Advanced Operational Modeling (Expansion)
This hands-on advanced modeling course deals with a common issue encountered by finance professionals: how to modify an existing model to dynamically incorporate a new potential operating and/or financing scenario?
This session will cover design and flexibility concepts as well as various Excel techniques. Participants will be given an existing model of a company and asked to include an expansion scenario.
Skills / Knowledge
- Design a clear and logical financial model
- Incorporate an assumptions section that sets out the parameters of the expansion project
- Include a switching mechanism to turn the expansion on and off
- Permit the user to choose the year of expansion and the schedule/timing of Capex and incremental production capacity
- Calculate the impact of the expansion on the company
- Incorporate a new term loan (with mandatory repayments) in the model to finance the project
- Add an excess cash flow sweep feature to an existing term loan
- Ensure that the pre-existing debt schedules continue to work properly
- Properly incorporate the new financing into the financial statements and ensure the balance sheet stays balanced
- Value the expansion project to determine its impact on the overall value of the company
- Assess the credit quality of the company taking into account the expansion and related financing