Essentials of Corporate Finance

INTRODUCTION

This programme covers the essentials of Corporate Finance focusing on the knowledge and skills necessary for making sound financial decisions.

Skills and decisions which will enable you to remain competitive, minimise costs, maximise revenues and also reduce/control risk.

The programme therefore focuses on the essential elements of corporate finance:

• The Finance Decision – how to finance the business using traditional and new methods of finance available in international markets
• The Investment Decision – evaluating potential projects using the latest techniques
• Risk Management – how to minimise risks using the latest techniques

As a result companies will see improvement in key financial indicators Return on Investment (ROI) and Return on Equity (ROE) and Economic Value Added (EVA).

SEMINAR OBJECTIVES

Participates attending this programme will develop knowledge and skills in finance enabling them to:

• Make (and/or) contribute to strategic financial decisions
• Evaluate both the latest and traditional finance options available
• Analyse capital investment and financing decisions using appropriate discount rates by applying Payback, ARR, NPV, Discounted Payback, IRR and MIRR using Excel® and provide recommendations for action
• Identify the key success factors/critical factors, investment opportunities and threats within their sector thereby preparing you for future challenges

TRAINING METHODOLOGY

The programme will be conducted along workshop principles using case studies and interactive worked examples. Participants will be actively engaged, individually and as part of a group, in the analysis and evaluation of case studies, simulation and discussions.

Participants will also be given a detailed set of handouts and examples of various software that will enable them to review the topics covered at a later date.

PERSONAL IMPACT

• You will be able to further your professional skills.
• You will be able to make more informed and hence better
• financial decisions using various models and software.
• Your increased financial and decision making skills will increase your importance and ability to contribute effectively to your organization’s goals.
• You will be better placed to liaise effectively with other departments on planning, forecasting, budgeting matters, financial and investment analysis

ORGANIZATIONAL IMPACT

• Participants will not only be able to analysis various business problems but will also be able to evaluate various courses of action and make sound recommendations for action using the latest techniques and leading software
• New skills will help to make more informed and hence better management decisions.
• Exposure to different techniques will help the company to efficiently, manage and control everything from cash to capital investment, thereby increasing revenue and reducing costs.
• The use of case studies and illustrations of real companies will help delegates understand how to apply different financial skills and analysis techniques in a work situation.
• The knowledge gained can be shared amongst other departments of the company.

Agenda

Day1 - Financial Management

• The Role & Scope of Corporate Financial Management
• Managing International Trade including:
• Methods of Payment such as Letters of Credit, Collections
• Incoterms
• Benefits & Risks
• The Objective of the Organisation and Stakeholder’s Needs
• The Financial Environment post Banking Crisis
• Corporate Social Responsibility (CSR) and Corporate Governance
• Case Study – Making Corporate Financial Decisions

Day2 - The Finance Decision

• Long-Term Sources of Finance
• Types of Equity Capital
• Types of Debt
• The Optimum Capital Structure/Leverage – Equity or Debt ?
• Weighted Cost of Capital (WACC) and The Capital Asset Pricing Model (CAPM
• Calculating your WACC and CAPM
• When & How to use WACC and CAPM
• The Dividend Decision
• Short-Term Sources of Finance
• Case Study – Making Finance Decisions

Day3 - The Investment Decision

• Establishing the Forecast Cash Flows
• International Issues, e.g.
• Exchange Rate Risk
• Transfer Payments
• Restrictions on Capital Flows
• Evaluating the Capital Investment Decision using:
• Payback
• Accounting Rate of Return (ARR)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Analysing the Investment Decision using:
• What If Analysis
• Sensitivity Analysis
• Simulation
• Establishing appropriate “Hurdle Rate”
• Case Study – Making Investment Decisions

Day4 - Risk and Treasury Management

• Identifying Financial Risks
• Internal (SWOT Analysis)
• External (PESTLE Analysis)
• Measuring Financial Risk
• Developing and Implementing a Risk Management Strategy
• Establishing a Treasury Department
• Treasury and Risk Management Techniques
• Case Study – Making Risk Management Decisions

Day5 - Corporate Strategy

• Corporate and Financial Strategy
• Growth Strategies
• Joint Ventures, Merger & Acquisitions
• Valuation
• Risks & Benefits
• Financing a Merger or Acquisition
• Capital Reconstruction or Restructure
• Case Study – Making and Evaluating Strategic Decisions