Value Creation
Finance, Accounting & Cybersecurity
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