How to Fund your Business: Equity, Debt, Unfund

Master Private Equity Leveraged Buyouts LBO; modelling, analysis, deal execution, documentation, exit strategies

Created by: John Colley
Investment Banking | Business| Entrepreneurship | Finance

What Will I Learn?

• Understand the foundational structures and strategies of private equity funds.
• Define leveraged buyouts and their significance in corporate finance.
• Analyse key characteristics and typical frameworks of LBO transactions.
• Evaluate the RJR Nabisco LBO as a pivotal case study in LBO history.
• Assess the impact of economic cycles and financial foundations on LBOs
• Identify and describe the roles of key participants in LBO transactions.
• Utilise essential financial tools and models specific to LBO analysis.
• Rank LBO financing instruments by cost, risk, security, and return metrics
• Explore classic and modern capital structure theories within LBO contexts.
• Examine esoteric and complex debt structures used in LBO financing
• Optimise LBO capital structures to enhance deal stability and profitability.
• Assess the role and impact of covenants in LBO financing strategies.
• Understand debt capacity and leverage limits within LBO economic frameworks.
• Learn the step-by-step private equity deal process in leveraged buyouts.
• Explore the roles and decision-making processes of investment committees in LBOs.
• Introduction to LBO modelling, emphasising its purpose and application.
• Delve into advanced LBO modelling techniques for comprehensive transaction analysis
• Step-by-step analysis of LBO transactions, focusing on valuation and debt structuring.
• Explore management and employee equity incentives and their implications in LBOs.
• Understand the documentation crucial for successful LBO transactions.
• Manage LBO transactions from investment monitoring to value creation strategies.
• Strategically plan and execute exit strategies for LBO investments.
• Detailed exploration of the IPO process as an exit strategy in LBOs.
• Navigate the complexities of selling shares post-IPO in leveraged buyouts.
• Understand third-party sales in LBOs, assessing process advantages and challenges.
• Explore secondary buyouts, understanding their process and market implications.
• Delve into management buyouts, focusing on strategies and participant roles.
• Navigate partial exits strategies like recapitalisations and tag-along rights in LBOs
• Consider the implications and processes of liquidations in leveraged buyouts.
• Debate ethical considerations and controversies surrounding leveraged buyouts.

Requirements

• Basic Understanding of Finance: Familiarity with financial statements and investment concepts.
• Interest in Corporate Finance: A keen interest in learning how companies are acquired and managed.
• Access to Financial Calculator or Software: Useful for exercises and case studies involving financial analysis.
• Prior Business or Economics Study: Helpful but not mandatory; basic economic principles are beneficial.
• No Advanced Mathematics Required: The course is accessible to beginners with general math skills.

Target audience

• This leveraged buyout course is designed for a range of learners interested in the intricate world of corporate finance, especially those focusing on private equity transactions. Here’s a detailed description of the intended learners: Finance Professionals: Ideal for analysts, associates, and managers in finance sectors seeking to deepen their understanding of LBOs and their applications in private equity. Business Students: Suitable for undergraduate and graduate students specializing in finance or business who wish to acquire a practical understanding of how LBOs work. Aspiring Private Equity Investors: Entrepreneurs and individuals looking to enter the private equity industry will find the detailed case studies and financial modeling skills particularly valuable. Corporate Executives: Senior managers and executives considering leveraged buyouts as a growth strategy or exit planning will benefit from the strategic insights into managing such transactions. Investment Enthusiasts: Individuals with a strong interest in the mechanics of major financial transactions and corporate restructuring efforts will gain comprehensive knowledge from this course. This course is tailored to equip these learners with the tools and knowledge to analyze, evaluate, and execute leveraged buyouts effectively, enhancing their competencies in complex financial transactions.