M&A: Free Cash Flow (FCF) Modeling

edX M&A: Free Cash Flow (FCF) Modeling

Platform
EdX
Provider
New York Institute of Finance
Effort
1 to 2 hours per week
Length
4 weeks
Language
English
Cost
$300
Part of
Course Link
Overview
One of the primary functions of a broker-dealer’s M&A desk is advisory services – consulting clients as they seek to grow through M&A.

In this course, you will learn to use the Free Cash Flow metric to evaluate acquisition opportunities. You will learn about the components of Free Cash Flow and its relationship with market value. You will also learn about the process of capital budgeting and guidelines to follow.

This course is part of the New York Institute of Finance’s popular Mergers & Acquisitions Professional Certificate program.

What you'll learn
  • Identify Free Cash Flow from Accounting Data
  • Recognize how to compare Free Cash Flow to Net Income
  • Recognize the Drivers of Free Cash Flow
  • Identify the steps to calculate Cost of Capital
  • Identify the steps to use Free Cash Flow for Capital Budgeting Decisions
  • Recognize the relationship between Free Cash Flow and Economic Value Added Value Acquisitions using Free Cash Flow
  • Recognize how to develop a Free Cash Flow approach to Incentive Compensation
Syllabus
Session 1: Introduction to Free Cash Flow and the Objective of the Firm
  • Lesson 1: Need for Free Cash Flow
  • Lesson 2: Understanding Free Cash Flow
  • Lesson 3: Relationship between Free Cash Flow and Market Value
  • Lesson 4: Return on Investment
  • Lesson 5: Adjusting Accounting Data to Get to Free Cash Flow
  • Lesson 6: Components of Free Cash Flow
  • Lesson 7: Show Me
  • Lesson 8: Adjustments to Net Investment
  • Class Exercise
Session 2: Components of Free Cash Flow
  • Lesson 1: Focus on Free Cash Flow
  • Lesson 2: Understanding the Components of Free Cash Flow
Session 3: Cost of Capital
  • Lesson 1: Understanding Cost of Capital
  • Lesson 2: CAPM & WACC
  • Class Exercise
Session 4: Capital Budgeting Using Free Cash Flow
  • Lesson 1: Capital Budgeting: Overview
  • Lesson 2: Guidelines for Capital Budgeting
  • Lesson 3: Q&A
  • Lesson 4: Caveats
Session 5: Modified Free Cash Flow
  • Free Cash Flow and Interim Financial Results
Session 6: Using Free Cash Flow to Evaluate Acquisition Opportunities
  • Lesson 1: Overview
  • Lesson 2: Acquisition Analysis
  • Lesson 3: Objective to add Shareholder Value
  • Lesson 4: Synergies and Integration Costs
  • Lesson 5: Q&A
  • Lesson 6: Other Metrics
  • Class Exercise
  • Lesson 7: Incentive Compensation
Session 7: Integration of Acquisitions
  • Lesson 1: Integration Best Practices
  • Lesson 2: Integration Planning
Session 8: Implementation Issues

Taught by
Steve Literati

[parsehtml]<a class="button" style="height: 100%; padding:14px 14px 14px 14px !important; color: white; font-size: 18px; font-weight: bold; margin-bottom: 10px;" href="https://www.edx.org/course/ma-free-cash-flow-fcf-modeling-new-york-institute-finance-ma1-4x"target="_blank">Go To Course</a>[/parsehtml]
Author
edX
Views
797
First release
Last update
Rating
0.00 star(s) 0 ratings
Top