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7 reasons why financial modelling skills are indispensable to investment banking professionals

Posted on by Imarticus Learning

7 reasons why financial modelling skills are indispensable to investment banking professionals

To work in investment banking, you need to demonstrate that you have a range of skills and knowledge that are differentiated or in demanding careers, such as financial modelling skills. Moreover, the investment banking sector deals with the financing of companies through equity or debt. This includes work such as buying and selling companies in whole or in part, IPOs, joint ventures, or risk hedging.

To achieve this, investment banks must work directly with the management of the companies involved, as well as with investment funds or public financing facilities. 

This requires people who want to work in investment banking to have a multidisciplinary profile with extensive financial knowledge, agility in financial modeling, and good interpersonal and communication skills. Here we tell you 7 reasons why financial modeling skills are indispensable to have investment banking skills.

What is financial modeling? 

The term financial model refers to an abstract-mathematical version of a company’s financial reality in a set of spreadsheets.

best financial analyst courseA model is thus a mathematical, simplified, and idealized version of the reality of a company. The model works out simple versions of real factors and translates them into spreadsheets that facilitate the execution of mathematical calculations on the data.

The purpose of a financial model is to represent reality as simply as possible while still being a realistic reflection of the company’s situation, and thus to enable the company’s financial statements to be projected on the basis of current and historical data.

Here are the 7 main reasons why financial modeling skills are indispensable to having investment banking professional skills:

  1. It allows you to give a transparent picture of the overall situation of a company.
  2. It helps to project the impact of any changes in the company’s structure or business.
  3. Since financial models are designed taking into account historical data in addition to the structural situation, the model allows for the definition of scenarios with variables that reflect changes in the entire structure depending on their value.
  4. It is an integrated planning system that contains the profit and loss accounts, the balance sheet, and the calculation of capital flows with their respective dependencies. In this way, the model makes it possible to project the development and consequences of a change scenario for any given decision. This is an indispensable tool when making decisions affecting the structure of a company, as it makes the impact of any decision transparent.
  5. All companies need a business plan to organize themselves, but from the moment external financing comes in, whether, through credit or investment, the financial model becomes an essential planning tool.
  6. Investors only invest their money if they are convinced that the company will be able to repay loans and interest in the future, thus providing a return on their investment, which is why a transparent, complete, and correct presentation of the financial situation, especially the projected income, capital, and liquidity situation, is indispensable.
  7. Apart from their use in all matters relating to financing, financial models are also used for business management.

Why Imarticus for a CIBOP online course?

Financial modeling, i.e. the design and planning of a financial model, is mainly used in the preparation of a business plan or in the representation of a company’s financial structure. The aim is to translate the reality of the company into an abstract model that provides a transparent picture of the overall situation of a company. 

In Imarticus we offer CIBOP Certified Investment Banking Operations Professional courses for those who need to start from scratch. If you have any questions, please do not hesitate to contact us to have more information on investment banking courses.

Financial Modeling Technology Training: The Advanced Technologies that are transforming Every industry

Posted on by Imarticus Learning

Financial Modeling Technology Training: The Advanced Technologies that are transforming Every industry

Finance professionals can achieve prospective results only when a large amount of data is organized and structured. A poorly structured and disorganized report leads to confusion in senior management. To facilitate effective decision-making in the organization, it is essential to have dynamic financial models. The data needs to describe the financial performance accurately and precisely. With the help of technological tools, Financial Modeling has become easy. Artificial Intelligence, Robotic process automation, and Machine Learning have all given a competitive edge to the segment. 

What does the Financial Analyst Course offer?

In the current era, the expectations for a finance professional have increased. Financial Modeling will enable you to execute the business problems and derive desired solutions. You can soon increase the company’s financial statement effectively by improving its operations.  

Which segments does financial modeling technology need?

Financial Modeling is a highly demanded course in the market, and multiple international companies have included it in their parameters.

