London

Venue and transport links

course-venue-pic
  • Aldgate East
  • The White Chapel Building
    5th floor
    10 Whitechapel High Street
    London
    E1 8QS
  • View venue
"I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do." ~ research analyst, global financial institution

Who should attend the course?

Experienced Finance Professionals

Working for a leading financial institution means you will be working in a highly competitive environment. In order to stay ahead you will need to keep pace with your colleagues. AMT’s public courses ensure that you maintain and enhance the knowledge and skills you need to continuously deliver a professional level of service to your clients. Hence becoming more effective in the workplace and helping advance your career. Learn or refresh your skills in financial statement analysis, financial modeling and valuation, and stay ahead of the curve.

 

What courses complement this one?

Structuring the Deal

To get a comprehensive understanding of how to successfully structure a transaction, study over 5 days:

 

 

Book all 5 courses

Course details

LBO Modeling

Delegates learn how to structure an LBO and model the impact of the new financing structure. This session concentrates on understanding the implications (both modeling and deal) of the finance structuring. Delegates complete a fully integrated model with an income statement, balance sheet and cash flow statement.

 

Learning outcomes

  • General overview of a levered transaction: basic principles
  • Drivers of value creation in a levered transaction
    • How leverage increases the return on equity
    • What makes a good LBO candidate
  • The concept of cash flow lending
    • The lender’s perspective: risk, return and exit routes
  • Structural subordination
  • Financial instruments used in levered transactions
    • Senior debt (revolving facility, terms A, B and C)
    • Second lien
    • Mezzanine loans
    • High yield bonds
    • PIK notes
    • Preferred shares, shareholder loans and vendor loan notes
    • Ordinary equity
  • Build a full LBO model from a template
    • Main deal assumptions: focus on cash flow drivers and how to sanity check preliminary assumptions
    • Sources and uses of funds table
    • Ownership structure
    • Goodwill calculation
    • Creating the opening balance sheet
    • Deal adjustments, including amortization of debt issuance fees
    • Tax loss carry forwards
    • Cash flows available for debt servicing
    • Repayment schedules for individual debt instruments
    • Acceleration of debt payments using a cash sweep mechanism
    • Modeling the revolving credit facility
    • Circularities and the interest calculations
    • PIK interest
    • Credit ratios
    • Calculation and interpretation of returns to the equity investors
    • Calculation and interpretation of returns to mezzanine investors
    • Sensitizing the outputs of the analysis
    • Modeling different operational scenarios using Excel functions

What will you receive on the course?

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:

 

  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to AMT Online (AMTO)
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files