Financial Analysis and Business Valuation Price

About the Course:

The course is fully focused on practical application, covering the preparation of financial statements and the development of detailed financial analyses based on them. Throughout the training, we will calculate and analyze financial ratios using real-world cases from Georgian companies across various business sectors. Through financial ratios, you will learn to analyze the figures presented in a company’s financial statements, both on a standalone basis and in combination with one another. The training covers horizontal and vertical analysis, as well as profitability, liquidity, leverage, and asset management ratios. We will examine in detail how to evaluate a company's financial health using these metrics and explore the critical relationships between ratios and financial statements.

Upon Completion of the Course, You Will Be Able To:

Independently evaluate the financial condition of companies across different business sectors. You will be able to assess whether a company faces imminent liquidity problems or cash shortages, determine how effectively it manages its current assets, evaluate the health of its cash operating cycle, and identify potential risks of over-indebtedness (excessive leverage).

Advantages of Our Training:

Participants will calculate and analyze the financial ratios of Georgian companies based on real cases. By evaluating companies across various business sectors, participants will gain a detailed understanding of the specific dynamics of each industry and learn what factors to consider during a financial analysis.

Target Audience:

Financial professionals, analysts, directors and founders of small and medium-sized enterprises (SMEs), and chief accountants.

Lecture 1: Financial Statements

• Preparation of financial statements (Balance Sheet, Income Statement) from the trial balance and journal entries;
• Horizontal and vertical analysis of the Income Statement (Profit and Loss).

Lecture 2: Cash Flow

• Preparation of the Statement of Cash Flows;
• Interconnections between financial statements and verification/reconciliation techniques.

Lecture 3: Financial Diagnostics

• Assessing a company's current financial position using ratios via practical Excel-based cases. We will analyze companies from the trading, construction, and service sectors, exploring the unique characteristics of each industry:
• Profitability ratios
• Liquidity ratios
• Asset management ratios
• Cash operating cycle
• Financial stability (solvency) ratios
• Practical Excel-based case studies;
• Analysis of the debt-to-equity ratio (equity vs. borrowed funds).

Lecture 4: Financial Ratio Analysis by Business Sectors

• Assessing the current financial position of a company by business sector;
• Specifics of financial analysis for trading companies:
• Margin analysis
• Customer and supplier analysis
• Inventory turnover analysis
• Commercial analysis
• Specifics of financial analysis for manufacturing companies:
• Cost of goods sold (COGS) analysis
• Overhead cost analysis
• Production analysis
• Commercial analysis

Lecture 5: Financial Ratio Analysis by Business Sectors & Benchmarks

• Specifics of financial analysis for construction companies;
• Specifics of financial analysis for service sector companies;
• Comparative analysis techniques and their importance;
• The role of benchmarks in conducting a financial analysis.

Lecture 6: Financial Model

• Cost analysis and establishing an optimal cost structure within the company;
• Selecting a financial strategy (Financial Strategic Planning);
• how to project and plan cash flows within a company;
• Review of a practical financial model example.

Lecture 7: Business Valuation

• Return on Investment (ROI) evaluation methods;
• Time value of money;
• How to select profitable investment projects;
• Detailed review of the Discounted Cash Flow (DCF) model for business valuation;
• Review of an investment project and decision-making discussions regarding the execution of the investment.

Lecture 8: Case Study

• Final case study preparation – selecting a real Georgian company, preparing a comprehensive financial analysis based on live data, and presenting the findings.

Your Trainer

Tamar Chkhatarashvili

managing Partner

Vladimer Bezhashvili

Managing partner