LBO and Credit Modeling

Short course

In New York (USA) and London

Save 23%
£ 725 + VAT

Description

  • Type

    Short course

  • Level

    Intermediate

The aim of this new course is for participants to build a (tutor led) LBO model in class. This model will be fully functioning and flexible. You must be comfortable with the content of the Mastering Excel course to attend and fully benefit from this day. Firstly participants will learn the rationale for leveraged buyouts. A good LBO (ability to pay) model will assess whether a proposed transaction structure can be supported by the free cash flows of the business.

By the end of the course, participants will have the tools and techniques to be able to:
Understand how operating and financial leverage work
Identify the value drivers of a LBO
Determine the financing possibilities
Construct an LBO model
Identify interesting LBO candidates from an IRR or money multiple perspective.

Facilities

Location

Start date

London
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Start date

On request
New York (USA)
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Start date

On request

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Reviews

Subjects

  • LBO modelling
  • Excel

Teachers and trainers (1)

TBC TBC

TBC TBC

TBC

Course programme

Revisiting the basics of LBOs
  • How do LBOs work?
  • What makes a good LBO candidate?
  • Types of LBO: MBO, MBI, BIMBO, BOMB, IBO, SBO, LBU
  • Which participants are involved?
Maximizing leverage
  • Operating leverage versus financial leverage
  • Practical implications.
LBO analysis as a transaction valuation technique
  • Key constituents of a leveraged transaction
  • Comparison of LBO valuation with other valuation techniques.
Financing an LBO
  • Senior debt (Term A, B and C) and second lien
  • Junior debt sources including high yield and mezzanine
  • Amortizing and bullet repayment loans
  • Alternatives to ordinary equity: shareholder loan, preference shares
  • PIK instruments, warrants, yield enhancing structures.
LBO model in Excel of a case company
  • Integrated model as a base
  • Importance of financial forecasting
  • Control premium for public-to-private transaction
  • Entry and exit multiples
  • Sources and uses of funds, including banking and advisory fees
  • Building cost assumptions for all the elements of the capital structure
  • Detailed cash flow statement
  • Debt repayment schedules including a cash sweep accelerator
  • Revolving Credit Facility
  • PIK instruments
  • Building and interpreting the multiple of money and IRR calculations, including dealing with warrants
  • Sensitivity tables.

Additional information

At Fitch Learning we consistently receive excellent customer feedback - 94% of our participants recommend a colleague attend the same course. With 25 years’ experience, our interactive training methods are tried and tested. Our workshops are small – with no more than 16 people – to ensure your learning experience is as interactive and personal as possible. They are taught through up-to-date , region-specific case studies and exercises so you can apply the analytic skills you learn as soon as you are back at your desk. If you register a place 8 weeks or more in advance of the course, you can save 10%.

LBO and Credit Modeling

£ 725 + VAT