Course description
Transaction Comparables and LBO Analysis Fundamentals (1 day)
Transaction Comparables
Participants are introduced to preparing a transaction multiples matrix using LTM earnings. The rationale and components of control premium and its impact on valuation are discussed. A comparable transaction analysis is performed on the case industry.
LBO Analysis Fundamentals
Participants are introduced to the basic concepts underlying leveraged buyouts. The session starts by establishing why private equity firms can create value through leveraged buyouts and how the levered valuation fits into the valuation roadmap. Using a simple free cash flow forecast, participants establish how much a financial buyer could pay for the target company. Participants then build a simple LBO model.
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Upcoming start dates
Suitability - Who should attend?
- New hires who have joined the firm late and missed the in-house program
- Individuals looking to fill a knowledge gap
- Experienced bankers looking to refresh their technical skills
- Teams employed in financial strategy roles from non-banking corporations
- Graduates preparing to interview for a role in the finance sector
- Students at business school and looking for a career in finance
Prerequisite
A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:
Financial Statement Analysis
- Accounting Fundamentals, the Income Statement and Working Capital
- Non-Current Assets, Cash Flow Statements, Debt and Equity
Financial Modeling
- Financial Modeling - Fundamentals
- Financial Modeling - Cash Sweep and Troubleshooting
- Financial Modeling - From Scratch
Training Course Content
Transactions Comparable Learning Outcomes
- Difference between trading multiples and multiples from precedent transactions
- Selection of transactions and information gathering
- Change of control issues
- Share capital and equity linked instruments
- Pensions
- Poison pills
- Control premium and synergies
- Bottom up calculation of enterprise and equity value multiples
- Practical issues with transaction comparables
- Analysis and summary output
LBO Analysis Fundamentals Learning Outcomes
- What an LBO is and how it can create value
- LBO valuation as an alternative valuation methodology
- Characteristics of suitable LBO candidates
- Estimating cash flows available to capital holders
- Estimating debt capacity
- Simplified debt/equity split for entry capital structure
- Sources and uses of funds
- Debt structure
- Estimating the exit value
- Calculating the IRR
- Sensitizing the model
Course delivery details
While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:
- e-binder
- laminated summary sheets
- 24/7 access to DELTA online learning environment
- class recordings
- course notes
- quizzes
- electronic homework/study files
Reviews
Average rating 4.7
Really enjoyed doing the model alongside the demonstration today, felt I got a good understanding.
The trainer was engaging and the content interesting and useful.
Very engaging and well-delivered.