New York City (NYC)

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Who should attend this course?

  • 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

Course details

LBO Modeling

This program aims to teach delegates how to structure an LBO and model the financial impact of the financing structure. This session will concentrate on understanding the implications (both modeling and deal) implications of the finance structuring.

 

Learning outcomes

  • General overview of a levered transaction: what it is and 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 – amortization of debt issuance fees
  • Dealing with tax losses carried forward
  • Calculating cash flows for debt servicing
  • Setting up a repayment schedule for individual debt instruments
  • Making accelerated payments using a cash sweep mechanism
  • Modeling the revolving credit facility
  • Dealing with the circularities created by the interest calculation
  • Dealing with PIK interest
  • Calculating credit ratios
  • Calculating and interpreting returns to the equity investors
  • Calculating and interpreting returns to mezzanine investors
  • Sensitizing the outputs of the analysis
  • Modeling different operational scenarios using the OFFSET function

 

 

 

"Using AMT Online (AMTO) was excellent as it allowed me to work through the course material at my own pace. AMT Online was very easy to use and navigate through." ~ graduate, leading business school

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Course materials

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

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