed accelerated tax depreciation schedules based on MACRS
  • Properly build-up detailed deferred tax assets and liabilities Balance Sheet accounts
Perform and analyze Residual Value and EVA analysis
  • Understand differences among traditional DCF analysis vs Residual Income and EVA analysis
  • Calculate equity capital charge total capital charge
  • Use correct discount rate for each analysis
  • Compare and contrast pros and cons and the purpose of each analysis
Understand differences among traditional DCF analysis vs Residual Income and EVA analysis
  • Calculate equity capital charge total capital charge
  • Use correct discount rate for each analysis
  • Compare and contrast pros and cons and the purpose of each analysis
Prerequisites
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
  • Enhancements to the Core Model - Part 1
Video Length / Estimated Total Course Time

3 hours / 4 hours

Learn how to build detailed revenue and segment build-ups into your larger financial model by quantifying the drivers of growth. Many financial projection models are based off simple revenue growth rate and expense margin assumptions, resulting in reduced precision in the projection model. This course teaches various approaches to true, bottoms-up, fundamental analysis for both publicly trade and listed companies as well as private companies or entities in which you have additional detail. We start by understanding the logic of channel checks and building the case for growth rates based on qualitative analysis and comprehension of industry- and company-specific drivers of growth. We then turn around and quantify our qualitative analysis by incorporating into our financial model on a business and operating segment basis. The results of the build-up analysis rolls into the Income Statement from your core integrated financial projection model. In addition, layer on sensitivity and scenario analysis to easily toggle through various cases, including base (management) case, upside and downside cases.

Detailed Business Segment Build-Up
  • Model out historical change in key drivers of growth and project future detailed growth
  • Analyze and break down growth based on publicly available data and inputs from 10K filing
  • Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
  • Project future detailed growth assumptions that roll up into larger projection model instead of just 10% growth
  • Understand additional granularity for various industries including retail, manufacturing, financial services, energy, etc.
Operating & Division Segment Build-Up
  • Calculate and analyze different operating segments as reported in public filings to roll-up into IS
  • Adjust for extraordinary items by segment based on MD&A and disclosed footnotes
  • Extract, utilize and incorporate volume and pricing increases into operating segment performance
  • Estimate and project future revenue and segment income and allocate for corporate overhead
  • Estimate projected COGS and SG&A on the entire base after operating build-up
Detailed New Business Build-Up
  • Bridge the gap and quantify future, as-yet-unachieved growth initiatives based on concrete assumptions
  • Analysis would roll into core "organic growth" model and sensitized
  • Model out effects of hiring new sales representatives and the associated increased revenue
  • Triangulate new revenue and tiered commission expenses due to renewal business
  • Calculate incremental salary and bonus cost of new sales representatives
  • Calculate additional cost of sales and other expenses related to new business
Detailed Account by Account Build-Up
  • Project sources of revenue based on growth in number of accounts and customers
  • Model out revenue per account and associated commissions and expenses
  • Incorporate rate increases into model
  • Further enhance model via sensitivity & scenario modeling and analysis
  • Detailed build-up consolidates into Consolidating Income Statement which feeds into model
  • Account for inter-company eliminations in historical pro forma model and projections
Sensitivity Analysis and Multiple Cases
  • Layer sensitivity analysis on top of segment build-up to incorporate various assumptions and cases
  • Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases
  • Toggle and sensitize profitability and cash flow of model based on various case assumptions
Prerequisites
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
Video Length / Estimated Total Course Time

