Finance For Lawyers
Course Background
The growing complexities of international commercial transactions have led to a strong demand for a law professional that not only has a strong legal understanding but also the commercial and the financial acumen to meet client requirements. In any transaction it is very important for all those involved in the transaction to have a basic understanding of valuation, cash flows and the time value of money.
The finance for lawyers course is designed to enhance the financial acumen and analytical skills of lawyers practicing in the areas such as capital markets , M&A transactions , corporate transactions and other related practices. This program focuses on intuitive appreciation of the fundamental concepts of accounting and finance and the ability to understand how these concepts are useful for decision making.
By the end of the course, participants will gain a thorough understanding of basic financial and accounting concepts which will help them in better comprehension of the commercial and financial aspects of a transaction
Course Objective
- Thorough understanding of financial statements and common finance vocabulary
- Importance of cash flow and how to relate it to the balance sheet
- Evaluate capital projects and calculate NPV and IRR
- Understand the rationale behind different capital structures
- Importance of leverage and its impact on earnings and earnings related ratios
- Valuing target company, evaluating bid and understanding reasons for different mode of payments in a Merger and Acquisition transaction
- Examine and learn the tools of financial analysis
- Importance of various derivative products and how they are used by corporations to transform risk
- Investigate how a company’s financial position drives financing decisions
- Importance of monetary and fiscal policies and their impact on inflation, exchange rates and interest rates
Daywise Schedule
Day 1: Financial Statement Analysis
- Introduction to financial Statement Analysis
- Income Statement
- Balance Sheet(B/S)
Day 2: Financial Statement Analysis
- Details of Balance Sheet(B/S)
- Cash Flow Statement
- Inventory Valuation
- Long Term Assets
- Income Taxes
- Operating and Capital Lease
Day 3: Financial Statement Analysis
- Ratio Analysis
- Integrating All Statements
- Qualitative Factors in FSA
- Ratios(Game)
- Financial Abuses
Day 4: Financial Statement Analysis
- Introduction to IFRS
- Convergence of GAAP towards IFRS
- Details of Financial Abuses
- Case Study & Analysis
Day 5: Corporate Finance
- Capital Budgeting
- Time Value of Money
- NPV, IRR and Project Evaluation
- Capital structure and leverages
- Valuation of Debt Instruments
- Duration/Convexity
- Impact of options on Bond Price
- Case Study & Analysis
Day 6: Equity Valuation
- Introduction to Security Valuation
- Industry Analysis: Porters Five Force Model
- Company Analysis and Stock Valuation
- Valuation Models
- Case Study & Analysis
Day 7: Private Equity
- Introduction to Private Equity
- Value Creation by Private Equity Firms
- Investment Process for Private Equity
- Valuation Issues in PE Deals
- Term Sheet Analysis
- Introduction to LBOs
- Case Study & Analysis
Day 8: Corporate Finance
- Dividend Policy
- Corporate Restructuring
- Merger and Acquisition
- Case Study & Analysis
Day 9: Derivatives
- Derivative Markets and Instruments
- Forward and Future
- Swaps and Interest Rate Derivatives
- Introduction to options
- Derivatives Games
