Certified Financial Management Professional – Advanced Financial Analysis, Strategic Planning, Capital Management & Cash Flow Analysis
FACE 2 FACE
ON SITE TRAINING
This program focuses on the key concepts and techniques of strategic financial management, which has as its key aim the creation of corporate value over the long run. Financial management relies crucially on two principal activities which are extensively examined in the program: one is the investment decision, that is, putting productive assets on the balance sheet; and two, the financing decision, which is concerned with optimal capital structuring on the liability side, that is, the use of debt in relation to equity. This course is crucial for all financial managers who require a rigorous understanding of how corporate value creation is linked to the timing and riskiness of cash flows and the cost of capital. The participant will gain practical insight into the management of working capital, the performance of financial analysis, including an examination of the relevant metrics and value drivers in managing the business, as well as consideration of the sources of long-term financing to the firm. Attention is also given to financial distress and corporate restructuring issues as well as the development of strategic business plans.
An understanding of how the IFRS financial statements are put together and their limitations in business and investment analysis.
A systematic approach of analyzing financial statements and ratio analysis for assessing business and investment opportunities.
Effective use of investment appraisal screening and evaluation tools (payback/ DCF/ IRR/ MIRR).
Broader understanding of current and traditional sources of long-term financing instruments.
Greater insights into using effective advocacy documents to pitch your investment and business conclusions.
International Academy of Business and Financial Management
The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional assn. with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.
Course Background and Overview
Delegate introductions and course objectives High level overview of course content Corporate Financial Information Value of the annual report Understanding the mandatory and discretionary sections of the annual report Information available in the annual report Risk assessment documents in annual report Case Study: Discussion and review of annual report management discussion and analysis document Core Accounting Concepts Clarifying the distinction between financial accounting and management accounting Frameworks and how financial accounting works Useful management accounting information to obtain to analyse if available Balance sheet or statement of financial position Income statement or statement of comprehensive income Cash flow statement Different accounting standards and their impact on analysts IFRS and IFRS for SME Working Capital and Liquidity Issues Review of working capital ratios Components of working capital How working capital ratios are determined Interpreting the working capital ratios and what action should be taken Assessing the working capital cycle What it means; comparison to peer groups; how to draw conclusions Extensive examination of working capital and liquidity issues Extracting potential for improving performance and results Deeper look into the cash flow statements and how to use them Case Study: Exercise to determine working capital cycle days with in-depth discussion of how to interpret the outcome and identify opportunities to improve corporate performance; mini case studies to illustrate the direct and indirect cash flow presentation formats Looking back at corporate scandals Overview of significant scandals WorldCom Bernie Madoff Enron
Application of Advanced Ratio Analysis
Detailed examination of financial ratios linking financial statements and practical realities of the business Profitability and return ratios Short term solvency and liquidity ratios Long term solvency and stability ratios Information through comparison Structured approach on gearing (leverage) distinguishing between financial and operational gearing Establishing the link between performance and risk taking Case Study: Complex team-based case study requiring in depth team discussion and analysis that challenges the understanding of expectations of financial ratios where each team is tasked with objective to match a set of ratios with the ten companies. This has been an excellent tool used in many training programs for the delegates to gain a more practical understanding of ratio analysis. Using the DuPont Framework for Assessing Performance Detailed examination of financial ratios linking financial statements and practical realities of the business Discussion of the three levers in the DuPont analysis - Earnings and efficiency in earnings - Ability to turn assets into profit - Financial leverage Finding the red flags Preparing board / senior executive briefings on company versus peer performance Long Run (Strategic) Investment Decisions Importance of long-term investment decisions Magnitude and frequency How do we know if we are creating value Management motivation / incentives and agency risks Investment Analysis Core Concepts and Principles Developing a conceptual distinction between value creation and destruction Techniques and methods of screening tools and methodologies used to evaluate investment alternatives of both cash and profit based approaches Overview of the differences of cash and profit based approaches assessing each of their relative strengths and weaknesses Process of reconciling cash to EBITDA
