In this course, we're gonna learn how to build a financial model using Microsoft Excel, a model that you might get from a team of investment bankers working on Wall Street. But instead of engaging these guys to build the model, we're gonna learn how to do it ourselves. And if you're using an investment banker or another professional, then you'll be well equipped to ask for a copy of the model and review the logic. financial modeling is a core skill in any finance function. Whether you're preparing an operating budget analyzing assets for impairment, valuing a new acquisition opportunity, planning a new strategy, negotiating new financing or better understanding your risk exposure. financial models underpin much of this work.

There's nothing more elegant than I finally tuned financial model, where at the click of a button, or the change of a number the financial results for years to come. whirlen spin before your eyes the results of said model allows senior executives in Corporate Directors to contemplate different scenarios, ideas, strategies and plans to create shareholder value. As fast as someone imagines another variation, the model reflects the financial results. What if we cut the prices to increase our market share? What if we acquire our nearest competitor by issuing debt? Big meaty questions can all be answered virtually on the fly with a highly refined financial model.

Financial modeling is about forecasting the future. It's about predicting the financial impact of operating, investing and financing decisions made today on the financial results of tomorrow. financial modeling is premised on making educated assumptions about key strategic drivers in the business. Anyone with a version of Excel and a few basic accounting and finance courses can build a financial model. However, without careful planning, and disciplined execution. Sadly, many of these models will be flawed.

Flawed, conceptually flawed, technically flawed inadvertently, but what I'll call slippery fingers. We will discuss and use various features of Excel. But this is not a course in Excel spreadsheets are powerful tools that allow us to build robust and powerful financial models but recognize up front that spreadsheets are vulnerable. Research has shown that most spreadsheets contain errors. So this tool was an issue I want us to address in this course because so often it's not. I've learned my share of these lessons through years of experience and hope that you'll take them into consideration as you develop your own competence in financial modeling.

We're going to learn how to build a financial model of all the statements that comprise a set of financial statements. Many forecasts I see as an executive and a corporate director only focus on the income statement, which provides an incomplete picture at best in this course, we will also forecast the balance sheet and the statement of cash flows together. Provide a fulsome and integrated view of the future. Finally, we will talk about how you model multiple divisions or subsidiaries and have them roll up into one consolidated result. It sounds daunting, but you will see for yourself it's not an insurmountable task. With a little intelligent planning and a lot of Excel discipline.

We're going to work through this course together, you will be provided with an Excel start file at the beginning of each lesson, so that you can follow along and learn by doing. I'm really excited to present this course to you. I'm a bit of a finance junkie myself, and have spent a number of years during my career in the corporate development function of several large public companies building financial models. As I've grown into more senior roles, I often find myself now evaluating the financial models prepared by others. In my experience, it's a rare skill the few finance people possess, which is the impetus to the development of this course. My name is Blair cook, and I hope you'll join me for the next hour.

So as we tackle this very challenging topic, click on the first lesson to begin