Workshop on Mastering financial modeling

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Workshop on Mastering financial modeling

  1. 1. MASTERING FINANCIAL MMMASTERIN GMODELING ADVANCED LEVEL 4 DAY WORKSHOP In association with
  2. 2. MASTERING FINANCIAL MODELING ADVANCED LEVEL 4th - 7th October, 2010 : Mumbai | 6th - 9th December, 2010 : Delhi, Ahmedabad 13th -16th December, 2010 : Bangalore, Mumbai Program Fee: INR 24,000 /- + 10.3% ST Mastering Financial Modeling (MFM©) is a comprehensive financial modeling workshop which covers the practical requirement that a finance professional is expected to do in areas related to Financial Modeling. Excel sheet is a predominant tool used in Modeling and the program shall cover its relevant usage in detail. The workshop has 32 classroom contact hours spanning four days from 8 am to 6 pm. Objective of this program is to build fundamental concepts on financial modeling and provide them techniques to build financial model needed by their organisation. ABOUT THE PROGRAM MFM© starts with a 2 day basic program on financial modeling which explains about all the excel based financial modeling required by finance professional working in any sector. The latter 2 days goes in depth into the derivative solutions and its analysis and financial engineering models including the concepts of financial mathematics. Day 1-2: FINANCIAL MODELING WITH EXCEL (2 Days) It is a generic program catering to the needs of all corporate professionals working in any sector. This program will take an individual from basic to an intermediate level. Pre Requisite: None Day 3-4: MODELING AND ANALYSING DERIVATIVES USING EXCEL (2 Days) This is a niche financial modeling program which caters to only those working in derivatives and financial engineering. Pre-Requisite: It is expected participants should have an understanding of excel based financial modeling and working knowledge of derivatives. Based on the need, you can enroll for entire 4 day program (MFM©) or for any of the two day program – Day 1-2: FINANCIAL MODELING WITH EXCEL (2 Days) or Day 3-4: MODELING AND ANALYSING DERIVATIVES USING EXCEL (2 Days) HOW THE WORKSHOP WAS SHAPED Some of the research and data points we have used in shaping the agenda include: 1. Talking to Senior business and Finance management group, Financial consultants and analysts in the private and public sectors and seeking their views and advice on what are the critical issues in Financial Modeling and where they are investing budget. 2. Seeking the views of thought leaders, industry analysts and leading consultants to mould the agenda. 3. OptiRisk is in a unique position as a major part of our business is also training - which includes large portfolio of public and closed in-house courses – from this we track which courses are generating most participation and importantly again, where organisations are investing budget. Training is an excellent barometer to market trends. We believe that this is the most focused of any Financial Modeling workshop in India.
  3. 3. FINANCIAL MODELING WITH EXCEL 2 DAY WORKSHOP
  4. 4. FINANCIAL MODELING WITH EXCEL 4th & 5th October, 2010 : Mumbai 6th & 7th December, 2010 : Delhi, Ahmedabad 13th & 14th December, 2010 : Bangalore, Mumbai Program Fee: INR 13,000 /- + 10.3% ST PROGRAM OBJECTIVE MS Excel ® is today unarguably the most commonly used spreadsheet utility globally to do finance. In spite of this, according to various surveys on Excel usage, a rather miniscule percentage of Excel Users use it to its full potential. The focus of the course is to help the participants learn the tools and capabilities of this spreadsheet application to perform from the simplest to the most complicated and elaborate financial analysis. Modelling for Corporate Finance Transaction  Case Outline and the process participants will go through in solving the case and structuring an LBO/MBO transaction Acquirer input Acquirer Acquirer historical output: DCF valuation numbers and Income output projected statement, numbers/ balance sheet assumptions. and cash flow How the Sources of LBO/MBO Funds: would be Financial funded. How Sponsors much debt needs to be Management raised Different Tiers of debt Structuring the Motivations & Deal Economics of deal for Evaluating Debt/Hybrid/E Different quity Investors Options
