Business Case Modelling

Duration: 2 days

A flexible and robust financial model decreases modelling risk and provides decision makers across all industry sectors with the analytical tools needed to assess the outcomes of important business scenarios. Financial models built according to best practice modelling standards improve the efficiency and confidence of all users – from modelling developers, managers, debt financiers, equity investors and model auditors to the CFO and Board of Directors.

This intensive two day workshop will give you the tools you need to master efficient best practice modelling, increase your modelling productivity and learn how to avoid common modelling pitfalls.

Business Case Modelling will help you and your team to

Build best practice financial models using the SMART modelling methodology
Meet the needs of decision makers and finance professionals across all industry sectors
Decrease model risk and increase your modelling productivity
Achieve consistent and accurate outputs
Build a powerful scenario manager and run what-if analysis to accurately assess your project

Who should attend this course?

This course has been developed by Corality’s financial modelling specialists and provides you with the fundamental skills required to build a financial model. It is suitable for all professionals involved in building, reviewing or analysing information from financial models.

Course outline

Day one

The importance of financial models in business

Understand the key principles of financial modelling
Learn and discuss why getting the financial model right is so important
Learn the characteristics of a model that are needed to forecast effectively

How to layout a model for flexibility and reducing risk

Understand how by using SMART, models are easily navigated and readily checked
Master efficient use of range names
Boost user confidence by building in checks to make the model easier to review

Learn to model more efficiently

Learn tips and tricks to save valuable time while modelling
Master keyboard shortcuts to enhance your productivity

Understand the cashflow waterfall

Introduction to the order of the cashflows and how to quickly sense check
Discuss how to incorporate senior debt into the cashflow
Know what elements are important to different stakeholders

Day two

Modelling business cashflows

Model and discuss how escalation is modelled and impacts cashflows
Build a re-usable structure of volume and price calculations to determine revenue
Discuss and construct operational costs, both fixed and variable

Incorporate a typical corporate debt facility

Learn about annuity repayment and how to incorporate it into the model
Calculate and discuss typical corporate finance covenants
Discuss alternative debt repayment methods

Effective communication of results to stakeholders

Understand and calculate project and equity returns (NPV and IRR)
Know when to use a payback calculation to approximate a sweep
Analyse the impact of gearing on returns

Build a powerful scenario manger

Save critical time and deliver rapid analysis using our proven approach to scenario management
Transform scenarios into yet another way to test the model in all scenarios all of the time
Build confidence in your analysis through pre-programmed combinations of model inputs

Know and avoid the easy mistakes that you can make!

Avoid the common errors made in calculating the key project finance ratios and cashflows
Understand how to incorporate self-checks into all of your analysis
Learn the tricks of the trade to rapidly identify a wide range of errors