Investment Analysis and Decision-Making
Analyze the Profitability and Financial Balance of an Investment Project, Establish the Business Plan
Duration : 5 days
When studying a prospective operation such as an investment, which involves both the present and the future, one often feels unequipped with the necessary tools and skeptical about the accuracy of a forecast. However, in such situations, it is crucial to plan and adopt a rigorous methodology to reduce uncertainty. This training will help you understand and construct a "forecast investment and financing plan," commonly known as a "business plan," and derive all relevant information for making a well-informed decision. How to model reality? What criteria to use and when? Is it profitable? Is it viable? What are the variations? And generally: how to enhance your control over the project?
Learning Objectives
Conduct the financial modeling of the investment
Evaluate the profitability and verify the financial balance of the investment
Validate the economic forecasts of the project
Training Program
Conduct the Financial Modeling of the Investment
Implement the elements of the financial study
Represent reality and choose the assumptions for representation
Execute the phases of the analysis and decision-making process
Understand profitability and balance: the two aspects of the financial study, priorities, and ad hoc criteria
Why prefer the use of "cash flows"?
Practical Exercise: Establish the relationship between cash flows and accounting results
Establish the "Business Plan"
Schedule the cash flows and its components
Consider the various cash flows in the study: CAF, EBITDA, CAPEX, Working Capital, "Free Cash Flows"
Prepare the forecast documents
Format the "investment plan"
Practical Exercise: Based on the project's numerical forecasts, create a complete business plan in Excel: income statements, balance sheets, and cash flow statements
Evaluate the Profitability and Verify the Financial Balance of the Investment
Calculate profitability indicators
Net Present Value (NPV)
Internal Rate of Return (IRR)
Accounting return rates (ROI, ROA, ROE)
Payback period
Criteria with dual rates
Practical considerations of these criteria
Practical Exercise: Using the business plan, calculate the profitability indicators in Excel and evaluate profitability
Verify the Financial Balance of the Investment
Explore financing options
Identify funding sources and their costs
Determine the discount rate
Plan the financing and monitor cash flow
Format the "financing plan"
NPV and IRR on equity
Practical Exercise: Complete the business plan in Excel, verify the financing balance, and assess the impact on equity
Validate the Economic Forecasts of the Project
Determine economic forecasts
Investment expenditures in fixed assets and working capital
Project activity revenues and cash gains
Analysis period and residual values
Consider other aspects of cash flow calculation (taxation, inflation…)
Adapt to special cases
Practical Exercise: Translate economic data into the analysis model
Ensure the Reliability of Economic Forecasts
Structure, present, and critique the business plan
Understand the scope and limitations of indicators
Address the challenge of incorporating risk
Conduct sensitivity analyses and scenarios
Perform simulations and reassess initial choices
Practical Exercise: Critique a study produced by others
Transfer
Continue your training journey in your participant space:
Access resources, self-assess the skills acquired during your training, and facilitate the implementation of your commitments in your professional context.
Key Points
Training led by Christian Pierrat, a finance professional and author of "Corporate Financial Management"
Participants use and retain a presentation and calculation model ("template") in Excel during the training
Who Should Attend This Training
Accounting managers
Chief Financial Officers (CFOs)
Administrative and financial managers
Controllers
Certified accountants
Business unit directors
Treasurers
Prerequisities
A solid foundation in accounting and corporate finance
Teaching Methods
A training program structured around skill transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous sessions
A multi-step learning path to promote engagement, learning, and transfer
Training that encourages participant engagement for better retention of teachings
Satisfaction and Evaluation
Skill evaluation conducted throughout the training by the participant (self-assessment) and/or the trainer according to the training modalities.
Online evaluation of the training action in your participant space:
Immediate feedback at the end of the training to measure satisfaction and perception of skill progression relative to the training objectives. With your agreement, your overall rating and comments will be published on our website through Verified Reviews.
Follow-up 60 days after the training to validate the transfer of acquired skills in the workplace.
Attendance tracking and issuance of an individual training certificate or certificate of completion.
LONDON
128 City Road, EC1V 2NX London
PARIS
38 Rue Boulard, 75014, Paris