#financial modeling: growing needs of financial modeling skills in financial industry
DESCRIPTION
About EduPristine Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training providers for Finance Certifications like CFA, PRM, FRM, Financial Modeling, Business Analytics etc. EduPristine holds a profound history in training Risk Professionals across the globe. It has been an International Authorized Training provider for FRM & PRM trainings since past 4 years and has helped 250+ FRM aspirants clear the Exam. It is Registered with GARP & CFA Institute as an Approved Provider of Continuing Professional Education (CPE) credits. http://www.edupristine.com/caTRANSCRIPT
© EduPris*ne – www.edupris*ne.com
Financial Modelling Johann Odou and Chris Dunwill
© EduPris*ne | (Confiden(al)
Overview of this Webinar
• The Importance of Financial Modeling (Johann and Chris – 2 different perspec(ves on Modeling)
• How to think about Financial Modeling in your career
• Different Types of Finanical Modeling
• What is ModelOff – The Financial Modeling World Champ(onships
• Modeling Tips and Tricks
• Q&A
2
© EduPris*ne | (Confiden(al)
Presenter: Johann Odou
• Mid-‐Market Investment Banking (Aus / Asia Pac) – Capital Raisings – M&A – Divestments
• My Background to Financial Modeling: Self Taught
How did I use Models? • In IMs • Work with models from the Client or Sell-‐Side • Build models from scratch • Help clients understand and build their own Models
3
© EduPris*ne | (Confiden(al)
Presenter: Chris Dunwill
• Corporate Advisory and Financial Modeling – Turnaround and Restructuring – Opera(onal analysis and improvement – Custom Financial Scenario modeling
• My Background to Financial Modeling: Self Taught
How did I use Models? • Forecas(ng • Decision Making • Big Data • Improved accuracy • Ongoing efficiency
4
© EduPris*ne | (Confiden(al)
How to Approach Financial Modeling
Development • You may or may not be taught directly – Drive your own learning
• Don’t shy away from complex models
• It’s OK not to understand everything – You will oXen feel like you don’t know enough
• Break models down and reverse engineer them • The more you learn, the more you can understand. The more you understand, the more enjoyable it becomes.
The more enjoyable it becomes, the more you do. The more you do, more you learn. Etc etc etc
5
© EduPris*ne | (Confiden(al)
How to Approach Financial Modeling
Applica(on • Apply strong standards and conven(ons
– Robust – Accurate – Easily controlled – Easily reviewed – Professionally presented
• Build for your audience – Communicate clearly and with purpose – An(cipate the next ques(on. – Expect a handover
6
© EduPris*ne | (Confiden(al)
Financial Modeling in Prac*ce
• 3 Way Financial Modeling -‐ Dynamic Balance Sheet, Profit and Loss and Cash flow Repor(ng -‐ Normaliza(on
• Opera*onal Performance analysis -‐ Variance analysis -‐ Ra(o Analysis
• Forecas*ng -‐ Cash flow, Profit and Loss modeling -‐ Scenario Analysis -‐ Sensi(vity Analysis
• M&A Transac*ons -‐ Vendor Due Diligence -‐ Valua(ons -‐ Post Sale adjustments -‐ NPV analysis
• Divestment Transac*ons -‐ Asset, Market Value or Income Valua(ons
7
© EduPris*ne | (Confiden(al)
Financial Modeling in Prac*ce
• 3 Way Financial Modeling -‐ Dynamic Balance Sheet, Profit and Loss and Cash flow Repor(ng -‐ Normaliza(on
8
© EduPris*ne | (Confiden(al)
Financial Modeling in Prac*ce
• Forecas*ng -‐ Cash flow, Profit and Loss modeling -‐ Scenario Analysis -‐ Sensi(vity Analysis
9
© EduPris*ne | (Confiden(al)
Financial Modeling in Prac*ce
• Opera*onal Performance analysis -‐ Variance analysis -‐ Ra(o Analysis -‐ Performance -‐ Dashboards
10
© EduPris*ne | (Confiden(al)
Financial Modeling in Prac*ce • M&A Transac*ons
-‐ Vendor Due Diligence -‐ Valua(ons -‐ Post Sale adjustments -‐ NPV analysis -‐ Synergies
11
© EduPris*ne | (Confiden(al)
What is ModelOff • 2 Hour Online Contest • October 26
• 2 Online Rounds • Live Finals in NY
Why Get Involved • Develop your skills • Get exposure to new Models • Compete against friends • Have fun 50% Discount on Entry “EDUWEB13” www.modeloff.com
12
© EduPris*ne | (Confiden(al)
Modeling Tips and Tricks
Learn how to use the keyboard • Shortcut allow you to move significantly quicker, and oXen with more accuracy eg “ShiX End”
• Keep your formulas consistent. Learn to use tools like INDEX(MATCH) or the OFFSET tool when crea(ng tables – Avoid tools like the Vlookup or Hlookup that require absolute numbers as arguments
• Things that slow down Excel: -‐ Arrays -‐ User defined formulas -‐ Data Tables -‐ Condi(onal formakng -‐ Hyperlinks
13
© EduPris*ne | (Confiden(al)
Q & A
? 14
© EduPris*ne – www.edupris(ne.com
Thank You ! Visit Us On:
hmp://www.edupris(ne.com/ca Contacts Us:
help@edupris(ne.com