Financial Modeling for Business Analysts and Consultants
4.2 (611 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
5,146 students enrolled

Financial Modeling for Business Analysts and Consultants

Learn Financial Modeling in Excel that will allow you to participate in due diligence, strategy or turn around projects
4.2 (611 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
5,146 students enrolled
Created by Asen Gyczew
Last updated 7/2020
English
English [Auto]
Current price: $65.99 Original price: $94.99 Discount: 31% off
5 hours left at this price!
30-Day Money-Back Guarantee
This course includes
  • 3.5 hours on-demand video
  • 1 article
  • 79 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • You will master financial modeling in Excel at the needed for business analysts and consultants level
  • Understand the main challenges in financial modelling
  • Perform the analyses of financial models
  • You will get ready models that you can utilize for your purposes
  • Model your business in Excel
  • Estimate the value of your business
Requirements
  • Basic Excel
  • Basic knowledge of economics or finance
Description

What is the aim of this course?

As a business analysts or a consultant you will have to from time to time create financial models. There are a bit different than business models. In business models you go into details of operations and you focus on getting the links on the KPIs. Those models are usually done for internal purposes, to manage in the right direction the business. Financial models on the other hand are more for external users. You concentrate in them on creating the picture of the business in a standardized, understood by everybody way. You also want to create the financial statements: profit & loss statement, balance sheet statement, cash flow statement.

On top of that you use the financial statements for valuation purposes.

The most typical situation when, as a business analyst or a consultant, you will have to prepare such a model are connected with selling or purchasing a company. You may be doing it on the sell side or on the buy side.  Financial modeling is done as a part of strategy projects, turn around projects, due diligence.

I will NOT teach you everything on financial modelling because it is simply not efficient (and frankly you don’t need it). This course is organized around 80/20 rule and I want to teach you the most useful (from business analyst / consultant perspective) ways to go as fast as possible from rough description to working model in Excel that you can make more and more complicated.

The aim of this course is that you are able to do a financial model of the business as fast as possible.

If done properly, this course will transform you in 1 day into pretty good business analyst that knows how to create fast and efficiently financial models. It is based on my 12 years of experience as a consultant in top consulting companies and as a Board Member responsible for strategy, improvement and turn-arounds in biggest companies from FMCG, SMG, B2B sector that I worked for.  On the basis of what you will find in this course I have trained over 100 business analysts who now are Investment Directors, Senior Analyst, Directors in Consulting Companies, Board Members etc.

I teach step by step on the basis of Excel files that will be attached to the course.  We will go through a real life example of a business and create the financial model for it. To make the best out of the course you should follow my steps and repeat what I do with the data after every lecture. Don’t move to the next lecture if you have not done what I show in the lecture that you have gone through.

 I assume that you know basic Excel so the basic features (i.e. how to write formula in Excel) are not explained in this course. I concentrate on intermediate and advanced solutions and purposefully get rid of some things that are advanced yet later become very inflexible and useless (i.e. naming the variables).

To every lecture you will find attached  (in additional resources) the Excel shown in the Llcture so as a part of this course you will also get a library of ready-made analyses that can, with certain modification, be applied by you in your work.

 

Why I decided to create this course?

This course is a part of my attempt to help business analyst and consultants gain fast useful knowledge that will help them excel at their work. I have done 10 other courses that will help you be great business analysts or consultants. I have covered already: hacks and tricks in Excel, business modelling, market research, management productivity hacks and others. Now you have the opportunity to learn financial modeling in Excel

 

In what way will you benefit from this course?

The course is a practical, step by step guide loaded with tones of analyses, tricks, hints that will significantly improve the speed with which you do the analyses as well as the quality of the conclusions coming out of available in your company data. There is little theory – mainly examples, a lot of tips from my own experience as well as other notable examples worth mentioning. Our intention is that thanks to the course you will know:

  • What is the difference between business models and financial models?
  • How to model cost positions and balance sheet position?
  • How to create on the basis of this financial statements: profit and loss statement, balance sheet statement and cash flow statements
  • How to make sure that there is integrity in the model?
  • What analyses and conclusions you can draw from the financial model?

You can also ask me any question either through the discussion mode or by messaging me directly.

 

How the course is organized?