4 hours / 5 hours

Package 4: Valuation Modeling Topics

Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

Valuation Methodologies
  • How much is a company worth? Why is the current stock price not an accurate indication of value?
  • How do you tell if a company is under-valued or over-valued?
  • Why would one company command a higher or lower premium than its direct competitor?
  • What is the importance between enterprise value and equity value?
  • Why do we include minority interest and exclude capital leases?
  • What is the relevance of capital structure and leverage on a companys value?
  • Why and how is corporate finance so critical to managing a firm's profitability?
  • What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
  • Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
  • What is EBITDA and why is it so important?
  • Utilizing the correct numerator for multiples analysis
  • Calculating implied value based on multiples analysis
  • What is a leveraged buyout and what are the main motives for LBOs?
Case Study Discussion
  • Analysis of "football field" and reference ranges
  • Detailed discussion of the major valuation methodologies, their nuances and application in the real-world
  • Analyzing, comparing and contrasting trading comps, deal comps and premiums paid
  • Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
  • Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
  • Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)
  • How do you approach valuing a company with completely disparate businesses?
Hands-On Exercise
  • Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive
Prerequisites
  • Accounting & Financial Statements Integration
  • How to Analyze a 10K
  • Finance 101: Introduction to Finance
Video Length / Estimated Total Course Time

2 hours / 2.5 hours

Build a basic, quick and dirty, back-of-the-envelope trading comps analysis (analysis of selected publicly traded companies). This course will allow you to quickly construct a relative valuation analysis and serves as a critical basis for our Complex Trading Comps Analysis course.

  • Input historical results and analyst projections for comparable companies (public traded competitors)
  • Calculate current standalone market valuation multiples
Prerequisites
  • Accounting & Financial Statements Integration
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
Video Length / Estimated Total Course Time

1 hour / 1.5 hours

Relative Valuation Basics is an extracted section from Advanced Financial & Valuation Modeling - Enhancements course module. In particular, we construct the reference range and football field analysis to complete the valuation picture. We recommend taking the following courses in order to gain the holistic relative valuation view:

  • Quick & Dirty Trading Comps Analysis
  • Relative Valuation Basics
Reference Range & Football Field
  • Build reference range that quantifies fundamental and valuation methodologies
  • Summarize valuation modeling techniques including: quick & dirty trading comps, reference range analysis
  • Crystallize and appreciate the capital structure and the relationship between total enterprise value, equity value and price per share
  • Utilize best practices to reduce average construction time from 2 hours to 30 seconds
  • Update dynamic football field to graphically summarize valuation metrics
  • Step-by-step 25 page graphic instruction on how to create football field from scratch
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Quick & Dirty Trading Comps Analysis
  • Advanced Financial Modeling - Core Model
  • Extreme efficiency in Excel
Video Length / Estimated Total Course Time

0.5 hour / 1 hour

Build a detailed, thorough trading comps analysis (analysis of selected publicly traded companies) and learn how to properly construct a relative valuation analysis the correct way as well as how to normalize financials for extraordinary items, non-recurring and restructuring charges. This course itself isn’t terribly complex or difficult, but is very tedious, time consuming and at times frustrating as it requires a great deal of patience, attention to detail and reading comprehension. Hence, the first four letters of the title “analyst” ring true - perfection is required to get the right numbers.

Trading Comps Overview and Instruction
  • Learn the steps required to construct a trading comps analyses and how to filter straight through to the relevant information
  • Best practices on inputting and checking data, "Do's and Don'ts" tips, specific Income Statement and Balance Sheet reminders
  • Calculate LTM (last twelve months) and handling projections for comparability
  • Weighted average cost of capital analysis
Complex Comps Adjustments
  • Our comps module covers just about 98% of ALL adjustments one would possibly encounter!! Learn:
    • When and when not to adjust for asset impairments and write-downs
    • How to adjust for zero-coupon convertible securities that are simultaneously in-the-money and out-of-the-money
    • The effects of a LIFO / FIFO change in accounting recognition
    • How to adjust for changes in accounting principle and discontinued operations
    • The difference between below-the-line and above-the-line adjustments and evaluate when an item affects both, one or the other or neither
    • How to properly account for difference fiscal year ends
    • Proper treatment of capital leases
    • When to use reported GAAP Income Statement figures and when to use Pro Forma figures
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Company Profiles
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Quick & Dirty Trading Comps Analysis
  • Efficiency in Excel
Video Length / Estimated Total Course Time

