An intensive, 3-day programme, featuring:
- Identifying suitable LBO candidates.
- Understanding LBO structuring.
- Analysis of the debt structure including documentation.
- Use of Holdcos and Opcos.
- Addressing financial assistance.
- Modelling the cash flows.
- Computing the credit ratios.
- Mezzanine and non-senior debt financing, warrant calculation.
- Other hybrid instruments such as Holdco PIKS.
- Senior debt structure: margin grid, loan life, sweep, working capital clean down.
- Whole business securitisation.
Aims and Objectives
The aim of this course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures. Delegates will be introduced to international practice in executing leveraged transactions, which will include due diligence, accounting issues and valuation techniques. Case studies will include opportunities to structure leveraged finance transactions.
By attending the course participants will:
- Examine the principles involved in structuring leveraged buy-out transactions;
- Develop their understanding of modelling the cash flows in a leveraged transaction involving mezzanine financing techniques;
- Improve their appreciation of the structuring issues in a LBO transaction;
- Understand how LBO investors are remunerated;
- Obtain a greater awareness of how to structure and finance mergers and acquisitions generally;
- Appreciate what Holdcos and Opcos are used for;
- Understand how to structure a highly leveraged transaction including documentation.
The course will use real life case studies and examples of transactions to develop participants’ understanding of the techniques being discussed. Most of the case studies are designed to encourage delegates to think more closely about the issues involved and discuss them as a group. Some case studies will require participants to bring laptops to manipulate Excel spreadsheets. The course is designed to improve the participants’ skills in acquisition analysis, structuring and valuation. Many examples will be provided to illustrate the key principles and to develop participants’ understanding of real-life applications.