Advanced Operational Modeling (Expansion)

Description

This hands-on advanced modeling course deals with a common issue encountered by finance professionals: how to modify an existing model to dynamically incorporate a new potential operating and/or financing scenario? This session will cover design and flexibility concepts as well as various Excel techniques. Participants will be given an existing model of a company and asked to include an expansion scenario.

Prerequisites

This course builds on "Building a Financial Model (of a Company)", so participants may want to complete that course prior to taking the "Advanced Operational Modeling (Expansion)" session.

Time

8 hours

Learning Topics

Design and Structure a Financial Model

Design a clear and logical financial model
Incorporate an assumptions section that sets out the parameters of the expansion project

Build Powerful Scenarios and Financial Statements

Include a switching mechanism to turn the expansion on and off
Permit the user to choose the year of expansion and the schedule/timing of Capex and incremental production capacity

Modify all Relevant Schedules

Calculate the impact of the expansion on the company
Incorporate a new term loan (with mandatory repayments) in the model to finance the project
Add an excess cash flow sweep feature to an existing term loan
Ensure that the pre-existing debt schedules continue to work properly
Properly incorporate the new financing into the financial statements and ensure the balance sheet stays balanced
Value the expansion project to determine its impact on the overall value of the company
Assess the credit quality of the company taking into account the expansion and related financing