4.5 hours / 6.5 hours

Build a deal comps analysis (analysis of selected acquisitions), similar to trading comps analysis, but from an acquisition context using historical transaction data instead of current market valuation data. This course will allow you to properly construct a deal comps analysis the correct way, uncovering some of the nuances related to calculating transaction value and purchase price. This course is not a complex course and in fact, is a relative breeze compared with our Complex Trading Comps course, but builds upon the concepts in the latter course.

Deal Comps Instruction
  • Learn the steps required to construct a deal comps analyses and how to filter straight through to the relevant information
  • Plow through the myriad of deal information such as 8K filings, 10K filings, press releases and industry databases
  • Calculate transaction value (purchase price), premiums and multiples in past deals
  • Uncover subtle nuances of determining correct enterprise value and avoid valuation mistakes
Prerequisites
  • Accounting & Financial Statements Integration
  • Company Profiles
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Quick & Dirty Trading Comps Analysis
  • Complex Trading Comps Analysis
  • Efficiency in Excel
Video Length / Estimated Total Course Time

1.5 hours / 2 hours

Package 5: Merger Modeling Topics

The goals of this course include: (i) understand the major steps and timelines of M&A; (ii) learn how to structure an M&A deal; (iii) explore common deal structures and determine optimal deal structures such as cash vs. stock consideration, stock vs. asset deals; and (iv) accretion / dilution and breakeven analysis. This course provides the fundamental knowledge required to understand, analyze and structure mergers & acquisitions. To hone the concepts learned in this module, be sure to follow-up with our hands-on, Excel-based Merger Modeling Basics course.

Mergers & Acquisitions Overview
  • Motivations for mergers and acquisitions
  • M&A sale process and timetable
  • Review of strategic planning & preparation of required materials
  • Examination of the types of potential buyers
  • Description of the due diligence process
  • Overview of negotiation & closing processes
  • Overview of representations and warranties
M&A Deal Structuring
  • Review of various deal considerations and deal structuring options (cash vs. stock)
  • Common structural issues in a transaction (stock vs. asset, 338(h)(10) elections)
  • Buyer and seller preferences for various deal structures and rationale
  • Tax implications of transactions based on deal structure and FASB 142 goodwill amortization
  • Brief discussion of upfront vs. deferred payments, employee retention and bonus pools
Accretion Dilution Analysis
  • Merger consequence analysis including accretion / dilution and financial implications of a deal
  • Discussion of key components with financial impact on transactions
  • Detailed explanation and analysis of line-by-line construction of accretion / dilution model
  • Analysis of breakeven PE for both 100% stock and 100% cash considerations
  • Contribution analysis and its relevant in the analytical process
Prerequisites
  • Accounting & Financial Statements Integration
  • Company Profiles
  • Corporate Valuation Methodologies
Video Length / Estimated Total Course Time

2 hours / 2.5 hours

This merger modeling course builds on top of our M&A Deal Structuring course in which you will build an accretion / dilution merger consequences model. This foundational merger modeling course will allow you to quickly understand the fundamental concepts of analyzing merger implications. To maximize your learning in this module, you need to absolutely understand the concepts in our M&A Deal Structuring course! This course serves as the backdrop to our Basic and Advanced Merger as well as our Super-advanced, Complex merger modeling course.

