Melbourne, a thriving financial services industry, is home to some of the top-ranked universities in Australia that offer financial modeling courses. Finance modeling is the art of combining accounting, finance, and business metrics to create an abstract representation of a company in Excel forecasted into the future. Due to its high demand, it can be challenging to decide among the numerous finance courses that are offered in the market. If you want to advance your career in the finance sector, you’ve come to the perfect spot. In this article, you will be recommended the best financial modeling courses in Melbourne to help you advance your financial professional.
Melbourne is a vibrant financial hub, as its economy expands, so does the demand for financial modeling professionals. Both beginner and experienced learners can find a course that suits their needs in the city’s broad selection. Melbourne is a great place for networking and hands-on experience, it has a thriving business culture and is close to important financial institutions and enterprises.
Now comes the point, what is financial Modeling? To build a career in this field one must have a very clear idea regarding this topic. A financial scenario is built up in an abstract form through financial modeling. This is a mathematical model made to illustrate the performance of a financial asset or portfolio belonging to a company, venture, or other investment.
A financial model is just a spreadsheet that forecasts a company’s future financial performance, often made in Microsoft Excel. The prediction, known as a “three-statement model,” necessitates the preparation of a balance sheet, an income statement, a cash flow statement, and supporting schedules. It frequently draws from past performance data and projections made by the company.
From there, more complex models can be constructed, such as
- Discounted cash flow analysis (DCF model),
- Leveraged buyout (LBO),
- Mergers and acquisitions (M&A), and
- Sensitivity analysis.
Major Highlights of Financial Modeling:
Accounting, financial, and business data are combined in financial modeling to anticipate a forecast of a company’s future performance. The basic objective of financial modeling is to accurately predict a company’s future financial performance. Modeling can be beneficial when determining the value of a business and whether to obtain capital, grow organically, or acquire rival firms.
Purpose of Financial Modeling:
Financial modeling is widely used in businesses. It results in decision-making and performing financial analysis whether inside or outside of a company. The following decisions are made using financial models:
- Budgeting and forecasting
- Financial statement analysis/ratio analysis
- Raising capital (debt and/or equity)
- By creating additional stores, expanding into new markets, etc., the company can grow organically.
- Making acquisitions (businesses and/or assets)
- Budgeting for capital (deciding which projects to fund first)
- Disposing of assets and corporate divisions.
- Management Accounting
- Valuing a business
Types of Financial Models
Generally, people who are new to the concept of financial modeling normally think that there are only three types of financial modeling. However, it is not. Actually, it is more than that. They are as follows:
- Three Statement Model
- Credit Rating Model
- Discounted Cash Flow (DCF) Model
- Comparable Analysis Model
- Merger Model
- Leveraged Buyout (LBO) Model
- Model with Scenario
- The Three Statement Model:
The fundamental building block of all financial models is the Three statement Model. The three-statement model is primarily to analyze historical results and set up a forecast for the future. It sets the foundation on which all other models are built.
- Income Statement
- Balance sheet
- Cash Flow Statement
- Supporting schedules
- Charts and graphs
- Analyze historical results
- Establish forecast assumptions
- Build the forecast
- Make the necessary preparations for more complex modeling
- The DCF Model:
The next most common type of model to be layered on top is Discounted cash flow analysis or DCF model. The purpose of a DCF model could be to value a business or an investment or a project determining something to assess strategic initiatives. Internal planning and raising money to name a few examples. This is one of the core types of financial models.
- Everything in the three-statement model
- Free cash flow (firm or equity)
- Terminal value
- Weighted Average Cost of Capital
- Net Present Value using XNPV
- Internal Rate of Return in XIRR
- Value a business, project, or investment
- Calculate the cost of acquisition;
- Evaluate the results of a strategic initiative.
- Internal FP&A
- Raising money
- Budget/forecast Model:
It’s usually a monthly type of model that has a lot of details about the operations of the business and rolls forward each month to add another forecast. The purpose of the model is for internal planning, budgeting, and evaluating the performance of the business strategic planning.
- Monthly Assumptions
- Drivers of Operations
- 3 Financial Assumptions
- Ability to “roll forward” the model
- Charts and graphs
- Internal corporate planning
- Budgeting and forecasting
- Measuring results and performance
- Strategic planning
- Valuation Model:
In addition to budgeting and forecasting models, there is a valuation model. This valuation model is used for many purposes. It can be used to display a range of values for a business summarized valuation methods and create a presentation often for investment banking or private equity types of transactions.
