Managerial Accounting

We assume that you have seen Income Statements, Balance Sheets and Cash Flow statements. However, do you know various Free Cash Flow measurements and the limitations of using EBITDA? Are you familiar with the characteristics of financial statements for different industries? After a quick review can you determine the financial health and operational efficiency of a business? Do you know about the main links between Accounting and Finance?

How about the various accounting items that warrant the most attention if you are on a due diligence team or if you are considering buying a new business or selling a business of your own? What kind of adjustments should you make in the original statements to normalize them on the going-forward basis upon a change of control?

Now if you look at a publicly traded company’s financial statements, do you know how EPS (earnings per share) is really calculated? How do convertibles and preferred stocks impact the EPS calculations? How should you treat investments recorded in the equity method when you value a company?

These are some of those confounding issues often faced by young professionals. We aim to provide the missing links between book knowledge of accounting and actual application of accounting to current and prospective managers and deal makers.

Topics Covered

  1. Financial Statements basic knowledge required
  2. Various cash flow measurements
  3. Limitations of using EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)
  4. Key characteristics in financial statements for various industries
  5. Major common links between Accounting and Finance
  6. Due diligence list
  7. Typical normalization adjustments for a private business or special situation company
  8. Tricky EPS calculations involving convertibles and preferred stocks
  9. Various treatments of non-controlling Equity Investments in valuations
  10. Case studies of distressed companies
    • Financial Ratios
    • Financial Forecast
    • Asset Evaluation