COURSE NUMBER: MBA236H.2A
COURSE TITLE: Financial Statement
Modeling for Finance Careers
UNITS OF CREDIT: 1
INSTRUCTOR: Jenny Herbert-Creek
E-MAIL ADDRESS:
herbert@haas.berkeley.edu
MEETING DAY(S)/TIME: Spring A
Tuesdays, 1/16-2/27
PREREQUISITE(S): Core Accounting;
Core Finance; familiarity with Microsoft Excel
CLASS FORMAT: Primarily
experiential -- the bulk of class time will be spent on hands-on Excel-based
exercises, completed individually or in small groups. Some lectures and case
discussions.
REQUIRED READINGS:
Financial Modeling and Valuation: A Practical Guide to Investment Banking and
Private Equity, Paul Pignataro
Excerpts from Valuation Univ Edition 6E, McKinsey
& Company
BASIS FOR FINAL GRADE: In-class
assignments, homework assignments, participation, final exam
CAREER FIELD: This class is most
relevant for students pursuing careers in financial services and corporate
finance, but any student wishing to practice the application of core finance
and accounting concepts in Excel will also find this class useful. This course
is designed for students without significant experience building financial
statement models and is therefore best suited for career switchers or students
who have not previously worked in investment banking or private equity.
ABSTRACT OF COURSE'S CONTENT AND
OBJECTIVES:
Financial statement modeling refers to taking historical financial statements
for a specific company, projecting those statements two to five years into the
future, and using the resulting projections for valuation and insight into the
potential for transactions such as a strategic merger, an initial public
offering, a leveraged recapitalization, or a leveraged buyout.
This hands-on course provides an
introduction to financial statement modeling. Students will:
construct a "3 statement" model projecting the income statement,
balance sheet and statement of cashflows
build a depreciation schedule, debt schedule and working capital schedule
explore various method to balance the balance sheet and how to handle circular
references
use valuation techniques such as comparable companies, precedent transactions,
and DCF
review larger transaction models such as a merger consequences analysis and/or
an LBO model
utilize Excel features such as keyboard shortcuts, efficiency tools, and
sensitivity analysis
BIOGRAPHICAL SKETCH:
Jenny Herbert Creek is a lecturer and consultant for programs in financial
modeling, Microsoft Excel, technical communication and leadership
communication. Her work draws upon more than 15 years of experience in the
educational services industry, including serving as CFO of two
educationally-focused companies. She is currently a member of the Professional
Faculty of the Haas School of Business, where she teaches financial modeling
and leadership communications to hundreds of MBA students each year. Jenny has
also taught at institutions that include Berkeley Center for Executive
Education, Stanford University, UCLA Anderson School of Business, the Olin
School of Business and numerous corporations and start-ups. Jenny holds an MBA
with honors from the Haas School of Business at UC Berkeley and is an honors
graduate of Stanford University, where she earned the Dean's Award for Academic
Accomplishment.