The course is divided currently in 10 sections and will be adding new section to address other important issues. Currently you will find the following sections:

  • Introduction. We begin with little intro into the course
  • Modeling of Profit & Loss account. In this section we start by showing how to model cost positions (except for Depreciation)and how to create on the basis of this a profit & loss statement
  • Capex and Depreciation.  Capex and Depreciation are one of the most difficult elements that you will model in Excel. Therefore, we have created a separate section devoted just to this subject . In this section you will learn how to follow specific group of assets, truck their gross and net value and calculate depreciation.
  • Working Capital. Working capital is crucial to the business as it defines how much money you have to have engaged in the business. I will show you how to model specific positions of Working Capital
  • Debt.  You may need external sources of financing for the company. I will show you how to model loans and get the necessary info to create balance sheet later.
  • Equity. In this section I will show you how to model the equity and all relations with shareholders
  • Balance sheet modeling. Here we get everything together to model the balance sheet statement.
  • Cash flow modeling.  Here we get everything together to model the cash flow statement.  Here we will check integrity of the model as well.
  • Analyses of the Financial Model.  At the end, on the basis of ready model I will try to draw the conclusions that will show us whether the business we have been analyzing is interesting or not

 

 

You will be able also to download many additional resources

  • Excels with analyses shown in the course
  • Links to additional presentations and movies
  • Links to books worth reading

 

At the end of my course, students will be able to…

  • You will master financial modeling in Excel at the needed for business analyst and consultant level
  • Understand the main challenges in financial modelling
  • Perform the analyses of financial model
  • You will get ready model that you can utilize for your purposes

Who should take this course? Who should not?

  • Business analysts
  • Researchers
  • Controllers
  • Consultants
  • Small and medium business owners
  • Startups founders

 

What will students need to know or do before starting this course?

  • Basic Excel
  • Basic knowledge of economics or finance

 

 

 

Who this course is for:
  • Business analysts
  • Researchers
  • Controllers
  • Consultants
  • Small and medium business owners
Course content
Expand all 72 lectures 03:37:45
+ Introduction
14 lectures 35:51

Here I will explain you what the course will be about and how you can make the best out of it.

Preview 02:34

Here I will talk a little bit about me and my company

Preview 01:47

Here I will explain what to do if the image becomes blurry

What to do if a blurry image appears
02:04

Here I will explain how to find additional resources

How to find additional resources
01:05

Here I will show you how you can benefit to the fullest extent from this course

How to make the most of the course
02:50

As a business analysts or a consultant you will have to from time to time create financial models. There are a bit different than business models. In business models you go into details of operations and you focus on getting the links on the KPIs. Those models are usually done for internal purposes, to manage in the right direction the business. Financial models on the other hand are more for external users. You concentrate in them on creating the picture of the business in a standardized, understood by everybody way. You also want to create the financial statements: profit & loss statement, balance sheet statement, cash flow statement

Preview 02:38

I assume that you have sufficient knowledge of finance and accounting but just in case I also attach a presentation that will cover this topic extensivelly

Essential Finance & Accounting
00:52

In the whole course to model most of the cost position we will extensively use bottom-up approach. Understanding the approach will help you be great at financial modeling

We will have a few lectures on bottom-up approach. You can skip the if you want and move on to the building the financial model

  • What is a bottom-up approach

  • Estimate wedding cost using bottom-up approach

Our approach to modelling
00:52

In this lecture you will get to know our favorite method for first rough estimation – the bottom-up method. We give you also 2 examples with Excel calculation how to use it.

Bottom-up approach
07:53

Imagine that you have to estimate the costs of the wedding to help Tomasz plan his wedding. Use for that the bottom-up approach. We will use this case study to see how bottom-up approach works in practice

Estimating the costs of a wedding – Introduction
01:10

In this lecture I will show you the solution to previously introduced case study

Estimating the costs of a wedding – Partial Solution
05:09

In this lecture I will show you the solution to previously introduced case study

Estimating the costs of a wedding – Excel Part 1
02:38

In this lecture I will show you the solution to previously introduced case study

Estimating the costs of a wedding – Excel Part 2
02:58

In the first few sections we will cover an interesting model of a producer of hand-made clay products. Here I will briefly introduce this case study

Case Introduction
01:21
+ Modeling of Profit & Loss Account
7 lectures 17:02

We start by showing how we will get from cost position to profit & loss statemen

Preview 00:30

Sales are driving the whole financial model. Therefore, we start from sales and show you how to model it.

Preview 04:24

In terms of cost quite often materials and energy are the main cost position. We will show you how to model it.

Preview 02:36

You will be buying a lot of services from third parties. Some companies have a lot of contractors instead of workers. We will show you how to model it in this lecture

External services
02:09

I will show you in this lecture how to model Taxes & Payments

Taxes & Payments
00:56

Salaries and wages are very important in any business. I will show you how to model it taking into account base salaries, FTE (full time equivalents) and assumed growth in salaries and wages

Payroll
04:28

I will show you in this lecture how to model Other Costs

Other Costs
01:59
+ Capex and Depreciation
4 lectures 11:27

Capex and Depreciation are one of the most difficult elements that you will model in Excel. Therefore, we have created a separate section devoted just to this subject . In this section you will learn how to follow specific group of assets, truck their gross and net value and calculate depreciation.

