WHO SHOULD ATTEND?
Lawyers and other legal professionals motivated to gain a better understanding of their clients’ businesses and improve their understanding of corporate finance and investments.
Businesses create value, raise capital, pursue acquisitions, restructure their operations, etc… Lawyers are instrumental in making this possible. Such decisions are almost always driven by financial considerations. Yet, many lawyers don’t understand the financial reasoning behind their clients’ decisions.
The legal industry is undergoing significant change, fueled by competition, technology, tightening corporate budgets and increasingly demanding clients. Lawyers are expected to go a step further and provide legal advice that makes business sense. This program will help you analyze your client’s business and understand the financial rationale behind their decisions. Better understanding of finance will allow you to provide legal advice that takes into account some of your client’s most important
The intention is to gain new, or ascertain and refresh existing, knowledge of fundamentals of corporate financial analysis so attendees upon program completion should be able to:
- Understand how income statement and balance sheet are created and what they do (and don’t) tell about company’s business.
- Differentiate between investments in long term tangible and intangible assets (CAPEX) vs investments in net working capital.
- Calculate and interpret operating, investing financing and free cash flow.
- Calculate and interpret selected indicators of company’s liquidity (current ratio, quick ratio, cash ratio), activity (asset turnover, invested capital turnover, collection period in days, payment period in days, inventory turnover in days, operating cycle, cash cycle), leverage i.e. indebtedness (net debt-to-EBITDA, debt-to-equity), coverage (earning indicators vs debt burden, cash flow indicators vs debt or interest burden), and profitability (gross profit margin, EBITDA margin, EBIT margin, net profit margin, return on assets, return on invested capital, return on equity) – what they show and what’s still hidden, what are pitfalls of incorrect interpretation or wrong calculation, and how to put each indicator into relevant context including suggested adjustments to accounting treatment of certain items in order to bring them closer to economic reality.
- Comprehend how different combinations of profit margin, asset turnover and financing structure influence return on equity (are high margins good and low margins bad, is plenty of equity financing good and little of it bad?).
- Understand concept of economic value added (EVA) as a product of a spread between return on invested capital (ROIC) and cost of company’s capital given the amount of total invested capital. Do firms that have positive earnings actually create any value for investors?
- Understand how qualitative aspects of company’s operations reflect upon its financial indicators.
- Understand why there are differences in financial indicators between companies from the same industry and what these differences actually tell us.
- Properly interpret reasons for differences in financial indicators and ratios between companies from different industries.
Note: The classes are held in the evenings from 18:30 until 21:00.
Detailed outline will be published soon.
Dr. Andrej Grubisic is a Professor of Finance at the Luxembourg School of Business, teaching in the MBA program and in a variety of executive education programs. Dr. Grubisic started his career in 2002 in USA as a finance analyst in Sodexho Inc. In 2003 he joined Croatian Telecom as an assistant in the office of Chief Financal Officer where he was in charge of treasury and corporate finance, after which he moved to strategy department managing strategic planning for all member companies of T-HT Group. In 2007 Andrej co-founded fund management company Platinum Invest where he was a board member until 2008 when he sold his equity stake and became head of corporate finance within Erste Group in charge of Croatian market with focus on M&A projects, recapitalizations and financial restructuring. At the beginning of 2010 he started a corporate finance firm – GRUBISIC & Partners Corporate Finance focusing on mergers and acquisitions, capital raising, valuations, due diligence and financial restructuring. Since its inception the firm has completed over 40 different assignments. Andrej is responsible for business origination, conceptual setup of project engagements, supervision and quality control, client advisory and assurance of fulfillment of all preconditions for deal closing. Andrej has been a visiting professor of finance at Toulouse Business School in France. Andrej is co-founder of Croatian chapter of Turnaround Management Association (TMA) and member of its board of directors.
LSB Campus, 19 Rue Eugene Ruppert, L-2453, Luxembourg
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