CPD Training: Introduction to Private Equity And Management Buy Outs

INTRODUCTION TO DEBT AND PRIVATE EQUITY BACKED MBOS AND LBOS (LEVERAGED BUY OUTS) – ONE DAY

About CPD course training provider FTA Ltd

FTA Ltd is a provider of CPD training courses to accounting, law, finance, banking and other financial services professionals. See cpd-courses.org for more information.

Introduction

This course is designed for staff for example working with corporate finance advisors, banks or private equity firms. The course allows participants to understand the work of the firm and set their own work in context – any jargon participants are encountering is explained clearly and simply. Participants are given ample opportunity to ask questions in a supportive and non-threatening environment. The financial instruments that are used (such as mezzanine finance plus other debt and equity instruments) will be examined in detail and the commercial aspects of buy outs discussed at a high level. Participants will also learn by working through exercises on structuring buy outs.

Session 1: Background

• Where does the money come from?

• Different types of transaction and differing structures

• Investment time frames and hurdles

• How are investors rewarded?

• How is success measured?

• De-mystifying jargon

Session 2: Structuring a buy out

• Senior debt

• Mezzanine finance

• Institutional equity

• Vendor notes

• Management equity

Session 3: Pricing a buy out

• Valuation of target company

• Debt considerations

• Use of P/E ratios

• Private equity’s IRR

Session 4: Achieving a successful buy-out

• Determining debt capacity

• Negotiating equity stakes – management’s “Envy Ratio”

• Key criteria for success

• Due diligence considerations

Session 5: Legal considerations

• Key documents

• Acquisition of the target

• Key protections for private equity

• What if the business struggles?

• How is the decision made to exit?

• What if a key manager leaves?

• When is a minority stake not a minority stake?

• Debt facilities

Session 6: Achieving exit

• Trade sales vs. flotations

• Secondary buy-outs vs. recapitalisation

Course conclusion

• How buy outs work

• How deals are structured

• Risks and rewards to different parties

• What investors are looking for and how they can best get it

More details regarding CPD training company FTA Ltd

For more details regarding CPD courses from FTA Ltd please see the company’s website cpd-courses.org.