New York Institute of Finance

Chartered Investment Banking Analyst™

Available dates

Apr 20—May 22, 2020
25 days
New York, New York, United States
USD 13116
USD 524 per day
Apr 20—May 22, 2020
Online
USD 13116
Oct 12—Nov 13, 2020
25 days
New York, New York, United States
USD 13116
USD 524 per day
+2 more options

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About the course

The CIBATM program develops the complete set of desk-ready skills to succeed in the competitive world of corporate finance and investment banking. Candidates will develop familiarity with US GAAP and IFRS accounting standards, learn how to value investment projects under conditions of uncertainty, acquire essential financial modeling skills, be able to assess the credit quality of companies and gain a thorough understanding of the M&A process from target company identification to funding strategies and deal structuring.

The CIBATM curriculum comprises five Professional Certificates. Four of the Certificate programs are week-long in-person offerings offered over 4 contiguous weeks, while the fifth Certificate is offered as a week-long in-person class or a digital class that can be completed remotely at your own pace.

CURRICULUM

Week 1

MODULE 1: ACCOUNTING CONCEPTS

  • Introduction to financial accounting
  • Balance sheet equations
  • Types of ownership
  • Function of an audit

MODULE 2: MEASURING INCOME

  • The income statement
  • Revenue recognition and the matching concept
  • Relationship between balance sheet and income sheet
  • Statement of retained earnings
  • Earnings per share

MODULE 1: ACCRUAL ACCOUNTING AND FINANCIAL STATEMENT FORMATS

  • Adjustments to accounts
  • Implicit transactions
  • Classified balance sheet
  • Income statement
  • Case study - Goodyear, Inc. balance sheet and income statement

MODULE 2: ACCOUNTING FOR SALES

  • Revenue recognition
  • Revenue measurement
  • Credit sales and accounts receivable
  • Assessing level of accounts receivable

MODULE 1: LONG LIVED ASSETS AND DEPRECIATION

  • Overview of long lived assets
  • Depreciation
  • Depreciation methods
  • Gains and losses on sales of fixed assets
  • Intangible assets
  • Depletion

MODULE 2: DEFERRED TAXES

  • Concept of deferred taxes
  • Computation of deferred tax items
  • Other deferred tax items Liabilities and interest
  • Current liabilities
  • Long term liabilities
  • Accounting for leases

MODULE 3: EQUITY

  • Shareholder rights
  • Authorized, issues and outstanding shares
  • Preferred stock
  • Issuance of shares
  • Exchanges and conversions
  • Dividends

MODULE 1: EQUITY

  • Background on stockholders equity
  • Types of capital stock
  • Cash dividends
  • Preferred stock
  • Employee stock options
  • Other items

MODULE 2: CASH FLOW

  • Purpose of the statement of cash flows
  • Types of cash flow
  • Preparing the statement of cash flows

MODULE 3: FREE CASH FLOW

Week 2

MODULE 1: ACCOUNTING FOR INVESTMENTS

  • Overview of corporate investments
  • Short term investments
  • Long term investments in bonds
  • Market, equity and consolidation methods

MODULE 2: PENSION ACCOUNTING, ACCOUNTING FOR STOCK OPTIONS

  • Pension plan types
  • Measures of defined benefit pension plan liabilities
  • Cost components of a pension plan
  • Plan assets

MODULE 1: OVERVIEW OF CREDIT

  • Interaction of the market, the client and credit
  • Understanding market, credit and operational risks
  • The 5Ps and 5Cs of Credit
  • Shareholder Value Added
  • Risk/Reward and capital allocation
  • Purpose and Payback

MODULE 2: CREDIT ANALYSIS FUNDAMENTALS

  • Corporates versus Financial Intermediaries
  • Specialized Industries
  • Specialized Products
  • Sources of information