- Comparable company analysis(comps)
- Precedent transaction
- DCF model
- Football field chart
- Value a business
- Summarize the various valuation methods
- Create outputs, charts, and graphs for a presentation
- Merger & Acquisition (M&A) model:
This M&A model is a very advanced type of financial modeling. It is mostly used in investment banking and corporate development.
- Stand Alone 3 statement and DCF models
- Operating Scenarios
- Consolidated (pro forma) model
- Transactions assumptions (synergies, financing, takeover premium)
- Accretion/dilution analysis
- Sensitivity Analysis
- IRR and share price impact
- Value a target business
- Decide how much to pay for an acquisition
- Compare cash vs share consideration
- Evaluation of synergies and takeover premiums
- Assess the net impact of the acquisition
- LBO Model:
Another type of advanced financial model is the leveraged buyout or LBO model. The LBO model continues the practice of acquiring another firm while utilizing a sizable percentage of the funding source.
- 3 statement and operating model
- Operating scenarios
- Transactions assumptions (financing, debt tranches, takeover premium)
- Debt and interest schedule
- Levered IRR analysis by investor type
- Sensitivity analysis
- Value a target business
- Determine how much to pay for an acquisition
- Assess how much leverage can be used
- Maximize the equity IRR
- Evaluate scenarios and sensitivity
- Obtain funding and decide which investment to make.
Importance of Financial Modeling Courses in Melbourne:
There is an incredible scope of financial modeling all over including Melbourne. Financial modeling is a useful and important approach to financial planning that gathers data, evaluates business performance, and even helps in making wise business decisions.
Had it been not there in the finance sector the correct understanding of a company’s own finances would be lacking. Cash flow would not be appropriately reported for both the inflow and outflow. Making future projections for the company would have been impossible.
Data on growth, mergers, and acquisitions won’t be available either. The industry will be in upheaval and plagued with uncertainty. Therefore, financial modeling is widely utilized to ensure that none of the aforementioned haphazard occur in a company.
If you want to succeed in the finance industry, it would be wise to choose one of the financial modeling courses listed below.
Scope of Financial Modeling Courses:
Financial modeling courses in Melbourne or any other part of the world has a wide range of scope as it is a job-oriented course. Individuals pursuing this course from anywhere have an advantage in recruiting and getting jobs. As a stand-alone career, financial modeling can be quite lucrative because of it:
- Upgrades your existing career
- Helps finance experts in completing a range of activities
- Boosts your profile in the industry
- Financial modelers are hired by many companies
- The applications of financial modeling are numerous,
- It is a crucial skill for business owners and startups.
- Can help investors in making knowledgeable judgments
Lucrative Job Profiles With Financial Modeling:
Individuals pursuing financial modeling courses in Melbourne or any other part of the world are readily accepted. Many companies demand the hiring of applicants who meet the necessary qualifications.
When CFA holders, MBA holders, investment bankers, financial planners, stock analysts, and other professionals mention financial modeling on their resumes, they get an advantage. The obtainable career opportunities with financial modeling skills are:
- Investment Banker
- Equity Research Analyst
- Financial Analyst
- Risk Management Consultant
- Investment banking operations Lead
- Commercial Analyst
- Financial Research Analyst, and many more
Top 5 Financial Modeling Courses in Melbourne with Details:
There are numerous offline and online financial modeling courses in Melbourne and throughout the rest of the world. This course is accessible to people worldwide. Following are the specifics of our discussion:
1. IIM SKILLS:
It is one of the top-notch financial courses in Melbourne provided in an online mode named” Online Financial Modeling Course”. There are 6 modules in this course’s curriculum. Students from Melbourne can easily follow and participate in the 50+ hours of live classes that are held over a three-month period in the virtual classroom.
There are four live projects, five case studies, and more than 100 hours of practical work throughout the course. For individuals looking to enroll in “Financial Modeling Courses” in Melbourne, IIM SKILLS is the ideal choice because it offers one of the top faculties, lifetime access to the materials, and round-the-clock online support to its students.