Accretion Dilution Modeling
  • Build dynamic merger consequence analysis (accretion / dilution) incorporating the following:
  • Synergies switch, cash vs. stock sensitivity
  • Amortization of goodwill switch (depending on purchase price allocation)
  • Common structural issues: Stock vs asset deals and 338 (h)(10) elections
  • Tax implications of transactions based on deal structure and FASB 142 goodwill amortization
  • Analysis of breakeven PE for both 100% stock and 100% cash considerations
  • Calculate pre-tax and after-tax synergies / cushion required to breakeven
Video Length / Estimated Total Course Time

0.6 hour / 0.75 hour

Further enhance core integrated financial model by building a detailed tax schedule incorporating NOLs (Net Operating Losses), Section 382 limitations on NOL usage and differences between book and tax depreciation. Dive deep into re-calculating depreciation for tax purposes based on accelerated depreciation - MACRS (Modified Accelerated Cost Recovery System) in the US. Incorporate and flow the accelerated tax depreciation into the larger tax schedule to account for differences in GAAP Pre-Tax Income and Taxable Income. Finish up with a quick Residual Income analysis and EVA (Economic Value Added) analysis, which complements our Enhancements Part I course.

Accretion Dilution Model
  • Build dynamic merger consequence analysis (accretion / dilution) incorporating the following:
  • Synergies switch, cash vs. stock sensitivity
  • Amortization of goodwill switch (depending on purchase price allocation)
  • Common structural issues: Stock vs asset deals and 338 (h)(10) elections
  • Tax implications of transactions based on deal structure and FASB 142 goodwill amortization
  • Analysis of breakeven PE for both 100% stock and 100% cash considerations
  • Calculate pre-tax and after-tax synergies / cushion required to breakeven
Ability to Pay Analysis
  • Construct an "Ability to Pay" Analysis, a reverse Accretion / Dilution analysis
  • Calculate maximum equity value and enterprise value based on cost of debt
  • Sensitize analysis based on interest rates and pre-tax synergy assumptions
Simple Merger Model
  • Construct a merger model, simple combination of Income Statement for target and acquiror
  • Project simple stand-alone Income Statement for both target and acquiror
  • Analyze selected balance sheet figures and ratios and multiples
  • Estimate target valuation and deal structure
  • Calculate selected Pro Forma balance sheet items
  • Combine target and acquiror's Income Statement and estimated synergies
  • Calculate cash flow for debt repayments to estimate debt repayments and cash balances
  • Compute interest expense and interest income based on paydowns
  • Calculate accretion / dilution and credit ratios
Prerequisites
  • Accounting & Financial Statements Integration
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
  • M&A Deal Structuring
  • Efficiency in Excel
Video Length / Estimated Total Course Time

1.5 hours / 2.5 hours

Our Intermediate/Advanced Merger Modeling course significantly builds upon our Merger Modeling Basics course. We go beyond the simple concepts of accretion /dilution and build additional precision into estimating the correct, pro forma combined earnings. First, enhance the Sources & Uses of Funds to allow for additional clarity in deal structure. Then, dive right into the fine details of the complex FASB 141/142 and IFRS 3 purchase price allocation rules and fair market value tangible assets step-up intertwined with intangibles asset allocation. We tackle and quantify the resulting nuances in deferred tax liabilities and better quantify our synergies estimates. Participants should have mastered the merger concepts and financial modeling techniques covered in our M&A Deal Structuring and Merger Modeling Basics course.

