Financial Modeling (for Credit Professionals)


Design and create a dynamic financial model of a company that adheres to the highest industry standards

This hands-on course focuses on the skills required to design and create an interactive financial model for the purpose of analyzing credit capacity and the impact of various debt structures for a company. The course material includes model design, logic, construction, financial concepts and accounting treatment. During the seminar, participants will build a model that includes a forecast of a company’s income statement, cash flow statement and balance sheet. Participants will recapitalize a company’s balance sheet and then forecast specific pieces of debt and equity so that the model can be used for credit purposes or as a Leveraged Buyout (“LBO”) model.




3 days

Learning Topics

Design and Structure a Financial Model

  • Design and layout a financial model clearly and logically
  • Discuss the need for a model to serve as a marketing tool
  • Create clearly defined inputs and assumptions sections
  • Connect strings of data to create assumptions and footnotes

Build Powerful Scenarios and Financial Statements

  • Use switches to create effective scenarios and value drivers
  • Design and incorporate a company’s income statement, balance sheet and cash flow statement
  • Construct all necessary schedules

Modeling Capital Structure

  • Build a Sources and Uses schedule within a model
  • Recapitalize a company’s balance sheet
  • Properly incorporate Senior Term Debt with an amortizing repayment schedule
  • Create a robust bank operating line (or revolving credit facility) with complex cash sweep schedules
  • Build a provision for non-cash Payment in Kind (PIK) interest on various pieces of debt
  • Create a well-designed shareholders’ equity schedule
  • Properly link the debt and equity schedules into the financial statements and balance the company’s balance sheet
  • Understand the need for circularity within a model
  • Make a model iterative by incorporating circular references
  • Learn to create a “circular reference breaker” to rid a model of undesirable error messages when the model crashes
  • Understand and incorporate appropriate operating and credit ratios
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