Financial Analysis, Planning & Control

Introduction

Management has now become an integral part of operation in a wide range of organizations. Financial analysis, planning and control provides an understanding of the various aspects in an organisation from calculative aspect to other related practices in organisation. The key element of the programme is the focus on practical application of financial models and analysis, which are used to assess strategic and operational positions of the organisation.

This is crucial for organisation in terms of understanding cost reductions and create additional value for companies. You will learn about the financial business environment, strategic planning, management reporting, and decision control support.

This training course on Financial Analysis, Planning & Control is aimed to provide a clear insight of decision-making process, various valuations methods, planning and interpreting financial information.

This training course will highlight:

• The conceptual backdrop for both the financial and economic dimensions of analysis and decision-making
• The nature of financial statements and the key financial tools and techniques in the broader context of how and where they are applied in the assessment of business performance
• The projection of financial requirements and analysis of financial information for planning and control
• The analysis of investment decisions using time-adjusted measures, taking strategic perspective and dealing with risk and uncertainty
• The valuation of businesses and how value may be enhanced through mergers and acquisitions, and restructuring and reorganisations
• Develop and monitor specific performance indicators, reporting on trends and identifying causes on unexpected variance

Objectives

The objectives of this training course are to provide delegates with the necessary tools and techniques to find better answers to questions such as:

• What is the exact nature and scope of the problems to be analysed, and which specific variables, relationships, and trends are likely to be helpful in analysing specific problems?
• How precise an answer is necessary in relation to the importance of the problem itself?
• How reliable are the available data, and how is this uncertainty likely to affect the range of results?
• Should the outputs of decisions be expressed in cash flow terms, or in terms of accounting profit, to evaluate the financial implications of a decision?
• What limitations are inherent in the tools to be applied, and how will these affect the range of results obtained?
• How important are qualitative judgments in the context of decision-making, and what is the ranking of their significance?

Training Methodology

The training methodology is interactive with group exercises and is suitable for all employees involved in functions management. The pace and level of the training workshop is customized to the understanding of the delegates. Ongoing back-up and support is available after the training on request to the supplier, and the training course is also available for in-house presentation as well as for “Competency Transfer”.

Who Should Attend?

This Financial Analysis, Planning & Control training course is suitable to a wide range of professionals, but will greatly benefit:

• Financial officers, controllers, and accountants
• Treasurers, corporate planning and business development professionals
• Sales and marketing professionals
• Managers from any other non-financial areas that need or wish to understand the financial aspects of analysis, planning, and control
• Managers involved in financial decision makings
• Middle and junior management involved in planning and forecasting
• Individual with no basic finance backgrounds; has ambitions to pursue advance training courses in Finance; and wants to acquire specific skills needed to secure a new role or improve their career prospects
• All participants will be able to offer their input, based on their individual experiences, and will find the training course a forum for upgrading and enhancing their understanding of best corporate financial practices in the areas examined.

Course Outline

DAY 1

The Challenge of Financial Economic Decision-Making

• The Practice of Financial / Economic Analysis
• The Value-creating Company
• Corporate Value and Shareholder Value
• A Dynamic Perspective of Business
• The Agency Problem and Corporate Governance
• What information and data to use?
• The Nature of Financial Statements
• The Context of Financial Analysis and Decision-making

DAY 2

Assessment of Business Performance

• Ratio Analysis and Business Performance
• Management’s Point of View
• Owners’ Point of View
• Lenders’ Point of View
• Ratios as a System – Pyramids of Ratios
• Integration of Financial Performance Analysis
• Economic Value Added (EVA)
• Predicting Financial Distress and Z-score Model

DAY 3

Analysis of Investment Decisions

• Applying Time-adjusted Measures
• Net Present Value (NPV) and Internal Rate of Return (IRR)
• Modified Internal Rate of Return (MIRR)
• Strategic Perspective
•  EVA and NPV
• Refinements of Investment Analysis
• Equivalent Annual Cost (EAC)
• Sensitivity Analysis, Scenario Analysis, Simulation, and NPV Break-even
• Dealing with Risk and Changing Circumstances

• DAY 4

  Projection of Financial Requirements

• Interrelationship of Financial Projections
• Operating Budgets
• Standard Costing and Variance Analysis
• Cash Forecasts and Cash Budgets
• Sensitivity Analysis
• Dynamics and Growth of the Business System
• Operating Leverage
• Financial Growth Plans
• Financial Modelling

• DAY 5

  Valuation and Business Performance

• Managing for Shareholder Value
• Shareholder Value Creation in Perspective
• Evolution of Value-based Methodologies
• Creating Value in Restructuring and Combinations
• Financial Strategy in Acquisitions
• Business Valuation
• Business Restructuring and Reorganisations
• Management Buy Outs (MBOs) and Management Buy Ins (MBIs)