Turbulent markets have made it clear that standard analysis is sometimes inadequate to truly understanding risk. Unlock the power of advanced financial theory by learning practical implementation in Excel. This course goes through advanced concepts in finance, while teaching the necessary technical skill to implement them immediately.

Learning valuation and advanced modeling is best done with a combination of theory, demonstration and hands-on practice; each section below is designed in such a way. Almost all exercises are Excel and/or VBA based and contribute to understanding a fully functioning, dynamic model. The following models will be reviewed and included with the course:

  • Basic Corporate Finance Model
  • Advanced Corporate Finance Model
  • Project Finance Model
  • Data Stratification Tool
Day One - Mergers and Acquisitions
  • Overview of Types of Mergers and Acquisitions
  • Review of the Basic Corporate Model Exercise: Determine Firm Value Using the Basic Corporate Model
  • Overview of Determining Merger Value Exercise: Basic Value Determination Using Two Separate Models
  • Implementing Merger Modeling on a Professional Level Exercise: Setup and Use a Control Workbook for Merger Modeling
  • Understanding Synergy Exercise: Determine Synergy Valuation for a Merger Valuing Control  –   Exercise: Case Study Merger Modeling
  • Debt Capacity Increase from Mergers
  • Diversification Benefits Exercise: A Look at Diversification Effects on Valuation
  • Tax Benefits Exercise: A Look at Tax Benefits from a Merger
Day Two - Mergers Continued, Leveraged Buyouts, and Special Topics in Corporate Finance Modeling
  • Stock Price Effects Due to a Merger Exercise: A Historical Look at Stock Price Change Due to Merger
  • Differences in Accounting for Mergers and Acquisitions
  • Pooling versus Purchase
  • Leveraged Buyout Modeling Exercise: A Leveraged Buyout Example
  • Special Topics in Corporate Financial Modeling
  • Parent Companies and Subsidiary Modeling Exercise: Fungible Cash Flow: Upstream and Downstream Dividends
  • Financial Services Firms
  • Issues with DCF Valuation
  • Asset Based Valuation
  • Special Ratios for Insurance Companies
  • Uses of Regression in Finance for Growth Analysis
  • Using Data Analysis Tools, Standard Functions, Array Functions, and Forecasting and Trending Techniques
Day Three - Credit Risk, Simulation, and Options
  • Credit Risk Modeling
  • Advanced Methods for Analyzing Loss
  • Determining Creditor Payment Status Exercise: Payment Status Determination
  • Using Payment Status to Determine Loss Rates Exercise: Creating Loss Estimates
  • Methods for Projecting Loss Rates Exercise: Trending and Projection for Loss
  • Simulation Simplified
  • Monte Carlo Simulation in Excel
  • Seed Variables, Random Numbers, Normalization, Simulation Framework
  • Option Models in Excel
  • Black Scholes
  • Binomial Trees
  • Automating with Excel
  • Common Signs of Fraud in Models:
    • Income Statement
      • Revenue Manipulation
      • Expense Manipulation
    •  Balance Sheet
      • Asset Manipulation
      • Equity Manipulation
  • Advanced Charts
  • Creating Dynamic Charts, Pivot Charts, SERIES Function, Form Controls Exercise: Advanced Charting Techniques