Investment Analysis Core Concepts and Principles (continued)
Techniques and methods of screening tools and methodologies used to evaluate investment alternatives of both cash and profit based approaches Capital investment appraisal relevant costs and discounted cash flow techniques Tackling multicurrency investment appraisals How to effectively use expected values in NPV calculations The use of sensitivity analysis for reviewing and assessing the strength and comfort of cash flow models Case Study: Mini-short exercises to recap and reinforce the core principles of cash flow analysis and discounted cash flow exercises to assess project viability. Determining the Cost of Capital Strong emphasis on understanding a company cost of capital and relationship to cash flow risks. Demystifying risk betas and the capital asset pricing model (CAPM) The building blocks of systematic and unsystematic risk Determining financial risk The underpinnings of how to assess business risk Developing a weighted average cost of capital (WACC) for a business Modigliani and Miller’s capital structure theory Impact of using debt in the capital mix and assumptions about taxation Impact of dividend policy and why it does or does not matter in corporate valuation considering Modigliani and Miller and current thinking Case Study: A number of short exercises to determine the cost of capital using industry benchmarks. Mini case study using published beta list to perform a de-lever and re-lever exercise in connection with an acquisition (or investment project) outside one industry. Tackling Financial Risk with Adjusted Present Value How to independently assess business and financial risk Effective use of debt to impact project viability Advanced Appraisal Techniques with Real Options Strategic aspects relating to corporate expansion Core concepts and principles of using real options to assess project viability Case Study: Application on how to apply real options to assess viability to enter a new market.
Methodologies and approaches Earnings, assets and cash-based methods How to use dividend valuation, price / earnings and EBITA multiples Options based valuations putting numbers to more complex valuation exercises Analyzing and Assessing Different Sources of Finance Evaluating and determining corporate long-term funding strategies and sourcing appropriate finance Reviewing the latest as well as traditional financing options available Using quasi debt structures such as convertible loans with a discussion of the pros and cons as to the reasons when this option is or is not appropriate Equity finance with venture capital (VC) funding Specific and general borrowing costs Crowd funding concepts and principles Case Study: Assessment of funding alternatives for a number of different scenarios followed by in-depth group discussion and analysis. Capital Raising with Islamic Finance How Islamic finance is evolving to more mainstream finance and expanding its international reach and relevance Advantages of raising capital with Islamic finance
Long Term Liability Structuring
Getting the structure right Managing asset / liability relationship Risk identification Interest rate Currency Advanced financial management tools Managing interest rates - Transformation of long-term interest rate structure - Mechanism and how to use interest rate swaps Tackling currency risk - Cross currency borrowings - Currency swaps Negotiating Financial Difficulties The challenges of corporate integration and restructuring - the do and donts Methodology of a financial restructuring Approach to assess if a reconstruction is viable The underpinnings of a reconstruction plan Case Study: Comprehensive case study on the assessment process of a corporate restructuring of a multi-divisional company with a significant amount of debt and the plan preparation of possible alternatives for a viable resolution to all stakeholders including numerical calculations. Includes group discussion of how to propose and negotiate a win-win restructuring plan. Effective Advocacy Documents Preparing financial reports and executive briefings on investment appraisal analysis Structure and content of executive / internal reports on financial analysis The use of ratios / key financial data to convey pros and cons of investment alternatives Importance of effective advocacy documents in raising finance Effective use of business plans Impactful information memoranda Bond and debt memoranda Case Study: Class exercise and group discussion on how to make written communication effective and impactful for the best chance of achieving the objective.
Who Should Attend?
This highly practical and interactive course has been specifically designed for
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +971 4 447 5711 or email@example.com.
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.
CFMP Certified Financial Management Professional
CFMP Course was significantly worthy and enjoyable for the candidates , it’ including several types of study methodologies especially case study , group work , Financial statement analysis, Advance Ratios analysis and cash flow. The course is really add value for whom seeking to advance their financial management skills. Thanks LEORON
Planning and Budgeting Analyst , MBA
CFMP Certified Financial Management Professional
In LEORON the story is different , you feel like in a real business life.