Become a Competent Financial Analyst
The New York Institute of Investment Banking offers 12-week courses which teach students everything that a first year financial analyst would be expected to know including financial modeling, valuation, mergers and acquisitions and leveraged buyouts (LBOs).
Manhattan Course Dates
Spring 2019 January 28 through April 26
Summer 2019 June 03 through August 02
Fall 2019 September 09 through December 06
Accounting, finance and excel skills are reviewed at the beginning of the course to ensure students have the basic skills they need to understand more advanced financial modeling. Students will learn how to build an operating model using the company’s income statement, statement of cash flows and balance sheet reinforced by the supporting schedules including the working capital schedule, depreciation schedule and debt schedule. Analysis of the historical data, political climate and economic environment will be performed to develop forecasts of future financial data completing the operating model.
After the operating model is built, students will analyze the model to determine the company’s value using discounted cash flow analysis, comparable company analysis and precedent transaction analysis. Students will learn how to use a sensitivity table to experiment with different scenarios to determine a range of valuations. Valuations will be compiled on a football field graph to find the ranges which the output of the different methods overlap. Students will be encouraged to share their opinion regarding the value of the company and will learn to defend their position through debate.
Mergers and Acquisitions Analysis
The mergers and acquisitions module focuses on analyzing the effect of combining two companies' operating models and performing an accretion/ dilution analysis to determine the effect on the combined entity's earnings per share. Students will learn how to estimate synergies, amortize intangible assets and adjust for new shares issued. A case study analyzing Amazon’s acquisition of Whole Foods will require students to model the acquisition and explain their conclusions about the benefits of the transaction.
Leveraged Buyout (LBO) Analysis
The last part of the course focuses on Leveraged Buyouts which are acquisitions made using a large amount of debt and where cash flows from the business are used to pay down the debt before the investor exits in the final year of the investment. The internal rate of return (IRR) is calculated to determine if the transaction is profitable enough to be undertaken. Students will model Silver Lake Management’s leveraged buyout of Dell Computers and calculate the transaction’s IRR for the case study.