Who should attend
The course is ideal for lawyers and others who need to be familiar with the overall concepts and language used in financial analysis, credit transactions and other banking and corporate finance activities.
The course assumes no prior knowledge of finance. The first session introduces the fundamental logic inherent in operating a successful business before delving into the course materials. For those who have never touched spreadsheets before, this course represents a gentle introduction.
About the course
Lawyers, gain a better understanding on corporate & capital market activity
This intensive 3-day course is designed to provide legal professionals with a better understanding of the language and meaning of financial terminology and its relevance to real world economic activity.
A highly practical and interactive course, it combines the material originally offered in the 5-day Financial Analysis and Forecasting course and the 4-day Advanced Business and Financial Analysis course to enhance your knowledge and familiarity of the overall concepts and language used in financial analysis, credit transactions and other banking and corporate finance activities.
Using case studies, lectures and practical group exercises, you will develop a hands-on understanding of the world of finance that enables more effective working relationships with banking and finance professionals.
Day 1: Developing modern financial analysis skills
Introduction to financial analysis
- Differences in UK/US accounting terminology
- Identifying the relationship between cash flow and profit
- Development of an integrated cash flow model
- Understanding the relationships between the three main accounting statements
Exercises - Accounting terminology exercise.
Fundamentals of Accounting Statements - The Profit & Loss Account
- How the P&L has changed over the last 25 years
- Detailed review of the Profit and Loss Account including explanation of all significant accounting terminology.
- Profit types - trading, asset and business
- Inventory, Depreciation, Capitalised interest
- Minority interests and consolidation
- Exceptional and material items
Fundamentals of Accounting Statements - The Balance Sheet
- Detailed review of the Balance Sheet including explanation of all significant accounting terminology
- Understanding the fixed assets note
- Accounting goodwill – what is it?
- Liabilities, pension fund accounting
- Debt and other liabilities like debt
- Deferred tax, contingent liabilities
Accounting Abuses and Update
- Abuses of Fair Accounting
- Basic abuses relevant to all businesses
- More complex abuses relevant to larger groups
Case Study – Major Holiday group
Delegates examine and evaluate the P&L of this major UK based travel group
Day 2: Cash Flow Analysis, Accounting Issues, And Project Analysis
Understanding Cash Flows
- Detailed review of the Cash Flow Statement
- Analysing and interpreting cash flows
- Summarising cash flows for analysis
Case study - Summarising cash flows - delegates summarise cash flows for analysis purposes
Cash Flow Analysis
- Defining free cash flow
Case Study - Examining patterns of cash flows - delegates match cash flows to sectors
Case Study – Cash Flow Analysis
Delegates review the cash flow statement of a further business to gain a better understanding of the content of the statement.
Financial Analysis Techniques – Ratio Analysis
- Objectives of ratio analysis
- Developing ratio analysis skills
- Understanding the classic ratios
- How much information is there in ratios?
- Ratio rules – avoiding errors of principle
Case Study - Ratio Calculation
- Delegates Calculate ratios for a leading UK retail group.
- Delegates consider what ratios do and don’t tell us.
Evaluating Capital Investment Projects
- Introduction to capital budgeting
- Discounted cash flow techniques
- Calculating the internal rate of return
Case study - Speculative housing project - Delegates perform investment appraisals to decide whether to proceed with a capital investment and delate to the borrowing required.
Case Study – Eight Projects
Delegates evaluate a number of projects and decide which projects should be pursued and which rejected.
Day 3: Sovereign, Sector And Business Risk. Leverage And Topical Accounting
Economic and Country Risk
- Understanding the indicators & signals
- Implications of macro-economic change for Investors, Banks and Businesses
- The relationship between business risk & financial risk
- The four phases of the corporate life-cycle
- Identifying appropriate funding structures
- Recognising the drivers of funding strategies
Credit Analysis - The Basic Concepts
- Introducing credit analysis frameworks
- Financial analysis - review of the issues
- Non-financial analysis – Developing a framework
Overview of Non-Financial Analysis
- Strategy analysis - what is strategy/business risk?
- Overview of strategy terminology and concepts.
- Exercises - Strategy concepts multiple choice
Techniques for Corporate Assessment
- A pyramid model for strategy evaluation
- SWOT/Environmental analysis
- Porters five forces
- Boston portfolio matrix
- Environments matrix
- Exercises - Strategy evaluation techniques multiple choice
Overview of Global Accounting in the New Century
- The history of international accounting
- Current international accounting approaches
- The major issues in international accounting
- The implications of the IAS Initiative
- Currently contentious accounting issues
The course instructor is a chartered accountant, who qualified with KPMG. He has held main board financial and general management directorships in both quoted and private companies. He has considerable experience of management in turnaround situations and has completed a number of acquisitions, d...
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Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.