MODULE 3: BUSINESS AND INDUSTRY ANALYSIS

  • Industry Analysis including SWOT, critical success factors and Porter framework
  • Operation/Business analysis
  • Business risk versus financial risk
  • The asset conversion cycle
  • Environmental and Regulatory risk analysis
  • Management Analysis
  • Early Warning Signs
  • Credit red flags
  • Exercise: Participants will complete the business and industry analysis for the selected company

MODULE 1: RATIOS AND CREDIT STATISTICS

  • Advantages and Limitations of ratios
  • Types of Ratios including: profitability, asset quality and efficiency, leverage and coverage
  • Peer comparisons/Industry benchmarks
  • Specialized industry ratios
  • Seasonality
  • Overall performance ratios: DuPont formula
  • Exercise: Balance Sheet Recognition exercise : Participants will complete the ratios for the selected company

MODULE 1: CASH FLOW ANALYSIS

  • Structure of the cash flow statement
  • Sources and Uses
  • Reconciliations including PP &E, Intangibles, Investments, Deferred Taxes, Long term debt, Minority interest and Equity
  • Exercise: Participants will complete the cash flow for the selected company

MODULE 2: HISTORICAL FINANCIAL ANALYSIS

  • The Audit
  • Review of historical patterns and industry performance
  • Income Statement analysis
  • Balance Sheet analysis
  • Cash Flow analysis
  • Exercise: Participants will work in small groups to complete the FYE analysis

MODULE 1: OFF BALANCE SHEET ITEMS

  • Contingent liabilities
  • Operating leases
  • Debt of joint ventures and unconsolidated subsidiaries
  • Guarantees
  • Take-or-pay contracts and obligations under throughput and deficiency agreements
  • Receivables that have been factored, transferred or securitized
  • Contingent liabilities e.g. potential legal judgments or lawsuit settlements

MODULE 2: ADDITIONAL RISKS TO CONSIDER

  • Financial guarantees
  • Performance guarantees
  • Ratings triggers
  • Covenants
  • Revenue recognition
  • Unusual gains and losses
  • Asset write-offs
  • Swap exposures
  • FX exposure
  • Pension deficits
  • Securitization
  • Structural subordination
  • Partnerships/SPVs
  • Leases
  • Environmental
  • Product liability
  • Exercise: Annual Reports: identifying and recognizing industry and company specific off-balance sheet risks

MODULE 3: FORECASTING

  • Building a forecast-framework and methodology
  • Qualitative and quantitative factors
  • Base, management, and downside cases
  • Critical value drivers
  • Analyzing results- assessing Debt capacity, Recommending financing alternatives, Public versus private, quantifying results and drawing conclusions
  • Exercise: Forecasting the critical value drivers for selected companies

MODULE 1: STRUCTURING AND DOCUMENTATION

  • Investment grade versus non-investment grade
  • Holding company analysis
  • Guarantees, Keepwells, LOMIs
  • Collateral Secured versus unsecured
  • Liquidation analysis
  • Borrowing Base
  • Covenants
  • Subordination
  • Exercise: Due diligence for selected case studies

MODULE 2: COMPARING CREDIT RATINGS

  • Internal risk ratings
  • Rating agencies
  • External sources
  • Exercise: Participants will present the complete credit analysis for the selected company. Financial calculator required

Week 3

MODULE 1: INTRODUCTION AND OVERVIEW

  • Time value of money
  • Present and future value
  • Compounding (annual, periodic, continuous)
  • Annuities and perpetuities
  • Complex problems

MODULE 2: PROJECT ANALYSIS

  • Payback and discounted payback
  • Internal rate of return (IRR) and modified IRR
  • Net present value (NPV)
  • EVA
  • Pros and cons of each

MODULE 1: DISCOUNTED CASH FLOW VALUATION

  • Brief Review of Financial Statements
  • Overview of DCF and intrinsic valuation
  • Determining Cash Flows
  • Real vs nominal returns

MODULE 2: TERMINAL VALUE

  • Asset values
  • Comparables
  • Perpetuities and growing perpetuities
  • Enterprise Value vs Equity Value