Financial Modeling technology is a booming topic in segments such as:

  • Investment banking
  • Corporate Finance Companies
  • Private Equity
  • Venture Capital Firms
  • Banks

If you are a finance graduate or an employee willing to upgrade your skills in financial modeling with technology, then it is the right course. You can gain insight to turn the numbers into explanations and information into valuable reports for the development of the business.

Why chose Imarticus for the Financial Analyst Course?

The search for institutes to teach you CFA Course In India stops here. We, at Imaritus, offer you a Financial Modeling course that top experts from financial backgrounds have prepared. A systematic audit has been done to ensure that you get the best industry knowledge. We assure you that you will master the art of effortlessly analyzing complex financial data with the help of technology. Our course is updated every year to include the latest information from the industry. The curriculum is globally recognized, with ample case studies to help you grow through the learning process. Seminars and workshops are held by Financial experts belonging to the Banking, Investment, and Stock sectors. 

How can a financial modelling course with Technology help you?

Once you gain enough knowledge from the course, you can estimate the risks and develop cost-effective plans for the organization. You can easily create an attractive presentation for improving the enterprise’s financial status. Since the financial models represent the enterprise’s financial performance, it becomes necessary to determine the reports carefully.

  • You can gain exceptional skills in Microsoft Excel 
  • Build Profit and Loss statements quickly by analyzing the raw data
  • Gain expertise in using financial modeling skills
  • You can even create multiple financial models to solve the issues at work
  • Learn to use pivot tables and advanced features for visualization

Career choices after Financial Modeling 

There are multiple career opportunities under Financial Modeling. Some of the top career options are as below:

  1. Banking
  2. Equity Research
  3. Corporate Development
  4. Transaction Advisory
  5. Financial Modeling analyst
  6. Chartered Financial Analyst

Now, to start the first step toward a tech-enabled financial modeling career, you need to enroll in a Financial Analyst course. You can visit our centers in Thane, Pune, Gurgaon, Chennai, Delhi, and Bengaluru. Visit us today!

Here’s what Gen Z looks for in a financial modelling certification course

Posted on by Imarticus Learning

When we talk about generation Z or centennials, we refer to all those born between 1997 and 2012. They are the generation that precedes the millennials and has specific characteristics that affect their view of the financial world. Centennials are at the point where they are beginning to build their professional future and are also starting to earn an income.

Although they are a curious generation that wants to be prepared, they do not always have the right tools to do so. Before we talk about what they are looking for in financial technology courses, we need to understand their financial habits and what they think about the industry.

Gen Z’s Financial Habits

Gen Z stands out for having a strong interest in their finances since pre-adolescence as a result of having witnessed the problems faced by millennials. The fact that they have had access to IT tools from an early age has driven these young people to be self-taught. This generation is looking for financial security and stability, and having grown up with technology, they seek to do so through this medium.

However, there are other things we cannot overlook to understand how this generation functions and what they expect from the world.

  • Approximately 98% of centennials have a smartphone.
  • They spend up to 13 hours a day behind a screen, 3 of which are watching videos.
  • It is estimated that they can concentrate for 8 seconds without being distracted.
  • They currently make up 40% of consumers
  • Most find new products through social networks.
  • Almost all say that cost is the determining factor in a purchase.
  • In a shop, a Gen Z member will always check the price online.

Fintech Courses Online for Centennials

Born in the digital age, they demand services that meet their demands for transparency and constant attention. The high interest shown by this generation in finance from an early age has led to ideal profiles for financial modeling. However, due to their characteristics, training in these subjects must also be adapted to their interlocutors to be successful.

  • Courses must be dynamic and interesting
  • The technological component and its application to the real world are fundamental.
  • Learning directly from industry experts is expected. 
  • A comprehensive and user-friendly digital learning platform is necessary.
  • Preparation for the world of work
  • A course with a strong curricular impact
  • Mentorship

What Is the Career Future of Gen Z?