  5. 5. FINANCIAL MODELING WITH EXCEL The good thing about an over-engineered software like Excel is that it very well equiped to perform the most sophisticated and detailed financial analysis. The downside to this is that financial analysis workbooks are becoming increasingly bulky and unstructured. Many a times, they develop into unweildy, clumsy and difficult to manage models, with the user having no clue as to what’s going in the spreadsheet and if the results are accurate in the first place. Therefore, structuring good financial models is as much an art as a science. The important aspects this workshop focuses on is to apply the tools effectively while constructing financial models, caring for scalability, making them flexibile, structuring in such a way that auditing the model results is not cumbersome. These essential attributes make financial models accurate, flexible and user-friendly. The workshop would use a ‘learning by doing’ approach, because that’s how the science and art of financial modeling is learnt. Results: We expect that the participants attending the course will be able to learn significant financial modeling capabilities using Excel that would be pertinent for corporate finance, financial analysis, risk management, transaction structuring like modeling for M&A, etc. The level of the course is Intermediate to advanced. KEY BENEFITS - Master the use of Excel’s financial modelling tools - Incorporate elements such as risk, sensitivity, and capabilities optimisation and forecasting into financial models - How to design a model to suit your purpose - Produce meaningful management reports and charts - Understand the different types of financial models for communication and when each should be applied - How to identify and control key sensitivities through - Construct financial models making use of a broad advanced spreadsheet simulation range of Excel methods and techniques - How to design a model to maximise flexibility and - Accurate forecasting corporate cash flows for project reliability finance deals and structures - Practical tips for checking and debugging the mode
  6. 6. FINANCIAL MODELING WITH EXCEL PROGRAM FACULTY Our faculty is an experienced Investment Banker and a guest faculty in finance in IIMs, who specializes in Fixed Income, Foreign Exchange and Credit Derivative products. He has conducted training programs for banks and corporates in India, Singapore, Hong Kong, Middle East, and South Africa on topics such as Credit Derivatives, Fx Derivatives, FI Derivatives, ALM, M&A, Financial Modeling for LBOs, Debt Capital Markets, Basel II and Risk Management. WHO SHOULD ATTENTD  Corporate Finance Professionals  Quantitative analysts  Investment Bankers  Risk professionals  Treasury managers  Controllers  Data analysts and economists DAY ONE Creating the first financial statement model in Excel to  Data Analysis Toolpak begin with (with an exercise and hands on practical  Important Excel Functions and commands for session; focus on how to build a model right from the modeling scratch, linkages with excel spread sheets, assumptions,  Conditional Formating use of past financial statements for the projections and  Online collaboration building forecasted financial statements)  Auditing  Protecting the workbook Important issues for preparation and building of a financial  Sharing the workbook model  Data Validation  Handling external data Excel Functions and commands to supercharge worksheets  Sorting (most of the participants may be aware about the  Filters functions, yet just a quick revision and how these functions  Subtotals are used in financial modelling)  Pivot Tables  Different ways of summing and counting: SUMIF; SUMIFS; SUMPRODUCT; DSUM; DCOUNT;  Statistical Data Analysis: trend analysis, regression, DCOUNTA; COUNTBLANK; COUNTIF; DMAX; moving average DAVERAGE  Optimisation using  IF (This Is True, Do This, Else Do This)  Goal Seek  Lookup & reference: CHOOSE; OFFSET; INDEX;  Scenario Manager MATCH; HLOOKUP; VLOOKUP  Data Table: Row and Column input cell  Solver
