Managerial Finance – Advanced

An Accounting and Finance Course

*This course can be tailored or customized to your specific needs.

Course Overview

In part two, non-financial managers obtain deeper insights into fiscal principles, including cash management, the time value of money, and discounted cash flow. Valuation impacts of mergers and reorganizations are also covered.

Objectives

  1. Identify strong cash management techniques
  2. Understand the time value of money as it pertains to organizational worth
  3. Describe the importance of discounted cash flow to investors
  4. Apply valuation models for mergers and acquisitions

Lesson 1:Cash Management

  • Establish strong billing and collection processes
  • Cash management factors
    • The organization’s level of liquidity
    • Management of cash balances
    • Short-term investment strategies

Lesson 2: Time Value of Money

  • Compare investment alternatives and solve problems involving loans, mortgages, leases, savings, and annuities
  • Understand the value of the money held today
  • Determine how to turn a single sum of money or a series of equal, evenly-spaced payments or receipts promised in the future into an equivalent value today
  • Examine how to calculate the fifth value if you are given any four of:
    • Interest Rate
    • Number of Periods
    • Payments
    • Present Value
    • Future Value

Lesson 3: Discounted Cash Flow

    • Understand the value of a business/asset based on its ability to generate cash flows for the providers of capital
    • Review how discounted cash flow yields the overall value of a business, including both debt and equity
    • Recognize the Components of Discounted Cash Flow
      • Free Cash Flow
      • Terminal Value
      • Discount Rate
    • Advantages
    • Disadvantages

Lesson 4: Valuations of Mergers and Acquisitions

  • Understand how to compare publicly traded companies (“Public Comps”)
  • Apply Precedent Comparable Transaction analysis (“Transaction Comps”)
  • Discounted Cash Flow analysis
  • Sum-of-the-parts analysis
  • Other: Depending on the unique characteristics of the transaction, financial advisors will perform a number of other analyses to arrive at fair value like Leveraged Buyout (“LBO”) Analysis, Historical Exchange Ration analyses etc.