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This practical computer based 2-day course run by a former senior City banker explores the LBO modelling techniques. You will start with valuing the target business and apply LBO analysis by assessing the debt capacity in order to determine the range of capital structures available for the transaction. Through the use of more complex LBO instruments such as warrants and PIKs you will calculate returns to each of the equity and debt providers, model a more complex capital structure and calculate exit values and the IRRs generated by each investor. Various scenarios including: management, base and payout case will be analysed to derive the optimum financing structure taking into account the financial constraints of each investor. Finally, you will undertake an adjusted present value - APV analysis, to determine where value has been created in the LBO transaction and look at a recovery analysis for a failed LBO transaction. All the concepts are presented through the analysis of the real life case studies and practical computer based exercises. By the end of the course you will be able to: Assess the debt capacity of a company in order to determine the capital structure Apply credit analysis to the LBO modelling Calculate returns to debt and equity providers through the use of warrants and PIKs Calculate exit values and IRR Analyse management, base and payout case to derive maximum financing structure Apply adjusted present value APV analysis to determine where the value has been created Use recovery analysis for a failed LBO transaction Prerequisites: Previous LBO knowledge is not required as the fundamentals will be explained before moving on to more advanced concepts but participants should be familiar with Excel. Delegates are required to bring a laptop and a calculator. If needed a laptop can be provided for an additional fee.  See below for more |
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