Financial Analysis With Planning and Control

Overview:

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:

• Understand the use of financial statements and tools and techniques of financial analysis that assist managers in support of more informed and therefore better decision-making.

• Understand the links between long and short-term planning, and being able to develop and prepare financial models and operating budgets and the use of Excel models to build financial growth planning models and prepare traditional and activity-based budget models.

• Use of the techniques of budgetary control: development of product standards, flexed budgets, variance analysis, and use of the results of variance analysis to improve operational performance.

• Use of Discounted Cash Flow (DCF) and other appropriate techniques that will support the company in its more effective analysis of capital investment projects.

• Understand how corporate value and shareholder value may be increased through the use of appropriate financial strategies, including mergers and acquisitions, and restructuring and reorganizations.

• Share  knowledge gained throughout other divisions and departments of the company.

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).