IIM SKILLS Financial Modeling Course Content & Modules:
|Module 1 – Basic and Advanced Excel (8-10 hours)
Module 2 – Accounting Concepts and Financial Statements (5-7 hours)
|Module 3 – Ratio/KPI Analysis (4-6 hours)
Module 4 – Basics of Financial Modeling (4 hours)
|Module 5 – Different Types of Financial Models (12-15 hours)||• LBO Model
• M&A Model
• Private Equity Return Model
• 13 Week Cash Flow Model
|Module 6 – Business Valuation (7-9 hours)||• Relative Valuation – Trading and Transaction Comps
• DCF Valuation
• NAV Approach for Valuation
- Course Name: Online Financial Modeling Course
- Duration- 3 Months
- Course Fee: 732.29 Australian Dollars + GST
After completing the course, students receive a certificate. There are weekend classes available for professionals and for everyone else, there are weekday classes. Every novice and professional needs the knowledge and skills in the course they provide to get a foothold in the banking industry.
One of the reasons they rank so high is because of their approachable teaching style toward their students, who receive a lot of self-assurance and practical experience as a result of taking the course. Additionally, it offers support with the preparation for mock interviews and guarantees an internship.
2. University of Sydney:
This course offers an introduction to the disciplines and methods that support the creation of clear and user-friendly financial models. The course is organized on tried-and-true best practice methods that are the distillation of the lessons discovered while working as a professional financial modeler for many years.
This course stands out among the best financial modeling courses in Melbourne because of its distinctiveness. Counting from the day you enrolled, you will have 120 days to finish the course at your own pace. The course requires 60 hours to complete, and learning is self-managed using an online learning management system (Canvas).
Following this course, you ought to be able to:
- To solve problems, analyze and use relevant spreadsheet analytic approaches
- Analyze and reduce difficult issues to straightforward conceptual models
- Create and build financial models that follow best-practice guidelines
- Examine and evaluate financial models in light of best-practice guidelines
- Utilizing the methods and tools of financial modeling, one can communicate effectively and with confidence within a company.
- Cite the benefits of using financial models to analyze a company’s prospective future performance and comprehend its existing financial status.
Course Fee: $ 890.00
Course Duration: 120 days
- Financial Modeling Courses in Singapore
- Financial Modeling Courses in Dubai
- Financial Modeling Courses in India
3. Kaplan Schweser:
This course focuses on the abilities and methods necessary to build financial models to assess the performance of an organization under various economic and environmental scenarios. Kaplan Schweser, a member of the Marquee Group and a market leader in financial modeling training, offers one of the best financial modeling courses in Melbourne.
The financial modeling course demonstrates its effectiveness as a practical course by incorporating Kaplan’s learning methodology and the flagship group’s technical competence. Model development, assumptions, additional Excel features, error detection and prevention, sensitivity analysis, model output display, and tips and traps are all covered in this course.
Course fee: $ 199.00
180 days of access
Additionally, this course assists students in getting ready to pass exams for prestigious financial modeling credentials like the Advanced Financial Modeler exam provided by the Financial Modeling Institute. Starting with this extensive online course will help you move closer to enhancing your qualifications and positioning yourself for exam success.
4. Curtin University:
Curtin University is ranked in the top one percent of universities worldwide imparting the best financial modeling courses in Melbourne. The lessons here will help you learn.
- Describe a variety of financial options for managerial and strategic decision-making.
- Develop your analytical and research skills for tackling financial problems.
- Create financial models for what-if analysis, forecasting, and valuation.
- When solving problems, use financial programming techniques.
- Utilize quantitative modeling tools to support managerial and strategic decision-making
They focus heavily on the needs, wants, and aspirations of the younger pupils when designing their courses. However, there is a different set of operating procedures for international students.
- Software development
- MS Excel
- Investment decisions
5. JPA Financial Modeling:
JPA Financial Modeling specializes in the creation and audit of financial models and offers services that enable you to confidently and precisely base decisions on your financial models. As a result, it offers the best financial modeling courses in Melbourne.
All JPA training instructors are full-time experts with extensive experience in modeling Australian transactions, including PPPs, infrastructure auctions, and corporate mergers and acquisitions.
Their regular selection of courses consists of:
Introduction to Excel (1 or 2 days)
Financial Modeling Overview (2 days)
Project Financial Modeling Overview (2 days)
A one-day workshop on dashboarding, charting, and presentation
They provide both internal and external training programs. Only 10 people can enroll in each of these public courses, which are frequently offered in Sydney and Melbourne. They also provide services like
JPA teaches model building in a special method that makes it possible to build models with the fewest possible equations and the quickest calculation times, making the modeling process more natural and effortless.
