Business case modelling using Excel

See the course schedule for this course

Cashflow evaluation of strategic business decisions is a critical function of any organisation. This course takes you through the most efficient ways of building efficient cashflow analysis models in Excel to answer critical questions, provide what-if analysis and comparison of different scenarios. This course covers a range of situations including expansions, capital investments, acquisitions and contract negotiations and will give you the tools and confidence to build your own models to analyse any business situation.

Learn fundamental skills for the evaluation of business decisions

• Use state-of-the art techniques to gain more certainty in your evaluations
• Build a model from scratch to learn a robust framework of tools and tips
• Learn the about the best features of Excel to get more outputs in less time
• Suitable for all sectors inc. private equity, terminal value, exit multiples, etc
• Time saving techniques for scenario management and what-if analysis
• 100% hands-on – bring your own problems or discussion points
• Realistic analysis of expansions, pricing, acquisitions and negotiations
• Highly personalised coaching from our expert trainers

How will this financial modelling course help you and your team?

• Get more confidence in you decision through supportive analysis
• Achieve consistent accuracy using robust business case modelling methods
• Work more efficiently with keyboard shortcuts and Excel settings
• Increase the user-friendliness and presentation aspects of your models

The course has been designed to suit anyone who requires cashflow analysis to support a business decision in any sector – corporate management, consulting, business analysts, corporate finance, planners and investment analysts.

In addition to constructing a flexible business case model we also show you the tools available to find errors in yours, and other peoples, financial models. When large investments are at stake it is crucial to have a structured approach to finding mistakes before it is too late!

Financial modelling and analysis of cashflows in Excel

Excel is the global standard for analysis and development of cashflow models and it is a key skill at all levels of corporate life. Efficient use of Excel gives you an amazing advantage over your competition in negotiations and this course will give you all the confidence and skills you need to be able to quickly and accurately analyse and support your decisions.

Our trainers have experience from financial modelling consulting and public training in Asia, United States, the Middle East, Australia and Europe and we are confident that you will enjoy our best practice approach to building robust, flexible and transparent financial models. Learn new skills that will impress your clients, colleagues and managers.

100% Practical. Learn financial modelling on your own laptop

Over two days full of skills relevant to your day to day role you will be coached by our expert trainer to build your own business case model from scratch. You will be working on your own laptop which significantly increases your learning and ensures that the skills stay with you after the course finishes. A wide variety of the participants’ backgrounds result in discussion of different perspectives – corporate management, investors, and banks. 

What-if analysis and scenario management

What-if analysis and scenario management is essential in answering typical business case analysis questions

• Is it worth investing in the new project?
• Should we expand in twelve or twenty four months
• What is the break-even point of negotiations?
• What is the cashflow impact of closing one division?

We show you a structured approach to analysing any business scenario without having to stay back late in the office ‘running scenarios’. Our techniques give you the competitive edge to really impress clients, managers and colleagues.

Day One

A robust framework for corporate decisions

• Analysis of timing requirements for a flexible strategy
• Expansion, acquisitions, investments – what to look out for
• Portfolio models or single asset model – build for the future
• Methodology and techniques for robustness and efficiency

More efficient ways of working in Excel

• Automate formatting through Styles – achieve complete consistency 
• Essential Excel shortcuts and advanced tips and tricks
• Create custom charts instantly – a great tool for presentations
• Use grouping functionality to increase user-friendliness.

Starting a new model – where do you start? 

• Workbook architecture – build on a good foundation
• Efficient modelling of flexible timing for strategic options
• Use binary flags to work more efficiently and avoid mistakes
• CPI calculations – how to avoid common errors

Cashflow modelling for business case analysis

• Capital investment programs and cost blow-outs
• Delays scenarios in construction or investment phases
• Operational volumes and different production cases
• Price paths and revenue calculation
• Capital structure analysis – debt and equity
• Fixed and variable cost calculation and trend analysis

Continuous emphasis

• Discussion around recommended functions and their applications
• Data functions – LOOKUP, VLOOKUP,HLOOKUP, INDEX, MATCH
• Logic functions - SUMPRODUCT, ISERROR, CHOOSE, OFFSET
• Return calculations – IRR, XIRR, NPV, XNPV
• What-if analysis – Goal Seek and Data Tables
• Excel Shortcuts – Navigation, formulas and presentation
• Analysis tools – Custom formatting, 2D Data tables
• Charts – Custom charts, advanced formatting
• Dynamic graphical data – highlighting min/max, multiple series
• Working efficiently with Data Validation
• How to work effectively with dates in Excel 

Day Two

Capital structure analysis

• Basic funding schedule – Debt and Equity
• Debt repayment options – PMT, PPMT, Dynamic
• Incorporating and testing of flexible debt term

Case study – finding errors in a financial model

• Use Excels built in tracing functionality
• Systematic process to finding errors
• Discussion and demonstration of third party add-ins
• Financial model audit processes
• What do you do if you find an error in a cashflow model?

Business case ratio analysis – analyse long term trends and weaknesses

• Efficient coding and interpretation of business case cashflow ratios
• Identifying minimum and average ratios and corresponding dates
• NPV and IRR analysis

Scenario and what-if analysis

• Incorporating of risk parameters into a decision model
• How to compare pros and cons of 2 or more scenarios - simultaneously
• Sensitivity analysis using ‘flex’-cells
• Constructing a Scenario Manager - a structured approach to sensitivities/scenarios
• Generate decision data tables for all scenarios to support strategic decisions
• Managing modelling risk – Can you prove that your model is really working?
• Sector specific analysis
• Private equity exit analysis – What are your returns?
• Terminal value calculations – Asset sale or terminal liabilities
• Running NPV analysis – How long do you need to wait for your return?
• Break-even analysis – payback and IRR – understand your cashflows

Pre-course knowledge

Prior to the course you are welcome to contact us to discuss suitable preparation. Upon registration you are entitled to the course documentation of our introductory material on Excel functions which will give you the confidence and skills to fully absorb the contents of Business Case Modelling.

Register now

Michael Moran
+61 2 9229 7409

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