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Essential Finance for Law Practitioners #5

 
Course Overview :
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. The course is specially designed for law practitioners to enhance their 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 in-depth full structural layout teaching of accounting and finance with follow up legal activity case studies in each section for delegates to work on to help them fully understand the topics. Our trainer will present full illustrations of various financial models and analysis in some cases using well know international companies as examples.
 
 
Facilitator Introduction :
David H Hazell
FBS CONSULTANCY,
David Hazell has over 35 years involved in Finance & accountancy and over 20 years coaching experience. His clients include International Power Authority, The Chartered Management Institute, Arts Council, BPP Professional Education, Association of Chartered Certified Accountants. He is a Fellow of the Association of Chartered Certified Accountants and holds a Masters Degree in Business Administration from Heriot-Watt University (Edinburgh Business School);he is also a member of the Chartered Institute of Personnel and Development and the Chartered Management Institute.
He has operated in both the public and the private sectors and has also lectured in Financial Management and Accountancy and General Management Theory and Practice. He is currently an Associate Lecturer with BPP Professional Education where he teaches finance and accountancy for the Professional Examinations of the Accountancy Bodies.
 
 
 
Benefits of Attending :
Ø  Increase your knowledge and understanding of foundational finance, accounting and common finance vocabulary and principles
Ø  Improve your ability to “navigate” and understand the basic financial statements - the balance sheet, profit and loss accounts, cash flow statement and statement of owners’ equity
Ø  Learn the rationale behind different capital structures  and corporate finance concepts, including financial ratios and analysis
Ø  Identify the law practitioner’s role in preventing accounting abuses and potential frauds
Ø  Use of discounted cash flow and L/S term project management
Ø  Evaluate capital projects and calculate NPV and IRR
Ø  Valuing target company, evaluating bid and understanding reasons for different mode of payments in a Merger and Acquisition transaction
Ø  As the law practitioners how to carry out a  corporate strategic analysis and using SWOT, PESTEL
Ø  Understand the use of corporate credit rating analysis
 
COURSE OUTLINE
 
DAY ONE
Workshop commences at 09.00 and ends at 17.30
 

Fundamentals of financial accounting

 
·         Understand the basis and fundamentals of accounting and the calculation of accounting profit
·         Compare accounting profit and cash profit and appreciate the importance and drawbacks of each method
·         Understand the basic return on investment model and its importance for organizational performance – the temptation for fraud
·         The role and significance of depreciation, amortisation and impairment in value and their impact on business valuation
·         Types of firms and their financial structure:
o   Legal entities – sole traders, partnerships, limited liability partnerships, limited companies and corporations
o   Understanding assets and liabilities
o   Investment capital - equity and debt explained
 
Exercise: Reviewing the ways of increasing ROI using the return on investment model and considering the legal aspects of the options
Exercise: Defining how much equity and/or debt a company should have and the lawyer’s role in raising finance
 

Understanding financial statements

 
·         What are financial statements and how significant are they for assessing corporate performance?
·         Understanding the various financial statements using an international corporation’s annual return:
o   The balance sheet – a statement of worth? Its importance and limitations
o   Profit & loss accounts and key measures of profit
o   Cash flow statements
o   Notes and the chief officers’ reports
·         Accounting rules – GAAP, IFRS, IAS – the attempts to regulate reporting
 
Exercise: Case study using an annual report and making some initial assessments using an international corporation’s financial statements in order to assess their financial stability for your client
 
 

DAY TWO

Workshop commences at 09.00 and ends at 17.30
 

Interpreting financial statements & assessing the firm

 
·         Understand the key financial ratios and how they are used to assess corporate performance:
o   Profitability ratios – GP margin, EBITDA and others – their significance and limitations
o   Liquidity ratios – the importance of cash - acid test & others
o   Solvency and the ‘going concern’ concept – gearing & debt/equity ratios
o   Investor ratios – EPS, PE ratio, yields – their significance and limitations
·         Understanding how the international credit rating agencies assess corporations and economies - Standard & Poor, Moody, Fitch – and the implications for organizations
·         Consider some well known accounting abuses and fraud
o   Creative accounting
o   Methods of fraud
 
Exercise: Case study using ratio analyses to assess the performance of an international corporation to enable you to understand your client and their needs Exercise: Preventing fraud and deception – the law practitioner’s role
 

Financing the firm and value creation

 
Understanding the limitations of accounting profit and defining the true basis for assessing corporate performance:
·         Risk and reward – why should capital be invested? The time value of money, inflation and risk – how to create value
·         The firm’s investment projects taking a portfolio approach - cost of capital and the weighted average cost of capital (WACC)
·         The true profit of the firm - economic profit & wealth creation
·         Evaluating investment proposals and adding value to the firm – appraisal methods:
o   Return on investment
o   Payback
o   Discounted cash flow – IRR & NPV – understanding the present value of future income streams
o   The difficulties of defining project lives and other risk factors
·         Understanding due diligence
 
Exercise: As a member of a project team evaluate investment alternatives using IRR and NPV to structure the project and advise your client
Exercise: Carrying out due diligence for a project
 
 

DAY THREE

Workshop commences at 09.00 and ends at 16.00
 

Development of corporate strategy

 
·         Organizational objectives, mission statements and agency theory
·         The concept of wealth creation as the fundamental basis for the firm
o   Wealth and shareholders  - share values & stock markets
o   Investment strategies – stability, retrenchment, expansion; mergers and acquisitions
o   Comparisons of share performance of some international corporations
·         How to carry out a strategic analysis using:
o   SWOT
o   PESTEL
 
Exercise: Reviewing the legal dimensions under a PESTEL study for an international corporation’s strategy
Exercise: Evaluating the success of corporate strategies using share price performance, stock market indices and wealth creation. What is the law practitioner’s role?







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