  7. 7. FINANCIAL MODELING WITH EXCEL DAY ONE (Cont.)  Scenario Building  Switches  Forms  Scenario building optimistic, base case and pessimistic assumptions DAY TWO Topics in Finance  Modelling term structure of WaCC  DCF valuation  Principles of financial modelling—Accuracy, Flexibility  Relative valuation (PE, EBITDA multiple) & User-friendliness  Combining DCF and relative valuation models  Defining Model objective  Modelling for Leveraged Buy Out & Management Buy  Outlining model plan Out  Spread sheet maps  Sources of funds for acquisition  Flowchart and information flow  Modelling uses of funds  Layout and architecture of financial model  Modelling ESOPs and Earn-Outs  Setting up modules  Partial and full dilution due to ESOPs  Identifying inputs and variables  IRR calculation for financial sponsor on fully diluted  Defining deliverables and functionality basis  Cataloguing outputs  Purchase Accounting Model  Stress testing Models  Model for Stock-for-Stock Deal  Model Documentation  Model for Cash-for-Stock Deal  Financial Statement modelling  Modelling when M&A financed by issue of debt  Projection of Revenues, COGS, SG&A and other Income  Model illustrating Accounting for a partial Acquisition Statement and Balance Sheet items  Accretion Dilution Model  Select model drivers and assumptions  Deal Structure: Cash, Fixed-Value Stock Offer, Fixed-  How to create an interlinked model for Income Shares Stock Offer Statement and Balance Sheet  How circularity improves accuracy but also destabilizes the model  Building a fully integrated Cash Flow Statement  Modelling need for financing in future time  Analysing the output and cross-checking with surplus funds and necessary to finance  Models for Debt repayment with prepayment option  Modelling Amortizing & Accreting Loans  Modelling Pay In Kind (PIK) securities  Model for computing Beta  Modelling un-levering and re-levering of betas  Modelling term structure of Beta  Model for WaCC with various debt-equity choices
  8. 8. MODELING AND ANALYSING DERIVATIVES USING EXCEL 2 DAY WORKSHOP
  9. 9. MODELING AND ANALYSING DERIVATIVES USING EXCEL 6th & 7th October, 2010 : Mumbai 8th & 9th December, 2010 : Delhi, Ahmedabad 15th & 16th December, 2010 : Bangalore, Mumbai Program Fee: INR 13,000 /- + 10.3% ST PROGRAM OBJECTIVE A common misconception is that understanding derivatives requires knowing a lot of advanced math which is the privilege of only the geeks. That said, sometimes you probably wonder how do these large bunch of I-Bankers manage to provide derivative solutions to their clients because they don’t seem to have been rocket scientists in their previous avatar. There would have also been questions like how do you actually engineer those financial products? May be, you read something called Black Scholes, Ito’s Lemma, and so on but they didn’t quite answer those questions convincingly, much less, make sense in the context of the real world of finance. In the last two decades, derivatives have become all-pervading in financial markets with outstanding notionals in excess of US$ 600 trillion. If your profession has anything to do with finance, then there is a pretty high chance that you will have something to do with derivatives at some point or the other. This course tries to demystify and simplify derivatives using a tool like Excel. For a practioner, it may be difficult to relate the Black- Scholes equation but it would probably start to make sense once you start thinking like an accountant about all these greeks and put the differential equations in excel. In the workshop, we will start to think of each of these greeks in terms of money, which is what traders do. The program covers a comprehensive list of topics that derivative practioners need to understand for their day-to-day work. dSt  (rnumeraire  rasset ) * dt   * dWt St C 1 2 2  2C C  S  (rnum  rasset ) S  rnumC t 2 S 2 S V ( S , K , T , t ,  , rnum, rasset ,  )  e  rnum [ FN (d1 )  KN (d 2 )]
  10. 10. MODELING AND ANALYSING DERIVATIVES USING EXCEL PROGRAM FACULTY Our faculty is an experienced Investment Banker and a guest faculty in finance in IIMs, who specializes in Fixed Income, Foreign Exchange and Credit Derivative products. He has conducted training programs for banks and corporates in India, Singapore, Hong Kong, Middle East, and South Africa on topics such as Credit Derivatives, Fx Derivatives, FI Derivatives, ALM, M&A, Financial Modeling for LBOs, Debt Capital Markets, Basel II and Risk Management. WHO SHOULD ATTENTD  Capital Market Professionals  Quantitative analysts  Investment Bankers  Risk professionals  Treasury managers  Controllers  Economists KEY BENEFITS  Understand financial engineering specifically, how  Appreciate how derivatives are structured to suit derivative structures are engineered client requirements  Pricing and risk management of Equity, FX, Interest  Learn simulation techniques for pricing derivatives Rate and Credit Derivatives  Learn how to solve any stochastic partial deferential  Demystify and simplify the quantitative techniques in equation (including Black Scholes equation) using analysing derivatives using Excel spreadsheets  Be aware of derivatives as risk management tools  Understand Greeks (Delta, Gamma, Vega & Theta)  Learn how to manage a derivative portfolio and the monetary implications of each of them