Preview 03:29

I will show you in this lecture how to model Intangibles especially I will show you in this lecture how to

Intangibles - modeling of gross value, net value and depreciation
04:47

I will show you in this lecture how to model Machinery especially I will show you in this lecture how to

Machinery - modeling of gross value, net value and depreciation
01:51

At the end we add the depreciation to P&L

Adding depreciation to the P&L
01:20
+ Working Capital
5 lectures 14:54

Working capital is crucial to the business as it defines how much money you have to have engaged in the business. I will show you how to model specific positions of Working Capital

Preview 03:03

I will show you in this lecture how to model inventory of materials, WIP and finished goods

Inventory of materials, WIP and finished goods
03:13

I will show you in this lecture how to model receivables

Receivables
03:22

I will show you in this lecture how to model liabilities

Liabilities
04:03

I will show you in this lecture how to model Corporate tax and final working capital estimation

Corporate tax and final working capital estimation
01:13
+ Debt
4 lectures 11:20

You may need external sources of financing for the company. I will show you how to model loans and get the necessary info to create balance sheet later.

Introduction to debt modeling
01:00

I will show you in this lecture how to model old loans

Old loans
03:04

I will show you in this lecture how to model new loan

New loan
03:55

I will show you in this lecture how to model interest paid and interest earned

Interest paid and interest earned
03:21
+ Equity
2 lectures 04:18

In this section I will show you how to model the equity and all relations with shareholders

Introduction to Equity
01:07

I will show you in this lecture how to model Equity

Equity modeling
03:11
+ Balance sheet modeling
6 lectures 11:37

I will show you in this lecture how to model balance sheet

Preview 01:53

I will show you in this lecture how to model fixed assets

Fixed assets
02:32

I will show you in this lecture how to model current assets

Current Assets
02:10

I will show you in this lecture how to model own capital

Own capital
01:09

I will show you in this lecture how to model current liabilities

Current liabilities
02:27

In this lecture we summarize the balance sheet and check the integrity of the model 

Balance sheet - summary
01:26
+ Cash flow modeling
6 lectures 12:43

Here we get everything together to model the cash flow statement.  Here we will check integrity of the model as well

Preview 03:32

I will show you in this lecture how to model operational cash flows

Operational cash flows
02:30

I will show you in this lecture how to model investment cash flows

Investment cash flows
00:55

I will show you in this lecture how to model cash flow from financial activities

Cash flow from financial activities
01:46

I will show you in this lecture how to model shareholders influence on Cash Flow

Shareholders influence on Cash Flow
01:02

I will show you in this lecture how to model Final Cash Flow

Final Cash Flow
02:58
+ Analyses of the Financial Model
6 lectures 13:16

 At the end, on the basis of ready model I will try to draw the conclusions that will show us whether the business we have been analyzing is interesting or not

Preview 01:59

I will show you in this lecture how to model Profit & Loss analyses

Profit & Loss analyses
03:15

I will show you in this lecture how to model Cash Flow analyses

Cash Flow analyses
03:11

In this section I will show you where you can look for improvements on the basis of financial model

Possible improvements to be further analysed
01:47

In the first part of the course we have estimated sales using: sales from previous year, assumed change in price and assumed change in quantity. There is an alternative way to achieve this effect and we will discuss it in this lecture

Alternative wasy to model Sales
01:39

In the first part of the course we have estimated variable costs using: sales from previous year, assumed change in cost and other additional one-offs. There is an alternative way to achieve this effect and we will discuss it in this lecture

Alternative wasy to model Variable Costs
01:25
+ Valuation
8 lectures 21:48

In this section I will show you how to do the valuation of the company that we have created the financial model for. We will use the 2 set of methods DCF and multipliers

Introduction to Valuation
02:16

In this lecture I will show you the basic assumptions behind the DCF methods

Introduction to DCF method
02:25

There are 2 main DCF methods: FCFF and FCFE. Here I will show you the difference between them before we go into details

Difference between FCFF and FCFE
02:13

In this lecture we will apply the DCF using FCFF model to the financial model we have created

DCF method of valuation applied to FCFF
03:42

In this lecture we will apply the DCF using FCFE model to the financial model we have created

DCF method of valuation applied to FCFE
01:59

Now we move on to mutliplier methods of valuation

Introduction to using multipliers for valuation
02:56

We will start with the EBIT and EBITDA multipliers

Enterprise to EBIT or EBITDA
04:08

In this lecture I will use the P/E to do the valuation

Price per Earning multiplier
02:09