Course Description

This course provides a 360 degree perspective on Business Finance to professionals who may not necessarily have a Finance background. Having a fundamental view of how financial statements of companies are created, how to analyze them to assess company performance and how to estimate the business valuation of a company can be very useful to business executives to tie up their team efforts to the overall business performance of the company.

In this course, we delve into 3 main aspects/modules of Business Finance:

1. Financial Accounting
2. Financial Performance Analysis
3. Business Valuation

In the first module, we look at the key financial statements any business is required to prepare. We then go on to see how different types of business transactions are recorded in the accounting statements of any company. This a real fun module where you see the different financial statements are all integrated with one another in the practical world.

In the second module, we use a scorecard framework to analyze how to assess and evaluate the business performance of any company. We compare 4 different companies to define the best performing company among them. We break down company performance in two broad buckets - operating and financing. We then show you how to calculate some key metrics for both these parameters individually. Finally, we rank companies on each of the different metrics to find the winner.

Finally, in the 3rd module, we look at the different life-cycle stages of a company and how to value any company in each of these company stages. We look at 3 different business valuation approaches - negotiation approach, multiples approach and discounted cash flows based approach. To make it real, we add some numbers to each of the methodology to show you how you can do it yourself.

This course is for professionals within the following business functions:

• Non-finance executives
• Business Managers
• Entrepreneurs
• Founders
• Sales Executives
• Operations Executives
• Finance Executives
• CEOs
• CFOs
• Students

1. Course overview - 5 Minutes

   1. Meet your instructor
   2. What will you learn in this course?

2. Module 1: Financial Accounting Fundamentals - 37 Minutes

   1. What will we learn in this module?
   2. What is Accounting?
   3. Why do we need to do Accounting?
   4. Typical Income Statement
   5. Typical Balance Sheet
   6. Illustration for this module
   7. Transaction 1
   8. Transaction 2
   9. Transaction 3
   10. Transaction 4
   11. Transaction 5
   12. Transaction 6
   13. Transaction 7
   14. Transaction 8
   15. Transaction 9
   16. Transaction 10
   17. End of module 1: Quick recap
   18. Please provide us your feedback

3. Module 2: Financial Performance Analysis - 40 Minutes

   1. What will we learn in this module?
   2. What is Financial Performance Analysis?
   3. How to measure company performance?
   4. What are the parameters to measure performance?
   5. Operating performance metric - Margins
   6. Operating performance metric - ROIC
   7. Operating performance metric - Turnover
   8. Operating performance metric - Growth
   9. Financing performance metric - Leverage
   10. Financing performance metric - Leverage
   11. Financing performance metric - Liquidity
   12. Financing performance metric - Liquidity
   13. Quick recap of the module thus far
   14. Illustration for this module
   15. What is an Annual Report?
   16. Financial statements for Alpha
   17. Calculating profitability margins for Alpha
   18. Calculating ROIC for Alpha
   19. Calculating turnover ratio for Alpha
   20. Calculating growth metric for Alpha
   21. Calculating leverage ratio #1 for Alpha
   22. Calculating leverage ratio #2 for Alpha
   23. Calculating current ratio for Alpha
   24. Calculating coverage ratio for Alpha
   25. Quick recap of the calculation of metrics
   26. Calculating operating metrics for all companies
   27. Calculating financing metrics for all companies
   28. Calculating ranking criteria for companies
   29. Ranking profitability margins across companies
   30. Ranking ROIC metric across companies
   31. Ranking of turnover metric across companies
   32. Ranking of growth metric across companies
   33. Ranking of leverage metric across companies
   34. Ranking of leverage metric #2 across companies
   35. Ranking of current ratio across companies
   36. Ranking of coverage ratio across companies
   37. Choosing the best performing company
   38. End of module 2: Quick recap
   39. Please provide us your feedback on the course thus far

4. Module 3: Business Valuation Fundamentals - 35 Minutes

   1. What will we learn in this module?
   2. What is valuation?
   3. Valuation approach depends on the life-stage of the company
   4. Early stage company valuation
   5. Illustration: Early stage company valuation
   6. Illustration: Early stage company valuation (contd.)
   7. Growth stage company valuation approach
   8. What is a Sales valuation multiple?
   9. Illustration: Growth stage company valuation
   10. Illustration: Growth stage company valuation (contd.)
   11. Mature stage company valuation approach
   12. What is Earnings valuation multiple?
   13. Illustration: Mature stage company valuation
   14. Illustration: Mature stage company valuation (contd.)
   15. Discounted Cash Flows approach to valuation
   16. Illustration: Discounted cash flows valuation approach
   17. Understanding Free Cash Flows to Firm
   18. Free Cash Flows (FCF) are calculated for future
   19. Timing mismatch in FCF
   20. Finding the Present Value of FCF
   21. Discounting future cash flows to present value
   22. Generalization formula for discounting future cash flows
   23. Discounting the future cash flows in our illustration
   24. Quick recap of the DCF approach to valuation
   25. Quick recap of negotiation based valuation approach
   26. Quick recap of Sales multiples based valuation approach
   27. Quick recap of Earnings multiples based valuation approach
   28. Quick recap of DCF valuation approach
   29. End of module 3: Quick recap
   30. Please provide us your feedback