Corporate Analysis for Investment Analysts

Overview

This course is designed for investment banking executives and other private equity investors who need to improve their skills in analysing potential investment targets. The programme will focus on examining the key elements of the investment target’s markets, operations, strategic direction and overall management and management capabilities and how they should combine to produce a successful investment opportunity. This is central to the role of identifying optimum investment targets and also in understanding how the investment manager can increase company value over time.

Using the Four Ms of Business Diagnostics designed exclusively by JBS Training, the delegate will review all the key areas of the target company case studies covered during the programme’s intensive workshops, analysing how each area can impact on the company’s longer-term performance. We will understand how we can improve certain aspects of the target’s business in order to maximise investment return.

By using forecast cash flow analysis we can also directly calculate the direct impact of different investment and operational strategies on company valuations.

In addition to corporate bankers this course is also useful also for new banking risk team members who need to understand financial risk as part of their risk analysis.

Content
  • To use the four Ms framework designed by JBS Trianing, in a systematic manner to provide order and consistency in information gathering as part of the due diligence for analysis of potential investee companies and in monitoring existing portfolio businesses;
  • To review a number of case study company scenarios from key industries, to assess the risk;
  • To apply practical information gathering and analysis techniques to real cases studies in a project workshop environment thus learning through the application of the theory real companies;
  • To assess principal techniques of business analysis using internationally recognised and applied business analysis models;
  • To delve deeply into all the areas of external, market, strategic and operating risk and to cover key areas of due diligence in all those areas, analysing what is important for analysis and reporting purposes and to identify key links and trends in the company’s performance for forecasting purposes;
  • To identify and analysis all the principal areas of management due diligence and to understand why the effectiveness and capabilities of management are central to the successful operation and performance of the client company;
  • Undertake interactive workshops as part of the training programme to understand how management due diligence can be undertaken in practice and to identify all those key questions that need to be prepared in advance of meeting the investee company management;
  • Review key techniques in business analysis and understand the business’ strategic development over the longer term and the sustainability of the company’s strategic success;
  • Review key areas of financial analysis for the company, covering anticipated return from the project investment, assessing the initial NPV and project IRR as well as assessing the value of companies (both pre funding and post funding) based on discounted cash flow forecasts.
Overview

This highly applied interactive course will allow delegates to understand the fundamentals of the different types of company valuation techniques employed in valuing companies from wide range of different industries. It will also allow participants to assess which valuation techniques are more appropriate for different industries and given changing economic and business circumstances.

In addition to investment bankers this workshop is particularly useful for corporate credit officers and bankers when assessing the value of security in the form of a pledge of shares provided by a client company as part of their loan security packages.

Content
  • To allow bankers to understand the potential value of their corporate borrower’s enterprise value when taking a pledge of shares;
  • To introduce debt providers to the principles of company valuations;
  • Review of the main company valuation methods tailored to the needs of debt providers;
  • To focus on market based and cash flow based company valuations;
  • To assess the different methods of market based valuations for different industries;
  • To learn the practical application of company valuations using discounted cash flow forecasts through financial modelling;
  • To assess the impact of company performance on company values using DCF modelling;
  • Simulation of negotiations between the bank and client in determining the Enterprise Value of the client company.
Overview

This programme is designed for investment officers and senior corporate executives to provide them with a detailed and applied understanding of the necessary steps required to identify and acquire a target acquisition company while making a success of that acquisition, going forward.

During the course, we will review how M&A transactions are structured and will provide a detailed overview of the corporate finance issues involved, to explain the M&A process for both public and private transactions and to learn the lessons from both success and unsuccessful takeovers. We will examine a number of recent transactions in the oil and gas industry and other high-profile recent M&A activity.

From an applied perspective, the workshop programme provides the delegate a comprehensive view of how companies should identify acquisition targets and what are the key areas of analysis that the parent needs to undertake in terms of the post-acquisition strategic fit, to anticipate the potential success of the merger or acquisition.

Furthermore, delegates will learn how to value companies and potential acquisition targets using a range of different valuations methods, but spending most of day three of the course reviewing discounted based cash flow valuation techniques which will allow the delegates to justify the offer price for acquisition targets.

Content

After attending the programme, delegates will:

  • Understand the rationale of M&A compared with organic growth or joint ventures;
  • Be aware of the critical importance of synergies between the parent and acquisition target;
  • Learn lessons from successful and unsuccessful international mergers and acquisition;
  • Identify the key business areas of the target company that need to be analysed as part of the acquisition;
  • Understand the importance of identifying and enhancing synergies between the parent and acquisition target to increase the success of the M&A deal;
  • Identify the importance and the methods used to smooth the integration of the target into the consolidated position, including the importance of cultural and managerial fit;