Corporate Valuation

Page 1

Fully revised and updated for 2013

Corporate Valuation 20 – 23 October 2013 • Hyatt Regency Hotel, Dubai, UAE

Use tools and gadgets for analysing and valuing securities

Develop an understanding of the business

Comprehend the importance of proper financial statement analysis

Understand methodologies for evaluating derivatives

Gain a clear understanding of valuation tools

www.iirme.com/valuation Organised by:

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Meet Your Expert Course Leader Nabil Zaki has been in the investment and banking industry for more than 30 years. During that period, he assumed senior positions in both corporate finance and treasury with major Wall Street firms and international financial institutions in New York, Canada and the Middle East. He has held high profile management positions with Chase Manhattan Bank, Merrill Lynch, Prudential Securities and Tradition. Currently, Nabil is an adjunct Professor of Corporate Finance and Derivatives at New York University. He taught at New York Institute of Finance (currently known as FT Knowledge) from 1995 until 2004. He lectures extensively on portfolio management, risk management, derivatives, and international capital markets for major Wall Street firms and financial institutions. Nabil also consults a number of banks and financial institutions in the USA, Asia, and Japan in the areas of asset/liability management, credit derivatives and restructuring as well as risk management. Currently, he is the Group Adviser for the Board of Directors of a major Asian bank; EON Bank and an Independent Board Professional Director at the Board of Directors of Signature Asset Management Company Limited - a Cayman Island incorporated company. Nabil taught previously at the American University in Cairo, George Brown College, and University of Toronto. He is a regular commentator on CNN, CNBC and Al-Jazeera. He holds a Masters degree in Economics and Finance from Syracuse University, New York (1981).

+971 4 335 2437

+971 4 335 2438


Top 10 Reasons To Attend This Course This intensive 4-day course is designed to: 1.

Provide the right tools and gadgets for analysing and valuing securities

2.

Develop an understanding of the business and competitive strategy of the firm being analysed

3.

Comprehend the importance of proper financial statement analysis and the study of different ratios as well as cash flow measures of operating, financing, and investing performance of a company

4.

Understand the wide range of methodologies for evaluating derivative instruments as well as off-balance sheet products

5.

Discuss the contemporary approaches and methods for analysing a company’s industry, its competitive position, and sustainability within an industry and the company’s corporate strategy

6.

Provide a clear understanding of the valuation tools for valuing structured notes; i.e. equity-linked notes and other derivativeembedded financial instruments

7.

Comprehend the role of credit analysis in computing the price tag for a company, including an overview of the credit models used in the market

8.

Understand the importance of risk analysis, including market, credit and operational risk variables that could have a great bearing on valuation

9.

Examine the different forecasting techniques being utilised in the market, including regression analysis and time series analysis

10. Understand the corporate financing policies that could have an impact on the company’s valuation; i.e. company’s capital and cost structures, dividend policy

www.iirme.com/valuation


Corporate Valuation 20 – 23 October 2013 • Hyatt Regency Hotel, Dubai, UAE Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 every day and finish at 14:30. There will be breaks for refreshments at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Course Outline

• Funds flow cycles • Variability of funds flows

Day One

• Funds management and shareholder value: -

Cash management

Introduction And Overview

-

Working capital management

• Overview and concepts

-

Investment management

• The role of valuation in capital markets • From business activities to financial statements

Tools Of Financial Analysis And Control

• From financial statements to business analysis

• Management’s point of view

• Why valuation?

• Owners’ point of view

• Macroeconomic analysis and effect on company

• Lenders’ point of view • Integration of financial performance analysis

valuation • Monetary and fiscal policies

• Financial and operating leverage

• Analysis of economic variables

• Liquidity analysis • Leverage analysis

Business Analysis And Valuation Tools

• Stress liquidity

• Industry analysis

• Analysis and assessment of working capital

• Degree of actual and potential competition

• Theory of capital structure

• Competitive strategy analysis

• Anatomy of return on equity

• Sources of competitive advantage

• EBIT-EPS analysis

• Corporate strategy analysis Case Studies Financial Statements

Day Three

• The balance sheet • Operating statement • Cash flow statement

Projections Of Financial Requirements

• Statement of changes in owners’ equity

• Pro forma financial statements • Cash budgets • Operating budgets

Case Studies

Day Two

The Cost Of Capital And Business Decisions • Capital asset pricing model

Valuation And Business Performance

• Dividend discount model

• Valuing the equity

• Analysis of systematic and unsystematic risks

• Valuing the total company

• Discounted Cash Flow Approach (DCFA)

• Value in restructuring and combinations

• Adjusted Present Value Approach (APV) • Economic Value Added Approach (EVA)

