Investment Controlling
Inhouse Seminar: Investment Controlling
Whether it is a research project or the purchase of machinery, investments are among the most important decisions a company makes. Their impact is long-term, they require substantial capital, and because of their time horizon, projected figures are far more uncertain than in budget planning. That is why they require particular care. In addition, there are legal requirements that many managing directors and board members are not aware of: they may be held personally liable for poor decisions if the supporting decision documents were inadequate.
Typical calculation errors occur time and again, and these are identified in the seminar. The seminar also places special emphasis on reviewing planning assumptions and on the business plan, which links strategy with operational figures and liquidity. Post-investment reviews make it possible to systematically improve future decisions.
After the seminar, you will be able to
- identify the pitfalls and success factors of integrated investment appraisal
- apply the appropriate investment controlling methods with greater confidence
- use the key methods and tools more reliably thanks to numerous practical exercises
Seminar content
- An overview of all aspects of investment controlling
- Business Judgment Rule: legal requirements for investment proposals
- Limits and possible applications of static investment appraisal methods (“profitability analyses”): cost, profit, and return comparisons
- Internal Rate of Return (IRR): frequently used, yet often misinterpreted. Are the modified internal rate of return or the profitability index valid alternatives?
- Discounted cash flow (DCF), present value, future value, annuity, and amortization schedules; should intra-year interest payments be included, and how should taxes be taken into account?
- Net present value (NPV): usually a good compromise between effort and accuracy, provided the cost of capital (WACC) has been determined correctly
- The net present value method in detail: handling different investment outlays, useful lives, and pre-investment lead times
- Detailed case study on the net present value method: should a new machine replace the existing process? How significant is the interest rate risk?
- Complete financial plans: taking financing into account can produce surprising results
- Taking risk into account: sensitivity analysis, scenario or driver-based models, cost of capital, decision trees, and/or Monte Carlo simulation
- The business plan as a structural guide
- Planning assumptions: dealing with cognitive biases and the influence of heuristics
- Lessons learned: from investment proposal to post-investment review – a practical example
Target group
The Investment Controlling seminar is aimed at controllers as well as project managers and project team members involved in investment projects. No specific prior knowledge is required, as each topic is explained from the ground up.
+49 170 7420 673