Today this generation is already showing better use of financial instruments compared to millennials and baby boomers. With a financial planning and analysis course, this generation can open many doors in the professional world. Some of the positions to which they could aspire are:

  • Asset valuation consultant
  • Financial planning lead
  • Equity research analyst
  • Equity market analyst
  • Financial analyst
  • Project finance manager
  • Mergers and acquisitions senior analyst
  • Corporate finance manager
  • Business valuation consultant
  • Private equity finance manager
  • Equity analyst
  • Asset and wealth management associate

Imarticus offers the Financial Analysis Prodegree in Collaboration with KPGM which has everything Gen Z is looking for in financial modeling. The career opportunities and the course content are perfect for sharp minds with an appetite for the financial world. 

Every generation changes the rules of the game and companies must adapt to the terrain to survive. However, the rule is always the same: innovation as a solution to provide services that meet the needs and desires of customers, whatever their age.

Financial modelling trends that have carved a niche this year

Posted on by Imarticus Learning

What is financial modeling and, what are its applications in the industry? This question is now much more important for finance individuals than ever. Corporate organizations and banks have realized the importance of financial models. Usually, financial analysts are responsible for creating financial models.

Business organizations can take better decisions when they have access to detailed financial reports. Read on to know what is financial modeling and how to learn more about it.

Understanding financial modeling

Any real-life financial situation can be represented in numbers via a financial model. Any company, investment idea, or project can be represented in numbers with the help of a financial model. It is a type of mathematical model that represents the performance of a project or any company. Before indulging in a new project, company executives predict the benefits and costs of the project via financial models.

Company executives use financial models to predict the impact of a business decision on the company’s financial performance. If there is a change in business strategies, financial models help in predicting the performance of company shares/stocks. Financial models can explain the financial impact of change in external factors like economic regulations or tax regulations. Financial models include cash flow analysis, expenses, profits, etc. Usually, financial models are created on excel sheets by financial analysts.

Top financial modeling trends

Before starting a new business or venture, financial models are made to predict its performance. Many financial models turn out to be successful businesses or projects. Some of the top financial modeling trends that have carved a niche are as follows:

  • Billing models

Many businesses offer digital services to customers and charge them based on various billing models. Among all the billing models, subscription-based billing has gained popularity in recent times. Consider OTT platforms that are offering a subscription to people for viewing unlimited video content. Similarly, many social media platforms ask users to get a premium subscription for accessing the content without any advertisement. Subscription-based billing models are gaining popularity as businesses can see profit in them.

  • Fintech models

Many corporate firms are investing in fintech start-ups nowadays. It is because people love to gain access to financial services just by a few taps on their smartphones. Many fintech models have become reality and converted into successful businesses. Financial institutions that are looking for digital transformation are relying on fintech models. Analyzing the impact of digital transformation on your company is one of the financial modeling best practices.

  • M&A models

Gone are the days when business organizations could not predict the impact of an M&A (Mergers and Acquisition) deal. Financial modeling can help you predict the performance of a company after it acquires or merges with some other company. Using the financial modeling best practices, financial analysts can help in finding beneficial M&A deals that could boost the overall revenue. Seeing the benefits of financial models for making business decisions, many M&A advisory firms have started hiring financial analysts. You can also become a successful financial analyst with a financial modeling certification.

How to learn financial modeling?

A financial modeling certification course can help you know more about industry practices. The best option is to go for the Imarticus Learning’s Financial Analysis Prodegree program. We focus on a hands-on learning approach to make finance enthusiasts job-ready. The best about the financial analysis program is that it is recognized by KPMG, one of the accounting giants.

The financial analysis course also allows you to work on industry projects and case studies. By working on financial modeling projects, you will get to know which financial models can convert into successful businesses. Start your financial analysis course now!