Asset And Liability Analysis

• Comparative analysis

• Historical cost and conservation

• Risk categories

• Asset reporting challenges

• Weighted cost of capital

• Revenue recognition and analysis

• Multiple rate analysis

+971 4 335 2437

+971 4 335 2438

register@iirme.com

www.iirme.com/valuation


Corporate Financing Policies

Analysis Of Derivatives And Off-Balance Sheet Obligations

• Factors determining a firm’s debt policies

• Overview of derivatives

• Optimal capital structure

-

Swaps

• Dividend policies

-

Options

-

Futures

• Cost structure • Mergers and acquisitions issues

• Assessment and pricing of derivatives • Quantification of mark-to-market

Contemporary Valuation Methods

• Effect of derivatives on firm’s cash flow and evaluation

• Merton model • KMV model

Contemporary Valuation Techniques

• Monte Carlo simulation

• Merton model and KMV model • Simulation models

Case Studies

• RAROC (Risk-Adjusted Return On Capital)

Day Four

-

Definition

-

Assessment and quantification

-

Effect on pricing and evaluation of equity and balance sheet value

Risk Analysis • Identification of market risk

Who Should Attend?

• Anatomy of market risk • Quantification of market risk

• Financial Analysts

• Value-at-Risk (VaR)

• Investment Analysts

• Variance-Covariance VaR

• Finance Directors

• Simulation VaR • The concept of mark-to-market • Quantification of market risk premium

• Credit Managers • CFOs • CIOs • Treasurers

Credit Risk Analysis

• Assistant Treasurers

• Credit analysis process • The likelihood of counterparty default • Credit risk variables • Country and sovereign risk assessment

• Regulators • Financial Consultants • Financial Engineers

• Relying on credit rating agencies

• Portfolio Managers

• Portfolio credit quality

• Fund Managers

• Importance of data in evaluating credit risk: -

Working under lack of data

-

Rating and scoring

Quantification Of Credit Risk • Regulatory approach to credit risk • BIS-based approach to credit risk

Would you like to run this course in-house?

• Credit VaR • Prediction of stress and turnarounds • Quantification of credit spread and its effect on evaluating equity and pricing bonds and other fixedincome securities

The in-house training division of IIR Middle East

Forecasting Tools • Regression analysis

Tel: +971 4 407 2624

• Time series analysis

Email: CTS@iirme.com

• Monte Carlo simulation

www.iirme.com/cts

• Contemporary projections techniques

+971 4 335 2437

+971 4 335 2438

register@iirme.com

www.iirme.com/valuation


Corporate Valuation 20 – 23 October 2013 • Hyatt Regency Hotel, Dubai, UAE

FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 9428 Dubai, UAE

+971 4 335 2437 +971 4 335 2438 register@iirme.com

www.iirme.com/valuation

DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – +971 4 335 2483 E-MAIL – a.watts@iirme.com WEB BC5093 Event

Course Fee Before 4 August 2013

Course Fee Before 25 August 2013

Final Fee

US$ 3,895

US$ 4,395

US$ 4,695

Corporate Valuation 20 – 23 October 2013

WOULD YOU LIKE TO RUN THIS COURSE INͳHOUSE?

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions will receive a Certificate of Attendance.

DELEGATE DETAILS Name: .............................................................................................................................................................................................................. Job Title: ......................................................................................................... Email: ..................................................................................... Tel: ..................................................... Fax: .................................................... Mobile: ..................................................................................

All registrations are subject to our terms and conditions which are available at www.iirme.com/terms. Please read them as they include important information. By submitting your registration you agree to be bound by the terms and conditions in full.

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A confirmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event. You can pay by company cheques or bankers draft in Dirhams or US$. Please note that all US$ cheques and drafts should be drawn on a New York bank and an extra amount of US$ 6 per payment should be added to cover bank clearing charges. In any event payment must be received not later than 48 hours before the Event. Entry to the Event may be refused if payment in full is not received. Credit card payment If you would like to pay by credit card, please tick here and a member of our team will contact you to take the details

Cancellation If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge. Registration fees for registrations cancelled 7 days or less before the Event must be paid in full. Substitutions are welcome at any time.

Avoid Visa Delays - Book Now Delegates requiring visas should contact the hotel they wish to stay at directly, as soon as possible. Visas for non-GCC nationals may take several weeks to process. All registrations are subject to acceptance by IIR which will be confirmed to you in writing. Due to unforeseen circumstances, the programme may change and IIR reserves the right to alter the venue and/or speakers.

Event Venue: Hyatt Regency Hotel, Dubai, UAE Tel: +971 4 209 1234 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971 4 407 2693 Fax: +971 4 407 2517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

SS/ST FN Finance

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