An Introduction to Corporate Finance

04-12-2019
- Training
London Stock Exchange
This course has been designed to give a practical introduction to the key elements of corporate finance. Both equity and debt capital market transactions are covered including strategy, valuation, IPOs,and M&A.
Course overview
This course has been designed to give a practical introduction to the key elements of corporate finance. Both equity and debt capital market transactions are covered, the latter in a one day module that is both an optional addition to the first two days – which concentrate on strategy, valuation, IPOs,and M&A – as well as a standalone course.
Why attend?
Through a combination of presentations, case-studies and worked examples, the course will develop your knowledge of the following key areas:
- the underlying drivers of company worth
- valuation methodologies and techniques
- equity and debt finance raising including IPOs, MBOs and LBOs
- the role of venture capital and the major transaction structures
- corporate restructures and financing alternatives
- public to private transactions
Who should attend?
This three-day course has been designed to appeal to the following professionals:
- corporate finance executives
- financial analysts
- portfolio managers
- M&A advisers
- lawyers
- accountants.
Additionally the course will benefit managers and directors responsible for corporate planning and strategy in their organisations, including:
- corporate treasurers
- heads of finance
- finance directors/finance managers
CPD points: This course attracts 18 CPD points.
Course tutor
DAY ONE – UNDERSTANDING AND VALUING THE COMPANY
8:45 - Registration and coffee
Welcome and introduction
- Course objectives
Background
- What is corporate finance?
- Understanding the concept of corporate finance
- The corporate life cycle
- Risk and reward
Evaluating Corporate Strategy
- How thinking has developed
- Assessing the underlying drivers of company worth
- Boston Consulting Group matrix
- Porter’s Five Forces - Core competencies
Analysing the cost of capital
- The cost of debt
- The cost of equity
- The Capital Asset Pricing Model
- Exercises
Company valuation
- Purpose and application
- Accounting methods and ratio analysis
- Comparative analysis
- Cash flow methods
- Exercises
Discounted cash flow analysis
- Underlying concepts
- Calculating free cash flows
- Enterprise and equity value
- Terminal value calculation
DAY TWO – M&A AND RAISING FINANCE IN THE EQUITY MARKETS
- Raising Finance in the Equity Markets
- The rationale for going public
- IPO timescale and regulatory requirements
- Market requirements
- Cash shells and reverse takeovers
- Pricing the issue
Secondary Issues
- Rights issues
- Open offers and placings
- Bonus and scrip issues
- “Clawbacks”
- Warrants
Mergers and Acquisitions
- Rationale for growth via acquisition
- Good and bad reasons to acquire
- Synergies – types and problems of achievement
- Structuring the transaction – shares or assets
- Consideration – cash, shares or mixture
- Regulatory framework
- Timetable
- Bidder’s strategy and tactics
- Target’s strategy and tactics
- Review of recent transactions
Public Offers
- Regulatory framework
- Timetable
- Bidder’s strategy and tactics
- Target’s strategy and tactics
- Review of recent transactions
Corporate Restructuring
- Benign and forced restructuring
- Signs of corporate failure
- The London rules
- Chapter 11
- Debt / equity swaps
- EU Insolvency Regime
DAY THREE – THE DEBT MARKETS AND STRUCTURED FINANCING
Raising Finance in the debt markets
- Bank risk versus equity risk
- Types of bank finance
- Syndicated loans
- Corporate bonds
- Secondary trading and credit default swaps
The Eurobond markets
- Issuers and deal size
- Bond structures
- High yield bonds
- Rating agencies and their approach
- Inter creditor conflicts
Asset securitisation
- Main asset types secured
- Transaction structuring
- Key variables
- Exercise
Venture Capital, LBOs and MBOs
- Defining transaction types
- Rationale for buy-outs / buy-ins
- How VC houses make the numbers work
- Elements of leveraged financing
- Structuring the transaction
Negotiating the terms of a leveraged buyout
- The position of VC houses
- Defining the exit
- Ratchet agreements
- Drag along / tag along
- Case study
Public to private transactions
- Rationale
- Essential difference from MBOs
- Code issues
- Use in corporate restructuring
- Review of recent transactions
The trainer was interesting and engaging and clearly has a great deal of personal experience of the topics covered. He was able to use this to illustrate the theoretical areas of the course with interesting practical examples. Really enjoyed the course!
The content and the trainer were very good.
It covered all aspects of my corporate finance team’s role in some detail and with great examples.
Very dense and rich content.