They offer recommendations based on real-life work scenarios and problem-solving techniques, directed by experienced modelers who are familiar with high-risk regions for errors, to make the models seamless and error-free. When it comes to JPA, model auditing techniques are the finest.
6. Plum Solutions:
This is one of the ideal places to learn financial modeling courses in Melbourne. It provides instruction in both online and offline modes. It has been the top pick for both working people and students because of its flexible scheduling. To accommodate everyone, they have created their courses on a variety of levels. Let’s have a look:
Financial modeling for non-financial modelers: In this course, the foundational concepts and basic steps for creating a financial model in Excel are covered. You will get the knowledge and abilities necessary to create your own financial model during this hands-on course, which you can save for future use. You will gain knowledge of basic modeling ideas, best practices, and how to design and build an approachable model.
Financial Modeling in Excel: Throughout the course, participants build their own financial models, which they can keep and use as a resource in the future. You will discover how to plan and produce a user-friendly model that anyone with a basic understanding of Excel can use.
During the course, you will discover how to
- Set data entry settings to verify data entering.
- Protect spreadsheets to avoid improper use of your model.
- To assist people in navigating your model, create a navigation page.
- Either create a financial model from scratch or enhance an existing one.
- Present findings in a clear and insightful manner.
- By including error checks, you can reduce errors.
- Make drop-down boxes so that a model can provide a range of outcomes depending on the scenario variable selected.
- Reduce risk by supplying assumptions
Advanced Financial Modeling in Excel:
This is a one-day workshop intended for Excel users who are familiar with its tools and functions.
Upon completion of the course, participants are expected to be able to do at least:
- Navigate Excel with confidence
- Use absolute cell references (like =$A$1)
- Create and regularly employ sophisticated Excel tools and functions.
The advanced Excel skills of the students are built upon in this course, which blends these skills into intricate and dynamic financial models. It will demonstrate how to use Excel to update your current model using the newest techniques. You can make additional adjustments to achieve more success if you are skilled at creating financial models for your business.
All three courses can be purchased at once to save you money, or you can enroll in each course separately. A partially online or offline enrollment option is available to people who live close to Brisbane, Sydney, or Melbourne.
Frequently Asked Questions regarding Financial Modeling Courses in Melbourne:
Q1. Is taking classes in financial modeling helpful?
A–For startup entrepreneurs and small business owners, financial modeling can be very helpful. Financial modeling can help you compare pricing strategies, determine how much capital you’ll need, and get ready for investor meetings.
Q2. Are courses in financial modeling a suitable career path?
A–Given that the professionals engaged use Excel modeling abilities, which are in high demand in the business world’s ongoing development, financial modeling is a superb career. For careers in commercial banking, a lot of companies think that having great Excel abilities is advantageous.
Q3. Is the financial modeling course challenging?
A–The process of developing financial models is difficult and complex. It necessitates multitasking, a variety of technical and quantitative abilities, as well as soft skills like problem-solving, decision-making, and attention to detail. Building financial models requires years of practice for the majority of people. While reading equity research papers can aid in this process, learning these abilities is frequently done through the do-it-yourself approach. Even for professionals in the financial industry, financial modeling is a challenging task.
Q4. What are the results of the course in financial modeling?
- Excel proficiency must be demonstrated in a quick, efficient, and accurate manner.
- Create programs for financial modeling that are reliable and functional.
- Utilize effective modeling strategies for financial forecasts.
- Construct a simple three-statement financial model.
Q5. What advantages come from studying financial modeling?
A-Benefits of Financial Modeling:
- Better and More Comprehensive Understanding of a Business
- Periodic Performance Review
- Determine the Fund Requirement and Strategy
- Value the Business
- Reduce Risk
- Financial Models Produce Quick Results
- Much Accurate Financial Budgets and
- Forecasts and Promotes business expansion
In the finance industry, a financial model is a crucial corporate tool that is regularly employed. By enrolling in a reputable financial modeling school, you can improve in your field of work. You can make better decisions with the help of the aforementioned financial modeling courses. You’ll find that as you learn how to use the software and all of its functions, they’ll become crucial to your profession.
It will be used by you to decide, create financial projections, assess business operations, and monitor cash flow. Regardless of whether you are a recent graduate or an experienced financial professional, this is the perfect skill to advance your career. If you choose to enroll in one of the above-listed financial modeling courses in Melbourne, you’ll discover how straightforward and realistically you may build financial models for your business or any other.