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Over 14 Hours
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Financial Modeling for Renewable Energy M&A course will give you the skills to develop and analyze financial models for M&A transactions. The course covers essential topics including M&A transaction analysis, accounting, due diligence, deal structuring and financial modeling with focus on renewable energy projects. Advanced topics such as sizing debt financing, determining payment structures and carrying out investment return analysis are also covered in the course. Note that this is not a project finance modeling course to evluate a stand-alone wind or solar projects, in this course, we deal with acquisition of a renewable energy company.
In an online environment you will go from a blank Excel workbook to a financial model suitable for investment analysis, debt structuring and operational scenario evaluation. This course will provide step-by-step instructions on how to build financial model suitable for analyzing M&A transaction in renewable energy industry. Short form and long form M&A models will be build in the course.
By the end of this course, you will be able to build complex, real-life M&A financial model for acquisition of wind and solar projects, and you will acquire the skills necessary to analyze, structure, and execute deals in the renewable energy sector.
What This Course is About?
Financial models for M&A transaction are used to assess the risk and reward of acquiring a company. The transaction's debt capacity, investment returns and financial feasibility depend on expected future cash flows generated by the combined entity itself and a financial model is built to analyze this.
In the Financial Modeling for Renewable Energy M&A, we will model complex acquisitiion transaction from scratch in excel.
You will learn about:
- Building a financial model from scratch in excel for M&A deals (both short and long forms);
- M&A transaction analysis, accounting, structuring and due diligence for renewable energy sector;
- Creating best practice macro’s and Excel VBA codes to break circularities;
- Sizing debt based on multiple covenants for renewable energy acquisition financing;
- Building in the acquisition capital structure with the appropriate adjustments for the combined entity's balance sheet;
- Creating three-way financial statements and understanding the core accounting concepts that ensure we have a balancing balance sheet;
- Integrating synergy, EPS accretion / dilution, internal rate of returns and NPV analysis in the model;
- Building summary worksheet to provide meaningful analysis to present to key stakeholders;
- Advanced modeling and accounting concepts (flexible timing, stub period adjustment, multiple debt tranches, goodwill analysis etc.);
This is the same comprehensive financial training used to prepare analysts and managers at top financial institutions and infrastructure funds.
How Does It Work?
The course length is over 15 hours.
First, we will review the basics of M&A transactions, so we understand all essential components of M&A delas in the context of renewable energy industry.
Then, in the second part, we will build a short form M&A model and carry out EPS accretion dilution analysis.
We will begin financial modeling for complex M&A transaction in the third part, where we will build a complex and flexible M&A model for acquisition of a reneewable energy company.
Is This Course For You?
Yes, if your work involves developing, amending or reviewing financial models for acquisition transactions. This is a hands-on course, which is tailored to private equity, corporate finance professionals and investment analysts.
Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.
You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV and IRR. We also strongly recommend taking our course on Project Finance Modeling for Renewable Energy.
In this video we will go over the course structure and describe what we will learn in each part of the course. The course is divided into five parts:
- in part 1, we will learn basic project finance theory, so we understand in and outs of project finance before we begin modeling;
- in part 2, we will introduce the toll road case study, review the modeling methods to increase your excel productivity and we will jump into excel to model the construction period in our project finance model;
- in part 3, we will model out financial statements which will include income statement, balance sheet and cash flow statement.
-in part 4, we will introduce project finance items such as cover ratios, debt sculpting, debt service reserve account (DSRA), maintenance reserve account (MRA), revolver and shareholder loan. We will introduce to the problem of circularity in project finance models and we will learn how excel VBA can help us to resolve this circularity in excel. We will carry out valuation and model optimization in this part.
- in part 5, we will go over the advanced project finance modeling methods such as equity first financing, debt sizing macros, DSRA macros and scenario analysis automation.
It is highly recommended to watch this video so that you have the big picture of our journey ahead.
In this lesson we will be talking about what project finance is in the context of raising capital to fund construction of infrastructure projects. We will review distinctive features of the project finance and how project finance is different from the corporate finance.
In this lesson, we will review the important financial players, that participate in project finance transaction. These include investors, which are called project sponsors in project finance. Project sponsors, as we shall see, can further be divided into industrial investors, financial investors and sometimes government may also be an investor in the project.
Lender is another financial player which participate in project finance transaction. In fact, lender make project finance possible, because, typically, a majority of construction costs are financed with debt in project finance transaction. We shall see that due to transaction size, lenders typically unite and form a syndicate to arrange a syndicated loan to the project.
In this lecture, we will talk about the role of the Government and public private partnerships (PPP) in project finance. We will look at the development of PPA for power industry in the US and its effect on the PPP development. We will then review a dominant PPP form - concession agreement and its main varieties.
In this lesson, we will be looking at the risks in project finance transactions. As in any business venture, the project company in project finance faces 4 types of risks, these are project specific risks, macroeconomic risks, political risks and natural disaster risks. We will discuss these risks and see how they are allocated to the party which is best capable of managing those risks.
In this lesson, we will be looking at the capital and operating cash flows in project finance at different stages of project development. We will review the composition of project costs and project's Capex, different financing methods and forms, and important cash flows for lenders and equity investors.
In project finance, lenders usually impose strict restrictions on how the project company uses its cash. Cash movement in project company is controlled by means of control accounts and cash flow waterfall structure. In this lesson we will review these two important aspects of project finance transaction.
In this lesson we will talk about the covenants in project finance documentation. A covenant, also called an undertaking, is a promise by the borrower to the lender to do something or refrain from doing something in return for getting the loan. Covenants appear in the loan agreement. The financial covenants are extremely important to understand for modelers, because they are part of project finance models.
In this lesson we will review the case study which will serve as a basis for our project finance model throughout the course.
Frequently Asked Questions
The course is divided into 3 parts.
First, we will review the basics of mining projects development, so we understand all essential components of project finance transactions in the context of mining industry. Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in Excel. We will begin financial modeling in the third part, where we will build a financial model for gold project.
Part 1 consists only of concept explainer videos and quizzes.
Each module in part 3 comes with concept explainer video, a quiz and a financial modeling video. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
The course is based on the open-pit gold project case study.
Video content length 14 hours.
You’ll also get personalized, one-on-one support from me, so you can get your questions answered every step of the way.
When you enroll in Financial Modeling for Mining course, you'll be able to ask me questions around how to apply what you're learning in the course (see the screenshots below).
It's kind of sitting in the class asking me questions but through an ongoing email chain comments whenever you need help.
Absolutely. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
Yes! If you don’t feel like you’re mastering project finance modeling and analysis in the first 14 days of your enrollment, just email me and let me know. I’ll give you a full refund - no questions asked.
No catch here. My objective is to get my courses out to as many students that needed them as possible, which results in lower pricing as a starting point. Right now, I’m able to answer questions thoroughly at this price point. However, as enrollments continue to grow, I will probably need to increase enrollment price to reduce the number of students enrolling every month so I can continue to provide the level of personal attention I want to for everyone who decides to enroll in the course.