Construct a merger model, simple combination of Income Statement for target and acquiror
  • Project simple stand-alone Income Statement for both target and acquiror
  • Analyze selected balance sheet figures and ratios and multiples
  • Estimate target valuation and deal structure
Build an expanded Sources and Uses of Funds analysis that controls the merger model
  • Utilize cash from the acquiror to fund the merger, balanced with minimum cash balances
  • Dynamically handle different percent cash and stock deal structures
  • Incorporate target net debt refinanced / assumed
  • Calculate and incorporate proper treatment of debt financing fees and transaction costs
Merge target and acquiror income statements and calculate starting balance sheet items
  • Calculate selected Pro Forma balance sheet items (full B.S. not projected)
  • Combine target and acquiror's Income Statement
  • Estimate various types of synergies - revenue, COGS and SG&A synergies
Estimate condensed Cash Flow Statement and simplified Debt Sweep
  • Calculate cash flow for debt repayments to estimate debt repayments and cash balances
  • Compute interest expense and interest income based on paydowns
  • Calculate accretion / dilution and credit ratios
Calculation of Purchase Price Allocation (FASB 141/142 and IFRS 3)
  • Allocate purchase price among tangible book value (existing assets at cost), step-up in basis to FMV, tax deductible and non-tax deductible identifiable intangibles and goodwill
  • Proper accounting treatment of transaction costs, tender costs and accrued interest of any refinanced debt and debt transaction financing fees
  • Account for differences in GAAP book deductibility and tax deductibility of intangible assets
  • Build in the ability to treat acquisitions as an asset sale for tax treatment
Prerequisites
  • Basic Financial Modeling
  • M&A Deal Structuring
  • Merger Modeling Basics
  • Efficiency in Excel
Video Length / Estimated Total Course Time

2.5 hours / 4 hours

Package 6: Leveraged Buyout Modeling

This course provides a basic overview and introduction to leveraged buyouts, including discussion of rationale for ‘going private’, ideal LBO candidate, drivers of value. The following items are discussed, including description, importance, implications and general thoughts on: valuation, debt capacity, scenario analysis, sources & uses of funds, rollover equity, pro forma capital structure, purchase vs. recap accounting, goodwill treatment and other issues. You will gain some basic & fundamental knowledge required to understand LBO transactions. The purpose of this course is to introduce some of the terminology and concepts required for our Quick & Dirty LBO Modeling and Complex LBO Modeling courses.

  • Valuation Summary
  • Maximum Debt Capacity
  • Refinancing Scenarios
  • Expenses - Definitions and Accounting Treatment
  • Sources and Uses of Funds
  • Equity Sources and Rollover Equity
  • Interest Rate Scenarios
  • Pro Forma Capital Structure
  • Purchase Accounting vs. Recapitalization Accounting
  • Goodwill Calculation / Treatment and Amortization (FASB 141/142)
  • Pro Forma Opening Balance Sheet & Adjustments
  • Pro Forma Shareholder's Equity Treatment
  • Cash Flow Statement and Debt Sweep Adjustments and Expansion
Prerequisites
  • Accounting & Financial Statements Integration
  • Finance 101: Introduction to Finance
  • Corporate Valuation Methodologies
Video Length / Estimated Total Course Time

1 hour / 1 hour

In the normal course of running a company, the CFO must balance capital requirements with capital sources of funds. Changes to the capital structure are not insignificant as each component of capital has an opportunity cost. In this course, we introduce the impact of changes in capital structure and the resulting impact on a company’s decision to borrow vs. raise equity. We quantify the thought process and the logic that dictates one or the other by examining both extremes of capital structure changes: from a simple small share repurchase to the opposite spectrum, the leveraged buyout. This class examines and incorporates all the major inputs and value drivers of capital structure changes by building a short, quick and dirty LBO analysis, providing an excellent condensed overview and introduction to LBO modeling. As LBOs are risky and complex financial transactions, sometimes, building a full-out, complex LBO model is not necessary or required if one just wants to quickly gauge the feasibility of an LBO.