MODULE 1: COST OF CAPITAL

  • Risk and return overview
  • Cost of Debt
  • Straight
  • Convertible
  • Cost of Equity
  • Capital Asset Pricing Model
  • Alpha
  • Beta
  • Equity risk premium
  • Other methods
  • Weighted Average Cost of Capital

MODULE 1: CAPITAL STRUCTURE

  • -n theory
  • MM
  • In practice
  • Costs of financial distress
  • Optimal capital structure
  • Adjusted Present Value
  • Differences to WACC valuation process
  • Pros and cons
  • Peer Group Valuation
  • Selecting the peer group
  • Key ratios
  • P/Es, EV/EBITDA, etc

MODULE 1: FINANCING THE CORPORATION (AND TRANSACTIONS)

  • Bank lending
  • Term loans and lines of credit
  • Bilateral and syndicated loans
  • Debt
  • Investment grade
  • High yield
  • Convertibles
  • Preferreds
  • Equity
  • Private Equity
  • Venture Capital
  • Private Equity
  • Public Equity
  • IPOs
  • Secondary (US)/ Rights Offerings (Europe)
  • Mergers & Acquisitions
  • Rationale
  • Payment
  • Leveraged Buyouts / Management Buyouts
  • Wrap-up case study

Week 4

MODULE 1: ADVANCED EXCEL FOR FINANCIAL MODELING

  • Introduction / Tips & tricks that will help you speed up your spread sheeting
  • Multiple sheet models
  • Multiple file models
  • Drilling down
  • Logical tests: Building warnings into your models
  • Protecting your data
  • Database activities
  • Dfunctions
  • Grouping downloaded data by account headings
  • Vertical and horizontal lookup tables
  • The Choose function: Using Choose to calculate stocks & debtors on 3 different bases
  • Interactive formulas to extract data
  • Using masks or switches
  • String functions
  • Data tables
  • Outlining
  • Graphs
  • Indirect addressing
  • Consolidation
  • Macros
  • Each module will be followed by hands on exercises

MODULE 1: MODELING VALUATION

  • Introduction and Overview
  • Basic Valuation Techniques
  • Pro-Forma Modeling
  • Exercises 1. Projecting simple financial statements, determining the value of equity
  • Case Study Exercises Build Financial Model for Goodyear

MODULE 1: MODELING M&A

  • Review and Discussion
  • Mergers and Acquisitions
  • Case Study Exercises Brown-Forman Distillers Acquisition of Southern Comfort
  • Nestle's Acquisition of Ralston Purina
  • Case Study Exercises
  • Cost of Capital and CAPM
  • Exercise 1 Return on equity
  • Exercise 2 Seven steps using CAPM to determine the cost of capital
  • Exercise 3 Implied risk premium in the current P/E multiple
  • Exercise 4 Four steps using the Gordon Model to determine the cost of capital
  • Exercise 5 Four steps using the P/E multiple to determine the cost of capital
  • Financial Valuation of Goodyear
  • Case Study Exercises

MODULE 1: MODELING ACCRUAL ACCOUNTING VALUATION

  • Review and Discussion
  • Accrual Accounting Valuation
  • Exercise 1: Accrual accounting valuation of Wal-Mart Stores
  • Exercise 2: Accrual accounting for GE
  • Exercise 3: Accrual accounting for Hewlett Packard
  • Exercise 4: Accrual accounting valuation of Peets Coffee
  • Valuation Using Multiples
  • Transaction Multiples
  • Exercise 5: Valuation of Eli Lilly using multiples
  • Discussion
  • Special Valuation Issues
  • Exercise 6: Implied Profit Margin
  • Exercise 7: Three stage valuation model
  • Goodyear: Applying the Market Approach and Accrual Accounting Exercise 8: Develop an accrual accounting valuation model for Wal-Mart

