FINANCING AND INVESTMENT DECISIONS

LEARNING OBJECTIVES

The life of corporations, funds, investors, is made of taking investment decisions and structuring their financing. Being equipped with the capacity to represent, assess and support the financial image of a firm and its projects, is a must for every CFO.

This  module assumes there is a good understanding of the accounting representation of the firm. It builds on this assumtion to show how that representation can be interpreted from a financial perspective to use it and enrich it with additional data to produce a valuation of the portfolio of projects of the firm, its financing instruments, and thus the whole firm.

The participants will master the following elements: the identification of cash flows necessary to the valuation of projects and financing instruments, the assessment of the cost of capital to be applied to that exercise (linking the firm and its market environment), how do the diverse techniques compare, their limitations and arguments and finally, identifying the optimal investment and financing decisions. Discover a complete valuation journey, from the asset side, representing the cash flow engine of the firm, to the liability side, representing the commitments to the financing stakeholders. This module combines techniques, decision-tools, and financial strategy.

In this module you will

• learn the techniques and approaches to investment and financing decision-making

• assess the valuation of companies as a function of their business drivers and their capital structure

• understand the diversification concept and how markets can impact your valuation

• define an optimal capital structure depending on the nature of the activity of the firm

• understand how to source the ingredients of any valuation exercise

• use the present value techniques in a wide range of contexts, including bond and equity valuation, and in the presence of a term structure of interest rates

• link cash flow forecasts to valuation and financing requirements

• understand how to assess and manage a bond portfolio with respect to interest rate risk

DAY 1

The Asset side of the firm

Valuation techniques

• Discounting techniques

• Decision-making quantitative criteria

• Allocating to projects depending to the criteria

 

Valuing financial assets (Bonds)

• The term structure of interest rates

- Interest rates typology

- Spot and forward rates

• Bond pricing

- Bond valuation with single and multiple rates

- Duration and yield-to-maturity

- Bond risks and portfolio immunisation

 

Valuing financial assets (Equity)

• The enterprise value as a portfolio of projects

• The enterprise value vs. the equity value

• Valuation approaches

-Multiples, their drivers and comparables

-The dividend-discount model, its use and limitations, the value of growth opportunities, its takeaways for the 

P/E ratio

-The free cash flow model

FCFs for projects

FCFs of the firm vs. FCFs to the equity 

The first years and the terminal value

The use of business drivers

Sensitivity analysis and simulations

-Specific cases unsolvable with traditional approaches

ABOUT THE FACULTY

KIM OOSTERLINCK

Kim is Professor of Finance at the Solvay BS of the Université Libre de Bruxelles. There,

Kim is in charge of the courses of Advanced Finance, and Financial History in particular.

Kim has published extensive research in topics related to financial valuation and financial

history cases.

NICOLAS DE CLERCQ

Nicolas is CFO of Kinepolis. He has extensive experience in leading financial positions: controller

at KBC, Telenet and Solvus. He was subsequently finance manager at Start People

and VP Finance at USG People. He has been CFO of Kinepolis since 2012.

MORE INFO

HOW TO GET THE MOST OUT OF YOUR TRAINING

A good understanding of the contents covered by the module "Understanding the company" is crucial.

Solvay Brussels School

Franklin Rooseveltlaan 42

1050 Brussels

 

The Solvay building is located in the green heart of Brussels, on the edge of the beautiful Ter Kameren forest and a 15-minute walk (or 5 minutes by public transport) from the bustling center of Brussels. If desired, there are numerous
accommodation options (hotels and (air) bnb) in the neighborhood and in the center of the city. Need help?  Do not hesitate to contact us.

1.650 euro, excl VAT

Other price formulas: 

  • You can choose to follow this module in the context of the EMF programme. If you complete all 15 modules in a period of 15 subsequent months, then you pay € 16.000. If you spread it over a period of 3 years, then you pay € 18.000. 

  • Five Module package: 7500 euro / 5x2 modules of your choice. 

  • In-company:  This training personalized as part of your in company: good idea! Call us. 

NEXT TRAINING DATES

JANUARY 2020 23-24

 

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