FINANCE FOR NON-FINANCIAL PROFESSIONALS

Finance pour non-financiers

Regardless of your field of activity and regardless of the position you hold, you are or will sooner or later be faced with the need to understand your interlocutors who will handle terms such as EBE, EBITDA, leverage, break-even point, net margin, operating result, not to mention the numerous acronyms heard here and there that may leave you puzzled.

 

In any case, it is essential to understand the driving forces behind a company's development which, if it "doesn't make money", is doomed to fail. But what does this frequently heard expression mean?

 

If the "finance for non-financials" training, sometimes called "financial logic of the company", is one of the most requested, it is precisely because it has become necessary to have a (even) basic understanding of the financial levers of the company, to know how to read accounting documents and other dashboards communicated by your superiors or work colleagues. This is a basic financial analysis training that will give you the necessary tools to assess the health of a company.

Objectifs

  • Understand the company's ecosystem
  • Know the different accounting documents (balance sheet, income statement, and cash flow statement)
  • Know how to analyze them to assess the company's financial health
  • Acquire the tools to measure the company's performance
  • Acquire financial culture and jargon
  • Concretely grasp the different moments in the life of the company
  • Know how to evaluate an investment project and the company itself.

Public

Tous publics

Durée

2 jours (14 heures)

ice

  • 1650 euros  excluding VAT for 1 single participant
  • 1300 euros excluding VAT per participant for a group of 2 or 3 participants *
  • 1050 euros excluding VAT per participant for a group of more than 3 participants *

Programme

I- Definition, Characteristics, and the Private Equity Ecosystem - Definition and key features of private equity - Private equity vs. stock market - The role and expense of raising capital: equity cost vs. debt cost - Leverage - Minority vs. majority ownership - Active vs. passive involvement (hands-on vs. hands-off) II- The Private Equity Ecosystem - Start-ups, growth companies, established companies - Classification of participants - Management firm vs. fund - FCP (Joint Investment Fund) vs. SCR (Venture Capital Company) - LP (Limited Partners) and GP (General Partners) - Venture capital funds - Growth capital funds - LBO (Leveraged Buyout) funds - A day in the life of an investment manager Applications: CASE STUDY: "Analysis of a French venture capital fund prospectus." III- The Private Equity Investment Process 1. The Pre-Investment Phase: - Business plan analysis - Meeting the management - Operational review - Financial audit - Financial package proposal - Valuation 2. Investment Phase: - Valuation methods - The multiples approach - Conventional financial restatements - Discounted cash flow approach: IRR and the selection of a discount rate - The financial package: equity, convertible bonds, obsa (bonds with equity warrants), absa (bonds redeemable in shares) - Shareholder agreements and key clauses 3. The Post-Investment Phase: - Monitoring the investment - Shareholder meetings - Board meetings - Exits strategies - Handling "breaks" or probabilistic thinking - Different exit routes: trade sale, IPO Applications: CASE STUDY: "Examination of real-world cases: hits and misses." IV- Performance Measurement Indicators for Venture Capital Funds 1. The Life Cycle of a Venture Capital Fund: - J-curve - Capital calls - Managing cash drag 2. LP and GP Relationships: - "Clawback" clause - Distribution patterns - "No fault divorce" clause 3. Compensation Structures in a Venture Capital Fund: - Carried interests - Management fees - Transaction charges - Oversight fees - Compensation adjustment mechanisms: - Ratchets - Hurdle rates Applications: CASE STUDY: "Calculation of carried interest." 4. Key Performance Indicators for Private Equity Funds: - Net asset value - Invested capital - Committed capital - PIC (Paid-In Capital) and its multiple: PIC/committed capital - Return on invested capital metrics - DPI (Distributed to Paid-In) Unrealized gains performance metric: - RVPI (Residual Value to Paid-In) Applications: CASE STUDY: "Analyzing the performance indicators of a private equity fund."