Learning Objectives
  • Discussion on leveraged buyouts, including overview, rationale, ideal candidate and drivers of value
  • Construct and sensitize a basic, quick and dirty, leveraged buyout model
  • Incorporate fundamental drivers including Sources & Uses, Pro Forma, post-LBO projections, available cash flow, debt sweep, credit ratios and IRR
Learning Goals
  • Drivers of value from a financial point of view and changes in capital structure
    • Comparison to share repurchases and the lack of value creation
    • Counter argument of cost of capital, funding costs and opportunity costs arbitrage
    • Counter-counter argument of weighted average cost of capital changes
    • Final assessment of source of returns of LBOs
    • We first introduce the obvious rationales, then prove why that is wrong, then disproof the proof and disprove that and disprove that and finally agree on how corporate finance and the capital markets extract value from capital structure arbitrage
    • In short, participants might be thoroughly confused at first, but will finally understand every aspect of the value proposition by the time we are done!
  • Discussion on LBOs, including: overview of LBO's, rationale for going private, ideal LBO candidate
  • Create a quick and dirty, condensed LBO model from scratch
  • Build a summary Sources and Uses of Funds analysis that dictates LBO value
  • Construct a Pro Forma, post-LBO Income Statement projection model incorporating LBO changes
  • Calculate cash flow available to firm through simplified debt sweep pay off high debt volumes
  • Create condensed IRR (internal rate of return) analysis to evaluate financial sponsor returns
    • Comparison of IRR to multiple of capital as a return metric and benchmark
    • Identify true source of returns, from building of equity to time value of money
    • Compare and contrast returns trends based on exit multiple contraction or expansion
    • Discussion on why highly levered transactions must exit within 3 to 5 years
    • Analyze and partially quantify the trend towards dividends to financial sponsor as opposed to debt paydown
  • Analyze basic credit and leverage statistics and equity sources that drive the LBO model
Prerequisites
  • Accounting & Financial Statements Integration
  • Corporate Valuation Methodologies
  • Company Overview
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
  • M&A Deal Structuring
  • Merger Modeling Basics
  • LBO Overview
  • Efficiency in Excel
Video Length / Estimated Total Course Time

1 hour / 1.5 hours

Further enhance core integrated financial model by building a detailed tax schedule incorporating NOLs (Net Operating Losses), Section 382 limitations on NOL usage and differences between book and tax depreciation. Dive deep into re-calculating depreciation for tax purposes based on accelerated depreciation - MACRS (Modified Accelerated Cost Recovery System) in the US. Incorporate and flow the accelerated tax depreciation into the larger tax schedule to account for differences in GAAP Pre-Tax Income and Taxable Income. Finish up with a quick Residual Income analysis and EVA (Economic Value Added) analysis, which complements our Enhancements Part I course.

  • Build an expanded Sources and Uses of Funds analysis that dictates LBO value
  • Sources of Funds: inclusion of rollover equity, detailed debt structure & maximizing debt capacity
  • Uses of Funds: ability to toggle refinancing of existing debt, excess cash usage, proper treatment of debt financing fees, tender costs and transaction costs
  • Construct a Pro Forma, post-LBO Income Statement projection model incorporating LBO changes
  • Calculate new, Pro Forma interest expense and amortization of debt financing fees
  • Calculate cash flow available to firm through expanded debt sweep pay off high debt volumes
  • Constructed simulated Cash Flow Statement, including CFO, CFI and CFF
  • Expanded Debt Sweep schedule to flow through various debt items
  • Incorporate Term Loan mandatory amortization and dynamic pre-payment
  • Integrate and sweep through additional new and existing debt tranches
  • Create condensed IRR (internal rate of return) analysis to evaluate financial sponsor returns
  • Comparison of IRR to multiple of capital as a return metric and benchmark
  • Identify true source of returns, from building of equity to time value of money
  • Compare and contrast returns trends based on exit multiple contraction or expansion
  • Discussion on why highly levered transactions must exit within 3 to 5 years
  • Analyze and partially quantify the trend towards dividends to financial sponsor as opposed to debt paydown
  • Triangulate IRR when there are unequal cash flow returns to equity sponsor primarily through dividends
  • Analyze basic credit and leverage statistics and equity sources that drive the LBO model
Prerequisites
  • Basic Financial Modeling
  • Advanced Financial Modeling - Core Model
  • M&A Deal Structuring
  • Merger Modeling Basics
  • LBO Overview
  • Quick & Dirty LBO Modeling
  • Efficiency in Excel
Video Length / Estimated Total Course Time

2.5 hours / 4 hours

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