  11. 11. MODELING AND ANALYSING DERIVATIVES USING EXCEL DAY ONE  Geometric Brownian Motion  multiple ways of deriving the Black–Scholes partial  Financial variables with deterministic Jump and differential equation stochastic jumps  the assumptions that go into the Black–Scholes  Taylor series equation  Our first differential equation  how to modify the equation for commodity and  Binomial Model currency options  Binomial model for an asset price random walk  delta hedging  Replication of price of a derivative product in general  no arbitrage is the cost of risk managing it  the basics of the binomial method for valuing options  Excel Exercise using a Partial Differential Equation  Discrete Hedging  risk neutrality  the effect of hedging at discrete times  Pricing exercises using Binomial model  hedging error  the real distribution of profit and loss  Simulating and Manipulating Stochastic Differential Equations  Pricing exercises  Using Ito’s lemma to manipulate stochastic differential equations Equity Derivative Products  Continuous-time stochastic differential equations as discrete time processes  Vanilla Options  Simple ways of generating random numbers in Excel  Call/Put Options  Correlated random walks  Contract specifications of Call/Put Options  Exercise: Pricing with Black Scholes Model and  Monte Carlo Simulation and Related Methods Monte Carlo Simulation in Excel  the relationship between option values and  Basic strategies containing vanilla options expectations  Call and put spread  how to do Monte Carlo simulations to calculate  Risk reversal derivative prices  Risk reversal flip  simulations in many dimensions using Cholesky  Straddle factorization  Strangle  Butterfly  The Black–Scholes Model  Seagull  the foundations of derivatives theory: delta hedging and no arbitrage
  12. 12. MODELING AND ANALYSING DERIVATIVES USING EXCEL DAY TWO Fx Derivatives and Interest Rate Derivatives Credit Derivatives  Credit Default Swap Pricing  Fx Forwards, Fx Swaps  Pricing First-to-default Basket  When to use an FX forward, Fx Swap  Copula Models for pricing credit derivatives: Gaussian  Pricing & Hedging Examples Copula  Fx Structuring Exercise in Excel: Corporate Client  Pricing CDO  Fx Structuring Exercise: Cross border acquisition Risk management of Derivatives  Interest Rate Swaps  Value at Risk  LIBOR Swaps  VAR as Downside Risk  MIBOR Swaps  VAR Parameters: Confidence Level, Horizon,  OIS Swaps Application: The Basel Rules  Basis Swaps  VAR Methods  Cross Currency Swaps  Standard CCS with principal exchange Counterparty Credit Risk for Derivative Transactions  PO Swaps  Counterparty-level exposure  CO Swaps  Credit Value Adjustment (CVA)  Interest Rate Options  CVA as the price of counterparty credit risk  Receiver and Payer Swaptions  Expected Exposure - Conditional on Default  Caps and Floors  Peak Exposure - Conditional on Default  Callable & Puttable Bonds  Wrong/Right-Way Risk  CO Swaps  Interest Rate Options  Receiver and Payer Swaptions  Caps and Floors  Callable & Puttable Bonds
  13. 13. OPTIRISK INDIA LEARNING SYSTEMS developing professionals, enriching organizations, Creating global executives Registration form Yes, please register me for : Fees Financial Modeling With Excel 4th & 5th Oct, 2010 6th & 7th Dec, 2010 13th & 14th Dec,10 Rs 13,000/- (2 Days) Mumbai Delhi Ahmedabad Bangalore Mumbai *(Service Tax Applicable) Modeling & Analysing Derivatives Using 6th & 7th Oct, 2010 8th & 9th Dec, 2010 15th & 16th Dec,10 Rs 13,000/- Excel (2 Days) Mumbai *(Service Tax Applicable) Delhi Ahmedabad Bangalore Mumbai Both (4 Days) 4th - 7th Oct, 2010 6th - 9th Dec, 2010 13th - 16th Dec,10 Rs 24,000/- (Certificate of Participation from Carisma Mumbai Delhi Ahmedabad Bangalore Mumbai *(Service Tax Applicable) Brunel University London) 1.Web 3.Telephone 5.Fill this and post www.optiriskindia.com +91 9717039970 OptiRisk Learning Systems (P) Ltd. 5 easy ways to register # 501, Block No - 10 2.Email 4.Register Online Zenith, Suncity, or to make an enquiry learn@optiriskindia.com www.optiriskindia.com/ Sarjapur Outer Ring Road, learningsolutions/register.php Iblur - 560102 Bangalore, Karnataka Personal Details Payment Details