Course Description

INTRODUCTION

Understanding and measuring the true value created by the business is becoming increasingly important for managers and owners. This training course provides participants with a good understanding of how to measure business success and promote value creation within the organisation.

Objectives

Participants attending this training course will:

Have the ability to measure the business success and promote value creation 

Understand the important factors to consider when making investment decisions 

Understand how to incorporate risk and uncertainty into investment decisions? 

Understand how reliable are the available data, and how is this uncertainty likely to affect the range of results?

Learn to evaluate the value created through merger and acquisitions or other business activities?

Understand assessment of value creation strategies.

The benefit of this course:

Choosing the most appropriate tools and using Excel to develop long-term financial models and budgets

How to analyse and interpret the financial statements: Balance Sheet; Income Statement; Statement of Cash Flows, in order to make more informed financial decisions

To develop and manage the financial aspects of their role more effectively, enhance their performance

Broaden their role in the company, and appreciate how their decision-making may impact on their own department or business unit

How value creation is measured using various technique

The importance of financial statements as a tool to assist managers in support of more informed and therefore better decision-making.

The relationship between long and short-term planning, and ability to develop and prepare financial models and operating budgets and the use of Excel models to build financial growth planning models and prepare traditional and activity-based budget models

Course Outline

DAY 1

The Financial Economic Decision-Making

The practice of financial/economic analysis

The value-creating company

Corporate value and shareholder value

A dynamic perspective of business

The agency problem and corporate governance

Implications of agency problems for organisations

DAY 2

Assessment of Business Performance

The nature of financial statements

The context of financial analysis and decision-making

Ratio analysis and business performance

Management’s point of view

Owners’ point of view

Lenders’ point of view

Ratios as a system – pyramids of ratios

Integration of financial performance analysis

Economic value added (EVA)

Predicting financial distress

DAY 3

Analysis of Investment Decisions

Applying time-adjusted measures

Net present value (NPV) and internal rate of return (IRR)

Strategic perspective

Refinements of investment analysis

Equivalent annual cost (EAC)

Modified internal rate of return (MIRR)

Sensitivity analysis, scenario analysis, simulation, and NPV break-even

DAY 4

Projection of Financial Requirements

Interrelationship of financial projections

Operating budgets

Standard costing and variance analysis

Cash forecasts and cash budgets

Sensitivity analysis

Dynamics and growth of the business system

Operating leverage

Financial growth plans

Financial modelling

DAY 5

New Integrated Performance Measurement Systems

Beyond Budgeting: Integrating Financial and Pre-financial Information

The Drivers of Value Creation

The Balanced Scorecard

Strategy Maps

Integrated Reporting