Comprehensive course analysis
Who should attend
Finance for Lawyers is recommended for legal professionals who are seeking to expand their understanding of (corporate) finance and investments. The program does not assume any prior knowledge regarding finance, mathematics, or statistics.
About the course
Lawyers play a pivotal role in the financial world, but often know little about finance. Finance for Lawyers aims to fill this knowledge gap by providing people with a legal background with the knowledge to better understand the financial decision-making of their corporate clients, and to communicate more effectively in integrated teams of lawyers, accountants, and investment bankers.
How you will benefit
- Understand the key basic concepts in corporate finance and investments
- Be able to ask the right questions to your clients, and to their main financial advisors - accountants and investment bankers
- Add more value to your client when negotiating with the other party, as you will be able to estimate the financial implication of specific changes in the deal
- Improve your understanding of current financial market developments and trends
Both in corporate finance and in investments, lawyers are important. Corporate restructuring transactions such as mergers, takeovers, joint ventures, leveraged buy-ins and buy-outs almost never occur without in-depth legal advice and close involvement of lawyers. In investments, lawyers play a key role in the legal issues of the establishment and structuring of investment vehicles. Beside this, they often serve as negotiators in investment transactions.
Of these transaction processes, finance, accounting and economics are crucial aspects. In the field of finance, issues like, valuation, cost of capital and the understanding of cash flows and the time value of money should be part of the knowledge of all those involved in the transaction. Accountancy issues are crucial in the due diligence process of the transaction, and the economic theories of agency and corporate governance are the basis for the structuring of investment vehicles and management compensation.
In all these disciplines lawyers may have a bit of a handicap, since their training usually does not include finance-related issues. Moreover, in these transaction processes, they usually operate in multidisciplinary teams including client representatives, investment bankers, accountants and the lawyers themselves. The other players usually have a strong finance or accountancy orientation, which puts the lawyers at an even greater disadvantage, not only in their understanding of the issues involved, but also in the common finance vocabulary.
Besides the theoretical basics, the focus in Finance for Lawyers will be on the practical implementation of the analytical tools in a number of smaller cases. Also, a significant part of the available time will be used to illuminate the exact meaning of the relevant professional language and terminology.
Time Value of Money
- Time value of money (TVM) and its implications in the corporate world
- Discounting and compounding
- Financial Accounts
- Balance Sheet, classification and ratios
- Profit and Loss Account, classification and ratios
- Statement of Cash Flow
- Working Capital and Capex
Valuation and Cost of Capital
- Valuation methods: introduction
- Discounted Cash Flow (DCF) valuation
- Beta and the Cost of Capital (WACC)
Mergers and Leveraged Transactions
- Key features of an M&A transaction
- Valuation in M&A
- Valuation in practice
- Private Equity and Leveraged Buyouts (LBOs)
Matti Suominen is Professor of Finance at Aalto University School of Business. He specializes in information economics in financial markets, market microstructure and corporate finance. Suominen has previously worked as a consultant at the European Corporate Finance Practice of McKinsey & Co...
Lennard Keijzer is a partner in De Brauw’s Corporate practice. He specialises in M&A with a focus on private equity work (sell-side, buy-side, governance advice and management participation). In addition, Lennard is often consulted for his expertise in the field of warranty and indemnity insu...
Videos and materials
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Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
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