Investment Banking Modules

We have specially crafted our Investment Banking modules to train a participant in every aspect of Finance including Financial accounting, Financial modelling, Risk modelling, Statistical Modelling, Portfolio modelling, Power point skills, excel, VBA and many more . All the below mentioned modules are to be taught practically, so that a participant can gain hands on experience of real world in a simulated environment. The below mentioned modules are available as a package as well as on standalone basis.

We provide certification for all the below mentioned modules (separately as well) endorsed jointly by Chitkara University, Bombay Stock Exchange and Marketconnected to the successful participants. To fulfil the certification requirements, a participant has to complete the end of module exam and score at least the minimum passing marks.

Module 1: Accounting and Basic Excel

Basic principles of Accounting
Financial Ratios
Overview of Selected Accounting standards
Overview of IFRS vs US GAAP
Overview of SEC filings
Overview and working knowledge of Excel
Formulae useful for the coming weeks in comps and models
Advance functions + combination of functions
Practice sheet for formulae

Module 2: Basic Valuation Techniques: Trading Comparables

Sourcing Information
Identifying the appropriate peer group
Spreading of comps
Making necessary adjustment for extraordinary items
Arrive at the multiples
Build output and interpret the results
Self-Practice

Module 3: Company Profiles & Industry Overview

Overview and working knowledge of PPT
Structuring Short form profiles 1 pager and 2 pagers
Structuring Long form profiles
Industry Overview of 2 industries

Module 4: Basic Valuation Techniques: Transaction Comparables

Sourcing Information
Selecting the appropriate deal
Understand the strategic rationale
Spreading of comps
Account for control premiums, synergies
Making necessary adjustment for extraordinary items
Calculate equity value and enterprise value
Arrive at the multiples
Build output and interpret the results
Self-Practice

Module 5: Advance Valuation Techniques: Financial Modelling

Overview & Applications of Financial Modelling
Income Statement, Balance Sheet and Cash Flow Statement relationship
Structure assumptions and inputs sheet
Spread Historical financial statements
Build Working capital, depreciation and capital expenditure schedule
Business revenue forecasting using KPIs and economic indicators
Unlevered vs. levered FCF
Capitalizing inappropriately classified expenses
Handling stub periods and midyear adjustments
Handling working capital items, deferred taxes and long-term accruals
Common pitfalls – enterprise vs. equity value, unlevered vs. levered FCF
Calculation of Discount Rates
- Deriving the cost of debt and cost of equity using CAPM
- Delevering and relvering beta
- Estimating the weighted average cost of capital (WACC) and determining the optimal WACC
FCFF to FCFE
- Calculating net debt and treatment of debt equivalents such as preferred stock, convertible securities, capital leases and minority interest
- Calculating options and convertible securities using both the standard and treasury stock methods
Arrive at a terminal value/intrinsic share price at the DCF module
- Perpetuity approach
- EBITDA multiple approach
- Common pitfalls
Model testing, sensitivity and Scenario Analysis
Introduction to deriving qualitative information from DCF model for equity research reports

Module 6: Risk Modelling, Monte Carlo Simulation and ARMA in Excel

Introduction Credit Risk, Market Risk, Liquidity risk, Interest Rate Risk
BASEL II and III
Build a Monte Carlo engine in excel
Market Risk calculations
Liquidity- LCR calculations
Interest rate risk

Module 7: M&A/LBO modelling in Excel

M&A

Understanding M&A: strategic fit, market environment, etc.
Introduction to M&A and typical buy side and sell side processes
Extensive accretion-dilution analysis
Why acquisition and equity accounting is important
Understanding M&A: Financial Modelling Construction and key ratios
Sourcing and cleaning historic data
Project consolidated financial statements, and learn to make correct adjusting entries for goodwill and fair market value write ups, advisory fees and financing fees and debt refinancing
Learn proper treatment of deferred taxes created in M&A and convertible securities and options
The role of working capital and extra cap ex requirements
Valuations in a merger transaction
Sensitivity analysis using data tables to determine accretion/dilution to target shareholders in various stock/cash scenarios
Sales, EBITDA, and ownership contribution analysis
Calculating pre-tax synergies to break-even
Error-check a merger model
A review of common deal structures and review of changes in the accounting for business combinations
Understand the asset vs. stock purchase decision
Address situations in which amortization may be tax-deductible

Leveraged buyouts (LBO)

Using typical deal structures and current market metrics
Build a dynamic Base/Best/Worst Case scenario toggles
Learn to integrate typical LBO debt structures, including secured, unsecured, mezzanine and PIK debt, convertible securities and equity sweeteners
Build a revolving credit facility and cash sweep
Model LBO Equity Structures
Integrate typical equity structure, including management Incentives and rollover, Preferred Stock, contingencies and earn-outs
Build a dynamic Sources and Uses of Funds Schedule
Modelling Goodwill, and various transactional adjustments
Build a returns analysis capturing all providers of capital using XNPV and XIRR functions
Error-proofing and integrity-checking an LBO model.
Build sensitivity tables required for correct analysis of an LBO, including the construction of multiples, and IRR tables using both data tables and various sorting functions in Excel, including VLOOKUPS, OFFSET, CHOOSE, and INDEX.

Module 8: Statistical modelling and MLR model in Excel

Overview of statistical techniques
Uses of statistical techniques in finance
Model building
Sourcing Historical data in Excel
Cleaning and sanitizing data
Setting up an automated model
Developing Simple Linear Regression Model
Developing Multiple Linear regression Model
Developing Probit and logit Models

Module 9: Portfolio Management/Investment Consulting Module

Asset Management, Investment Management, Investment Consulting industry overviews
Institutional Investing – Portfolio Management cycle
Build an IPS statement and compliance mechanism
Asset Allocation Modelling
Manager selection inclusive of hiring/firing a fund manager based on correlation analysis
Introduction to Portfolio back testing under different economic scenarios
Fund Manager due diligence and research
Portfolio monitoring
Performance Measurement over multi period
Performance evaluation both relative and risk adjusted measures
Investment Manager appraisal after critical analysis
Guidelines for successful portfolio management advisory

Module 10: Revision and Interview preparation

Revision about the course
Preparing interview questions
Overview of interview etiquettes
Mock Interviews