Finance for Lawyers
This intensive course is designed to provide legal professionals with a better understanding of the language and meaning of financial terminology and its relevance to real world economic activity.
A highly practical and interactive course, combining Business and Financial Analysis to enhance your knowledge and familiarity of the overall concepts and language used in financial analysis, credit transactions and other banking and corporate finance activities.
Using case studies, lectures and practical group exercises, you will develop a hands-on understanding of the world of finance that enables more effective working relationships with banking and finance professionals
· Develop your Modern Financial Analysis Skills
· Understand the Accounting Statements like P&L and Balance Sheet
· Understand Cash Flow Analysis, Accounting Issues and Project Analysis
· Acquire the financial Analysis Techniques and Ratio Analysis
· Explain the Financial and Business Risk
· Learn the techniques of corporate assessment
Introduction to Financial Analysis
· Identifying the relationship between cash flow and profit
· Development of an integrated cash flow model
· Recognizing it’s all about cash
· Understanding the relationships between the 3 main accounting statements.
Fundamentals of Accounting Statements – The Profit & Loss Account
· How the P&L has changed over the last 25 years
· Detailed review of the Profit and Loss Account
· Profit types – trading, asset and business
· Inventory, Depreciation, Capitalized interest
· Minority interests and consolidation
· Exceptional and material items
Fundamentals of Accounting Statements – The Balance Sheet
· Detailed review of the Balance Sheet
· Understanding the fixed assets note
· Accounting goodwill – what is it?
· Liabilities, pension fund accounting
· Debt and other liabilities like debt
· Deferred tax, contingent liabilities
Understanding Cash Flows
· Detailed review of the Cash Flow Statement
· Analyzing and interpreting cash flows
· Summarizing cash flows for analysis
· Cash Flow Analysis
Defining free cash flow
Financial Analysis Techniques – Ratio Analysis
· Objectives of ratio analysis
· Developing ratio analysis skills
· Understanding the classic ratios
· How much information is there in ratios?
· Ratio rules – avoiding errors of principle
Evaluating Capital Investment Projects
· Introduction to capital budgeting
· Discounted cash flow techniques
· Calculating the internal rate of return
Economic and Country Risk
· Understanding the indicators & signals
· Implications of macro-economic change for Investors, Banks and Businesses
· Funding Structures
· The relationship between business risk & financial risk
· The four phases of the corporate life-cycle
· Identifying appropriate funding structures
· Recognizing the drivers of funding strategies
Credit Analysis – The Basic Concepts
· Introducing credit analysis frameworks
· Financial analysis – review of the issues
· Non-financial analysis – Developing a framework
Overview of Non-Financial Analysis
· Strategy analysis – what is strategy/business risk?
· Overview of strategy terminology and concepts.
Techniques for Corporate Assessment
· SWOT/Environmental analysis
· Porters five forces
· Boston portfolio matrix
· Environments matrix
The course is ideal for lawyers and others who need to be familiar with the overall concepts and language used in financial analysis, credit transactions and other banking and corporate finance activities.