Introduction:

This training program emphasizes the practical application of financial models and analysis to assess an organization’s strategic and operational positions. Where this approach is vital for understanding cost reductions and creating added value, covering the financial business environment, strategic planning, management reporting, and decision-making support.

Program Objectives:

At the end of this program, participants will be able to

• Interpret financial data for strategic decision-making.

• Use ratio analysis and EVA to evaluate performance.

• Apply NPV and IRR in investment analysis.

• Create accurate financial projections and budgets.

• Use valuation techniques to enhance shareholder value.

Targeted Audience:

• Financial officers, controllers, and accountants.

• Treasurers, corporate planning and business development professionals.

• Sales and marketing professionals.

• Managers from any other non-financial areas that need or wish to understand the financial aspects of analysis, planning, and control.

• Middle and junior management as a useful element in their career advancement.

Program Outline:

Unit 1:

The Challenge of Financial Economic Decision-Making:

• The Practice of Financial/Economic Analysis, including understanding financial statements and data.

• The Value-Creating Company and its impact on corporate value and shareholder value.

• Corporate Governance and the Agency Problem in financial decision-making.

• A Dynamic Perspective of Business and the context of financial analysis.

• The importance of selecting appropriate information and data for decision-making.

Unit 2:

Assessment of Business Performance:

• Ratio Analysis: Management’s, Owners’, and Lenders’ Perspectives.

• Pyramids of Ratios: Integrating Financial Performance Analysis.

• Economic Value Added (EVA) and its relevance in assessing business performance.

• Predicting Financial Distress using the Z-Score Model.

• Analyzing Business Performance from multiple stakeholder perspectives.

Unit 3:

Analysis of Investment Decisions:

• Applying Time-Adjusted Measures: Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR).

• Strategic Perspectives: Integrating EVA, NPV, and MIRR into decision-making.

• Refinements of Investment Analysis, including Equivalent Annual Cost (EAC).

• Sensitivity Analysis, Scenario Analysis, and Simulation for Risk Assessment.

• NPV Break-even Analysis and dealing with changing circumstances in investment decisions.

Unit 4:

Projection of Financial Requirements:

• The Interrelationship of Financial Projections: Operating Budgets and Financial Growth Plans.

• Standard Costing, Variance Analysis, and Cash Forecasts for financial control.

• Sensitivity Analysis and Operating Leverage in financial planning.

• Developing Financial Models for growth and sustainability.

• The Dynamics of Business Systems and their impact on financial projections.

Unit 5:

Valuation and Business Performance:

• Managing for Shareholder Value: Evolution of Value-Based Methodologies.

• Creating Value in Business Restructuring, Reorganizations, and Combinations.

• Financial Strategy in Acquisitions and Mergers.

• Techniques for Business Valuation and Analysis.

• Business Restructuring: Management Buy-Outs (MBOs) and Management Buy-Ins (MBIs).