Financial Strategy: Essential Finance Management Skills

Introduction

This seminar aims to provide an understanding of the fundamentals of corporate finance, and financial strategy during the life cycle of a business. Contemporary practical examples are presented together with the theoretical principles to make the theory come to life. The overriding objective of this seminar is to present a number of integrated and powerful principles to help develop analytical skills and the decision-making capacity of the participants.

It will enable you to:

• Appreciate the importance of using the appropriate financial strategy to create shareholder value above market expectations
• Consider how corporate behaviour impacts on achievement of corporate objectives, and the importance of corporate governance
• Understand financial strategy relating to stages of corporate development and capital structure
• Use and evaluate the various techniques of capital investment appraisal
• Develop appropriate strategies with regard to mergers, acquisitions and reorganisations, and defences against hostile takeovers
• Effectively manage cash and working capital to reduce costs and improve cash flow

Who Should Attend?

Whether your career is in accounting and finance, or in other areas of management, an understanding of corporate objectives, and an insight into how corporate finance and financial strategy impact on these is a very important part of your management development. This seminar is for non-financial and financial professionals at every level. It is not a highly technical seminar and is presented with worked examples and case studies, and in terms that make the topics easy to understand. This seminar provides a user-friendly environment to develop knowledge of corporate finance and financial strategy. The benefits of this seminar may be gained by anyone employed within the above roles in any organisation.

Organisational Impact

At the end of the seminar participants will be able to assess and contribute to the development of the financial strategy of the organisation, and identify and implement appropriate measures that can add value to the organisation, through being able to:

• Appreciate the importance of selecting the appropriate financial strategy to maximise shareholder value
• Understand the agency problem as an obstacle to achieving corporate objectives and the importance of corporate governance
• Consider risk and its impact on company financing
• Evaluate the cost of equity and the cost of debt capital
• Look at capital structure and financial strategy in terms of the life cycle of the business, and the weighted average cost of capital (WACC)
• Use Excel© models and the appropriate tools and techniques in support of strategic capital investment decisions and capital budgeting
• Consider the appropriate financial strategies for use in mergers, acquisitions, restructuring and reorganisations, and appropriate takeover bid defences
• Use the financial tools available for effective management of working capital and to help the company improve the all-important cash flow
• Provide knowledge that can be shared amongst other departments of the company

Personal Impact

Participants will be able to further develop their personal management skills by being able to:

• Make more informed and improved management decisions
• Consider why corporate objectives may not always be achieved and what may be done to eliminate dysfunctional corporate behaviour and align corporate goals
• Understand how to measure their own contribution to the creation of value for the shareholders of the business
• Appreciate why some financial strategies are more effective than others with regard to value creation

Competencies Emphasized

Participants will be able to:

• Understand agency theory and corporate governance
• Evaluate cost of equity and cost of debt
• Analyse risk and uncertainty with regard to company financing
• Consider corporate development in terms of the business life cycle
• Determine the appropriate capital structure and dividend policy with regard to the life cycle
• Evaluate capital investment projects using DCF and other appraisal methods
• Use the methods of capital budgeting
• Develop appropriate financial strategies in mergers, acquisitions and reorganisations
• Identify methods of financing M&As
• Use alternative methods of business valuation
• Consider the appropriate defences against hostile takeover bids
• Manage working capital more effectively, and identify how the company cash flow may be improved

Training Methodology

This seminar is largely discursive and is presented in terms that make the topics easy to understand. It provides the theoretical background and techniques that underpin corporate finance and the development of appropriate financial strategies. Worked examples, case studies, and Excel© models are used to put all this into a practical context so that delegates will see how theory applies in practice and can discuss the various issues raised.

Seminar Outline

Day 1: Financial Strategy and Corporate Behaviour

• Corporate Objectives and Financial Strategy
• Risk and Company Financing
• Cost of Equity and Debt Capital
• Agency Theory and Corporate Governance

Day 2: Financial Strategy and Stages of Corporate Development

• Strategic Development – Analytical Techniques
• The Business Life Cycle
• Capital Structure and Weighted Average Cost of Capital (WACC)
• Dividend Policy

Day 3: Capital Investment Decisions

• Discounted Cash Flow (DCF)
• Evaluating Capital Investment Projects
• Comparison of Alternative Methods of Investment Appraisal
• Capital Budgeting

Day 4: Restructuring, Reorganisations, Mergers and Acquisitions

• Reasons and Justifications for Mergers and Acquisitions
• Share Valuation Models and Financing Acquisitions
• Financial Strategy in Acquisitions and Takeover Bid Defences
• Business Restructuring and Reorganisations

Day 5: Cash Planning and Working Capital Management

• Cash Flow, Working Capital and the Operating Cycle
• Managing Working Capital
• Cash Improvement
• Cash Planning and Cash Management

Oxford Management Centre
John Eccles House
Robert Robinson Ave
Oxford Science Park
Oxford
OX4 4GP
United Kingdom

Tel: +44 1865 338088

Fax: +44 1865 338100

email info@oxford-management.com