Day 1: Strategic Financial Modeling and Alignment
Aligning strategic objectives with financial plans
A. Translating corporate vision into measurable financial targets
B. Mapping strategic initiatives to operational budgets and cash flows
C. Establishing baseline metrics and performance benchmarks
Building integrated financial models
A. Linking income statements, balance sheets, and cash flow statements
B. Incorporating macroeconomic and industry-specific assumptions
C. Implementing error checks and balancing mechanisms
Evaluating strategic financial health
A. Analyzing historical financial performance and trend variances
B. Identifying key value drivers and potential financial bottlenecks
C. Preparing initial diagnostic reports for executive review
Day 2: Investment and Divestment Evaluation
Assessing investment opportunities
A. Calculating Net Present Value (NPV) and Internal Rate of Return (IRR)
B. Determining payback periods and discounted payback metrics
C. Comparing projects with different scales, lives, and risk profiles
Evaluating divestment options
A. Identifying underperforming assets and non-core business units
B. Analyzing the financial and strategic impact of divestiture
C. Structuring the divestment process to maximize value recovery
Scenario and sensitivity analysis
A. Defining base, upside, and downside case assumptions
B. Building data tables to show the impact of single and dual variable changes
C. Interpreting sensitivity results to inform risk management
Day 3: Capital Allocation and Funding Strategies
Designing capital allocation frameworks
A. Aligning funding plans with corporate priorities and balance-sheet constraints
B. Evaluating debt, equity, and hybrid financing options
C. Prioritizing the investment portfolio based on strategic fit and risk-adjusted returns
Managing the cost of capital
A. Estimating the cost of equity using CAPM and beta adjustments
B. Determining the cost of debt and preferred equity
C. Calculating the Weighted Average Cost of Capital (WACC)
Optimizing capital structure
A. Analyzing historical and projected leverage ratios
B. Evaluating cash flow coverage ratios and debt capacity
C. Determining optimal debt levels based on industry benchmarks
Day 4: Rolling Forecasts and Stress Testing
Implementing rolling forecasts
A. Transitioning from static annual budgets to dynamic rolling forecasts
B. Setting the forecast horizon and update frequency
C. Automating data feeds from actuals to the forecast model
Designing stress tests
A. Applying severe but plausible shocks to key assumptions
B. Assessing the impact on liquidity, debt covenants, and capital requirements
C. Developing contingency plans and trigger points for corrective action
Risk mitigation strategies
A. Identifying critical thresholds and trigger points
B. Structuring financial hedges to mitigate market and currency risks
C. Documenting stress test results for risk management and reporting
Day 5: Board Reporting and KPI Integration
Designing decision-focused deliverables
A. Structuring executive memos for clarity and impact
B. Creating concise, visual dashboards for financial metrics
C. Tailoring the narrative to the specific audience (board, lenders, investors)
Integrating KPIs with strategic outcomes
A. Selecting a balanced mix of financial and non-financial KPIs
B. Linking incentive structures to strategic KPIs
C. Establishing a standardized reporting calendar and distribution process
Final review and presentation
A. Conducting a peer review of the financial strategy and models
B. Preparing a 10-minute executive presentation of the findings
C. Practicing the defense of key assumptions and strategic conclusions
