Corporate Finance & Balance Sheet Structure, Dealing with Banks

Often companies do not receive the appropriate levels of debt in terms of amount and tenor (e.g. insufficient working capital facilities, interest rate and refinancing risks through maturity mismatches, lack of support during growth (periods) or do not know how to determine them.

For this very reason the seminar teaches the key principles of sound, sustainable and stable corporate finance as well as balance sheet and credit structures.

Key content:

  • strategy is destiny
  • corporate strategy and its financial consequences
  • identification of operating value drivers and success factors
  • development of an in-depth understanding of:
    • market and industry environment
    • capacity utilization and efficiencies
    • product life cycles
    • seasonal developments
    • as well as their financial impact
  • value creation strategies
  • return on equity versus cost of equity
  • economic profit as criterion for investment decisions
  • identification of individually relevant cash flow drivers and critical corporate performance ratios to manage and supervise corporate success
  • debt capacity and its dynamic development
  • purpose of loans and sources of repayment
  • primary and secondary sources of repayment:
    • operating cash flows
    • working capital management
    • seasonal contraction of working capital
    • liquidation of non-operating assets
    • disinvestments
  • corporate and financial projections
  • principles of solid and sustainable balance sheet and credit structures
  • the banker’s perspective – arguments for solid finance structures
  • (in-)appropriate demands by banks

Objectives:

Knowledge about:

  • relevance of facts, figures and developments for banks
  • documents / information demanded by banks and its basis
  • methods to determine and structure the financial needs of the own company

which results in:

  • improved negotiation position vis-a-vis banks
  • convincing argumentation for tailor-made finance structures for own company vis-a-vis banks

The participants receive a check-list and are being introduced to the application of the excel-based „K&K-Checker“, which allows to determine the capital needs of a company and its optimal financing structure in a user friendly way.