Fundamentals of Forecasting – Basic Modeling Hygiene – III

Posted on by Imarticus Learning

By Reshma Krishnan
We are continuing to understand the Fundamentals of Forecasting. Please click here for Part 1 and Part 2.
Many aspiring candidates ask us what is so special about the FMVC program at Imarticus Learning. After all, shouldn’t an MBA suffice? The problem with MBA’s, regardless of which school you go to, is that they don’t teach you role specific issues. For instance, they don’t have specific modeling modules. They will have a forecasting module but they won’t teach you how to model or how to forecast step by step. In the Financial Modelling and Valuation Course (FMVC), India’s leading Forecasting and Financial Modeling program, we teach you the minutae and we go into specifics. One such specific is modeling and forecasting hygiene.
Hard Coding- the model users bane.
This is the first thing I teach in modeling class. Hard Coding is essentially a stand alone number in a cell, which has no back up. It says nothing about the number. You must never hard code a forecasted number because the forecast is always done on the back of an assumption, which has to be modeled in. Hard coded numbers are usually past data, actual data that has been verified and been the result of auditing. A forecasted number should always be a linked number from an assumption.
Colour Coding
Staying with hard coded numbers, it always helps to colour code. In fact, in my class, I mark an assignment zero if it is not colour coded. Red hardcoded number tells me that the forecaster had no option but to hard code. All actuals should be in a different colour to forecasts and all delta numbers, that is the variable you are using to arrive at a forecast needs to also be in a different number.
Give the delta its own cell
Let’s say you want to increase the sale of pencils in 2017 by 10% from 2016. You have two ways to do it.
=(2016 revenue cell) x 10% +(2016 revenue cell) = 2017 revenue.
Or
You create a special cell for 10%
= ((2016 revenue cell) x (10% cell) )+(2016 revenue cell) = 2017 revenue.
Here I am assuming that revenue is growing by 10% . This helps me change the delta as I see fit which then changes my model. The delta is the rational for my model. If you hide it within a formula, I have to constantly look at formulas to find my assumptions.
Learn more about Forecasting by joining our course, FMVC,Financial Modeling and Valuation Course, India’s leading program in Financial Modeling and Valuation and focused on improving your chances on having a career in Investment Banking or Equity Research.

Fundamentals of Forecasting – the Basic Premise of Forecasting – II

Posted on by Imarticus Learning

By Reshma Krishnan
We are continuing to understand the Fundamentals of Forecasting. Please click here
The fewer the assumptions, the stronger the forecast – at least in the beginning when you are learning how to model. Most investment Banking models end up running into 40 assumption sheets, each linked to another. While you might believe such minutiae makes a difference, it’s almost always just to make yourself feel better. Yes, your ability to understand every cost element is good, but its futile if your understanding of the industry works or its cost structure is weak. Key assumptions built into the forecast can also be lost, like trees in a forest. Links can be very hard to find. A simple forecast on the other hand helps you understand what drives basic line items while giving you the ability change basic assumptions. So for instance if you are forecasting the cost of a cup of tea, you break the cup of tea into its major elements, milk, tea, sugar. Three basic drivers, but if you decide to link the price of tea not to the retail rate but to an auction rate that is further linked to an auction house pricing, there are many chances your Financial Analyst coursemodel will be faulty for no tangible benefit.

Forecasting is hard- if it wasn’t, financial modeling and forecasting would not be the number one skill required in financial services, especially Equity Research, or the most popular program in Financial Services Education. It requires patience and a deep thorough understanding of the industry. Forecasting is what Equity Research Analysts do all the time which is why Equity Research Analysts are industry specialists. You won’t find an analyst doing both steel and retail e-commerce. If you are not detail oriented, you are not going to be great at forecasting.
Your forecast is as good as your data, or your weakest link- using solid numbers always feels like an attractive proposition. Investment Bankers love to receive solid data from the clients. Equity Research analysts love to receive solid numbers from the industry or a company but what data do you trust. How often do you use that data? Can you remove the bias in the data. Data you receive from clients will almost always be optimistic, same with industry. Data you receive from Private Equity will almost always be pessimistic. There is bias in every data and your job is to remove bias.
Learn more about Forecasting by joining our course, FMVC, Financial Modeling and Valuation Course, India’s leading program in Financial Modeling and Valuation and focused on improving your chances on having a career in Investment Banking or Equity Research.