What Are the Different Types of Corporate Finance Programs?

Geri Terzo

Corporate finance programs prepare industry professionals to use techniques and skills in capital-raising activities. It's possible that the attendees of these courses might not be lead deal-makers but might still benefit from learning about corporate finance and might learn to better relate to other personnel. Among the types of programs offered are comprehensive training offerings that cover the various steps involved in raising equity or debt capital. In addition to comprehensive programs, there are other types of preparation that might focus on a specific niche within corporate finance, such as mergers and acquisitions (M&A).

A corporate finance banker helps companies secure the funds they need to start new capital and other projects.
A corporate finance banker helps companies secure the funds they need to start new capital and other projects.

Prior to embarking on any activity tied to capital raising, a company must assess its financial condition, including its current status and the anticipated future financial picture. Corporate finance programs could incorporate some accounting methodologies that help industry participants recognize the ideal way to go about raising money. Certain accounting strategies could be used to determine how well an organization is utilizing its financial resources and where there are opportunities for improvement. For instance, if there is a percentage of cash on a balance sheet that might be better served invested in some financial security, certain corporate finance programs might offer techniques that help recognize these opportunities.

Corporate finance encompasses a host of market activities, including M&A. Subsequently, corporate finance programs could include instruction on properly valuing assets and businesses. This information might be needed when making an acquisition or perhaps if an organization is being acquired. Valuation techniques allow industry participants to place a fair price on whatever asset is being bought or sold. Another portion of instruction might be devoted to determining whether equity or debt is the best solution to a financing need.

Risk is inherent in any financial transactions, and corporate finance programs could cover how to mitigate any potential for loss. These overviews might cover the capital structure of an organization and various ways to manage risk. Different scenarios should be addressed, such as the financial risks involved with restructuring an organization following a bankruptcy or the vulnerabilities that a company might face in performing an acquisition.

Professionals who are involved in corporate finance must know how to analyze data that is displayed on spreadsheets. Corporate finance programs might include specialized sessions that provide techniques for analyzing databases. Database templates exist for private and public companies as well as organizations that might be in financial distress, and programs might offer instruction on ways to interpret these documents.

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