MODULE 1: WARRANTS

  • Review and Discussion
  • Warrants and Executive Stock Options
  • Exercise 1: Warrant valuation
  • Exercise 2 : Value Wal-Mart Stores outstanding warrants
  • Debt Valuation
  • Exercise 3: Rating adjusted yield-to-maturity
  • Exercise 4 : Expected debt return
  • Exercise 5: Expected cash flow and return on debt
  • Share Repurchases
  • Exercise 6: Using share repurchases to calculate growth in distributions
  • Exercise 7 : Sustainable growth rate
  • Exercise 8: Share repurchases for comparable companies
  • Presentation of Goodyear Valuation and Conclusion

MODULE 1: MERGERS AND ACQUISITIONS - CONCEPTS AND THEORIES PART I

  • Mergers and Acquisitions Overview
  • Key Drivers of a Successful Acquisition
  • Attractiveness of Target Companies
  • Acquisition Structure
  • Sequence of Events
  • Documentation and Agreements

MODULE 1: MERGERS AND ACQUISITIONS - CONCEPTS AND THEORIES PART II

  • Managing for Value Creation
  • How Does the Integration Process Affect Value Creation?
  • Valuation
  • Financing the Acquisition
  • Anti-takeover Mechanisms
  • Anti-trust Policies

MODULE 1: MERGERS AND ACQUISITIONS - STRUCTURING THE DEAL

  • Legal structures
  • Tax structures
  • Accounting
  • Letter of Intent
  • Seller paper, earn outs, hope certificates
  • Special cases
  • Tax loss mergers
  • Break-up/sum-of-the-parts/split-offs
  • LBOs
  • Roll-ups, consolidation plays
  • Distressed (Bankruptcy) M&A
  • Special Purpose Acquisition Corp. (SPAC), Blind pool
  • Reverse merger, backdoor IPO

MODULE 1: FREE CASH FLOW MODELING

  • Free Cash Flow and the Objectives of the Firm
  • Components of Free Cash Flow
  • Cost of Capital
  • Capital Budgeting Using Free Cash Flow
  • Modified Free Cash Flow
  • Using Free Cash Flow to Evaluate Acquisition Opportunities
  • Integration of Acquisitions

Week 5 : Day 5

MODULE 1: ACCOUNTING FOR MERGERS AND ACQUISITIONS

  • Equity Method of Consolidation
  • Purchase Accounting for Business Combinations
  • Forecasting the Performance of the Combined Company
  • Internal Revenue Code Section 338(g) and 338(h)(10) Transactions

WHAT YOU'LL LEARN

REAL WORLD EXAMPLES AND CASE PRESENTATIONS FOR COMMON TO COMPLEX ANALYSIS IN MAJOR SUBJECT AREAS

  • Be fully cognizant of the key accounting structures, preparation of accounts and how to complete key fundamental analysis.
  • Describe the components of the balance sheet
  • Analyze the effect of transactions on the balance sheet equation
  • Compare the features of sole proprietorships, partnerships and corporations
  • Describe the function of an audit
  • Explain the regulation of financial reporting
  • Explain how accountants measure income
  • Determine when a company should record revenue from a sale use the concept of matching to record the expenses for a period Demonstrate how an income statement is related to a balance sheet
  • Account for cash dividends and prepare a statement of retained earnings
  • Explain the double-entry accounting system
  • Analyze and journalize transactions
  • Post journal entries to the ledgers
  • Prepare and use a trial balance
  • Explain the accounting adjustments required at the end of the fiscal period
  • Explain the role of adjustments in accrual accounting
  • Explain the difference between explicit and implicit transactions
  • Describe components of a classified balance sheet
  • Prepare a classified balance sheet
  • Describe components of a single and multiple step income statement
  • Prepare a multiple step income statement
  • Use ratios to assess profitability
  • Determine proper period in which to record revenues
  • Link inventory valuation to gross profit
  • Assess accounts receivable
  • Mergers and acquisitions, concepts and theories
  • Accounting for M&A
  • Free cash flow – a powerful decision making metric
  • Structuring the deal

Who should attend

Entry level finance professionals, corporate bankers, investment professionals, and mid-level career transitions

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