CFMP Certified Financial Management Professional

Delegate introductions and course objectives

High level overview of course content

Value of the annual report

Understanding the mandatory and discretionary sections of the annual report

Information available in the annual report

Risk assessment documents in annual report

Clarifying the distinction between financial accounting and management accounting

Frameworks and how financial accounting works

Useful management accounting information to obtain to analyse if available

Balance sheet or statement of financial position

Income statement or statement of comprehensive income

Cash flow statement

Different accounting standards and their impact on analysts

IFRS and IFRS for SME

Review of working capital ratios

Components of working capital

How working capital ratios are determined

Interpreting the working capital ratios and what action should be taken

Assessing the working capital cycle

What it means; comparison to peer groups; how to draw conclusions

Extensive examination of working capital and liquidity issues

Extracting potential for improving performance and results

Deeper look into the cash flow statements and how to use them

Overview of significant scandals

WorldCom

Bernie Madoff

Enron

Detailed examination of financial ratios linking financial statements and practical realities of the business

Profitability and return ratios

Short term solvency and liquidity ratios

Long term solvency and stability ratios

Information through comparison

Structured approach on gearing (leverage) distinguishing between financial and operational gearing

Establishing the link between performance and risk taking

Detailed examination of financial ratios linking financial statements and practical realities of the business

Discussion of the three levers in the DuPont analysis
- Earnings and efficiency in earnings
- Ability to turn assets into profit
- Financial leverage

Finding the red flags

Preparing board / senior executive briefings on company versus peer performance

Importance of long-term investment decisions

Magnitude and frequency

How do we know if we are creating value

Management motivation / incentives and agency risks

Importance of long-term investment decisions

Magnitude and frequency

How do we know if we are creating value

Management motivation / incentives and agency risks

Developing a conceptual distinction between value creation and destruction

Techniques and methods of screening tools and methodologies used to evaluate investment alternatives of both cash and profit based approaches

Overview of the differences of cash and profit based approaches assessing each of their relative strengths and weaknesses

Process of reconciling cash to EBITDA

Techniques and methods of screening tools and methodologies used to evaluate investment alternatives of both cash and profit based approaches

Capital investment appraisal – relevant costs and discounted cash flow techniques

Tackling multicurrency investment appraisals

How to effectively use expected values in NPV calculations

The use of sensitivity analysis for reviewing and assessing the strength and comfort of cash flow models

Strong emphasis on understanding a company’s cost of capital and relationship to cash flow risks.

Demystifying risk betas and the capital asset pricing model (CAPM)

The building blocks of systematic and unsystematic risk

Determining financial risk

The underpinnings of how to assess business risk

Developing a weighted average cost of capital (WACC) for a business

Modigliani and Miller’s capital structure theory

Impact of using debt in the capital mix and assumptions about taxation

Impact of dividend policy and why it does or does not matter in corporate valuation considering Modigliani and Miller and current thinking

How to independently assess business and financial risk

Effective use of debt to impact project viability

Strategic aspects relating to corporate expansion

Core concepts and principles of using real options to assess project viability

Methodologies and approaches

Earnings, assets and cash-based methods

How to use dividend valuation, price / earnings and EBITA multiples

Options based valuations – putting numbers to more complex valuation exercises

Evaluating and determining corporate long-term funding strategies and sourcing appropriate finance

Reviewing the latest as well as traditional financing options available

Using quasi debt structures such as convertible loans with a discussion of the pros and cons as to the reasons when this option is or is not appropriate

Equity finance with venture capital (VC) funding

Specific and general borrowing costs

Crowd funding concepts and principles

How Islamic finance is evolving to more mainstream finance and expanding its international reach and relevance

Advantages of raising capital with Islamic finance

Getting the structure right

Managing asset / liability relationship 

Risk identification

Interest rate

Currency

Advanced financial management tools

Managing interest rates
- Transformation of long-term interest rate structure
- Mechanism and how to use interest rate swaps

Tackling currency risk
- Cross currency borrowings
- Currency swaps

The challenges of corporate integration and restructuring - the do’s and don’ts

Methodology of a financial restructuring

Approach to assess if a reconstruction is viable

The underpinnings of a reconstruction plan

Preparing financial reports and executive briefings on investment appraisal analysis

Structure and content of executive / internal reports on financial analysis

The use of ratios / key financial data to convey pros and cons of investment alternatives

Importance of effective advocacy documents in raising finance

Effective use of business plans

Impactful information memoranda

Bond and debt memoranda