New York City (NYC)

Venue and transport links

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  • 112 W. 34th Street, 18th floor
    Manhattan, New York, NY 10120
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"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

Who should attend this 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?

Advanced Financial Modeling

To get a comprehensive understanding of Advanced Modeling, study over 3 days:

 

 

Book all 3 courses

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

 

 

 


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