Understanding Corporate Finance

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Business Issue - As commercial financial institutions attempt to expand client relationships and build sources of fee-generating services, the skills and knowledge of frontline lenders and relationship managers must be enhanced to include an understanding of corporate finance.

Omega Performance’s Solution - Understanding Corporate Finance is a concentrated, highly interactive workshop that provides participants with a solid understanding of core corporate finance concepts and modern techniques and products. Participants learn to build stronger relationships with corporate clients by credibly discussing corporate finance opportunities and appropriately assessing options. During the workshop, participants use the principles of time value of money in practical applications, quantify and evaluate a company’s cost of capital, apply corporate valuation techniques, and assess various corporate finance strategies.

What Is Included

Understanding Corporate Finance is a comprehensive, workshop-based course in which practical exercises are used to illustrate and apply various techniques and tools available to corporate finance practitioners. During the workshop, participants are actively involved in the roles of corporate financiers as well as clients, and work together to assess corporate financial decisions, conduct business valuations, and evaluate corporate financial strategies.
Understanding Corporate Finance uses comprehensive case studies to illustrate and analyze corporate financial decisions and strategies.

The workshop covers the following topics:

Investment Decision Evaluation Methods

Time value of money
Discounted cash flow
Present and future value
Payback Rule
Net present value
Internal rate of return

The Cost of Capital

Cost of debt and equity capital
Weighted average cost of capital
Cost of debt
Dividend approach to cost of equity
Capital Asset Pricing Model
Effect of leverage on weighted average cost of capital
The cost of equity in privately-owned firms

Business Valuation Techniques

Assets basis
Ratio multiples, EBIT, EBITDA, and P/E
Dividend Valuation model
Private company valuation adjustments
Enterprise value using Free Cash Flow to the Firm model

Instruments of Corporate Finance

Common stock
Preferred stock
Convertible debt
Warrants and rights issues
Subordinated debt
Mezzanine financing
Venture capital
Bonds and commercial paper

Initial Public Offerings

Mergers and Acquisitions

Commercial/financial rationale
Diversification/Integration strategies
Due diligence
Share purchase agreements
Warranties and indemnities
Types of acquisitions

Delivery Options

Understanding Corporate Finance is a two-day workshop conducted by Omega Performance consultants.

Results You Can Expect

Understanding Corporate Finance helps staff:

Build additional sources of fee income for the institution
Expand or retain commercial relationships through additional services and professional knowledge
Differentiate the institution from competitors
Improve efficiency in identifying and handling new corporate finance opportunities
Control risk for the institution

Who Should Be Trained

Understanding Corporate Finance is for commercial lenders, commercial relationship managers, commercial credit managers, and loan administration staff.

Prerequisites

Participants should have sufficient credit experience and/or have successfully completed Omega Performance’s Commercial Loans to Business or an equivalent course.