Surname_______________________________________________Mr/Mrs/Ms Fees (Rs)_______________________________________________________ First Name______________________________________________________ Instrument Type Position___________________________Department___________________ cheque demand draft money order online transfer Company_______________________________________________________ (For online transfer please contact - Nitesh : +91 9717039970) Address________________________________________________________ Instrument No___________________________________________________ ______________________________________________________________ Instrument Date_____________________________________(DD/MM/YYYY) Phone (O)_________________________(M)___________________________ Payable at______________________________________________________ Email__________________________________________________________ Sponsor Details I wish to sponsor this event Delegate Category Name__________________________________________________________ Industry Academics (Professor & researchers, etc) Research Student Position________________________________________________________ I have read and understood the booking terms and conditions Company_______________________________________________________ Phone (O)________________________(M)____________________________ Signature_____________________________Date______________________    Booking terms and conditions For registration and more informa- tion on the workshop or to find Customer Information exclusive jurisdiction of whose court the out about exhibition, sponsorship. Disclaimer parties hereby agree to submit. Please contact : The registration fee for the event covers the The organizers reserve the right to amend the following : Attendance, copy of documenta- programme if necessary. Nitesh Naveen tion, lunches and light refreshments. Accom- INDEMNITY : Should for any reason outside Cancellation Policy  + 91 9717039970 modation is not included. Detailed delegate the control of OptiRisk Learning Systems (P) information will be sent to you approximately ltd (hereafter called OptiRisk), the venue or Confirm your CANCELLATION in writing up two weeks before the event. Payment is the speakers change, or the event be can- to 15 working days before the event and required in advance of the event, or at the celled due to industrial action, adverse receive a refund less a 10% service charge.  nitesh@optiriskindia.com latest, paid at the event. Payment may be weather conditions, or an act of terrorism, Regrettably, no refunds can be made for #501, Block :10, made by par cheque or demand draft if OptiRisk will endeavour to reschedule, but cancellations received less than 15 working Zenith, Suncity, favour of “OPTIRISK LEARNING SYSTEM the client hereby indemnifies and holds days prior to the event. However, SUBSTITU- (P) Ltd.” payable at Bangalore. OptiRisk harmless from and against any and TIONS are welcome at any time. Sarjapur Outer Ring Road, all costs, damages and expenses, including Iblur : 560102 , Bangalore attorneys fees, which are incurred by the Karnataka client. The construction validity and perform- ance of this Agreement shall be governed by all aspect by the laws of India to the www.optiriskindia.com
  14. 14. ABOUT US SIMILAR PROGRAMS THAT MIGHT INTEREST YOU  Asset and Liability Management – Tools & About Unicom OptiRisk India Learning Solutions: Latest Strategy The mission of OptiRisk India Learning Solutions is to be a niche  Business Valuation In Emerging Economy – knowledge provider in Finance, Energy, IT, Infrastructure and Risk The Why, How And How Not To Management domain.  Merger and Acquisition – The Why, How Areas of Expertise And How Not To   Credit Risk In Emerging Economy   Risk Management in Financial Trading in  Energy Sector   Stress & Scenario Testing in Financial Industries Serviced Services   Working Capital Management in India   OUR UPCOMING WORKSHOPS:    PMP (Project Management Professionals)  Project & Infrastructure Finance  Essentials of Finance for Managers  Managing Successful Programme (MSP)  Essentials of Financial Market  Prince2 – Project Management Certification Centre for the Analysis of Risk and Optimisation Modelling Applications CARISMA: The Centre for the Analysis of Risk and Optimisation Modelling Applications is an interdisciplinary research centre which is supported by the strategic research initiative of Brunel University.

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