Virtual Classroom

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Who should attend the course?

  • Investment Officers and Investment Committee Members
  • Private equity, Venture Capital and Hedge Fund Investment Managers
  • Bankers, Investment Bankers and Security Analysts
  • Private Bankers and Wealth Managers
  • Structured finance professionals
  • Lawyers wishing to understand modern finance
  • Risk Managers

Course details

LBO Valuation


The Private Equity Masterclass is a brand new course being offered for the first time in the AsiaPacific region. Book now at the special price of USD2,000 (normal price USD2,800).


A strong understanding of private equity and deal structuring has become a necessity for most finance professionals. Private equity or venture capital is needed to fund growth strategies for most financial organizations, and has an integral role to play in M&A and LBOs.


This 2.5 days Masterclass will cover several deal structuring techniques relating to private equity, venture capital and buyout deals. Deal structuring issues and solutions will be illustrated and discussed for various stages and components of private equity transactions. Hands-on exercise and real life examples will be used to maximize clarity of understanding. If you are interested in advanced LBO modeling, this is the course for you.


AMT Training have been successfully running the Private Equity Masterclass in Frankfurt and London for over 15 months. 


Delegates revisit the 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, delegates establish how much a financial buyer could pay for the target company. Delegates then build a simple LBO model.


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

Debt Structuring, Capital Structure, Rating and Financing

Delegates revisit the key concepts of debt structuring as well as implications of structural vs. contractual subordination. Many life case studies and exercises will supplement the debt structuring. Following the debt structuring delegates will spend time on capital structure and credit implications. The focus will be on understanding the implications of probabilities of default, risk and optimising risk from a debt issuer as well as a debt investor perspective.


In addition delegates will learn about capital structure and rating of a company, with a particular focus on IG versus high yield debt instruments. As part of this course the delegates will structure an LBO and model the impact of the new financing structure. This session concentrates on understanding the capital structure and rating implications of a new finance structuring.


Learning outcomes

  • Debt structuring
  • Covenant vs. cash flow based debt capacity
  • Structural vs. contractual subordination
  • Capital structure decisions in the context of corporate strategy
  • What is capital structure analysis?
  • The impact of financial leverage on earnings and returns
    • Using ratios to measure leverage
    • Leverage increases earnings volatility
    • Capital structure in the context of WACC
    • Impact of leverage on EPS and the importance of the use of debt proceeds
    • Using leverage to increase ROE
  • The impact of financial leverage on corporate value
    • The value of the tax shield on interest expense
    • Does an optimal capital structure exist?
  • Capital structure and rating analysis
  • Ratio analysis for credit ratings
  • Investment grade vs. high yield
  • Key items of terms sheets
  • The concept of cash flow lending
    • The lender’s perspective: risk, return and exit routes
  • Advanced structural vs. contractual subordination - case studies
  • Financial instruments used in IG and 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

Complex LBO Modeling and Sponsor Management

Delegates learn about financial sponsors, their investment perspective, exit strategy and how to best decide on a value maximising exit strategy. Delegates will also look at different financing products to be used in the LBO plus a suitable management entry vs. package. Finally, delegates will learn how to assess the return to sponsors vs. the return to management as well as providers of financing (such as mezzanine fund providers).

Learning outcomes

  • Sponsors and their investment perspective
  • Overview of different types of financial sponsors
  • Sovereign wealth funds - how do they differ from more traditional sponsors?
  • Deal and market update - what is currently happening in the sponsors' space?
  • Sponsor exits
    • Timing considerations
    • Routes to exit
    • Advantages and disadvantages of full exit vs. staged exit
    • Dual track vs. other combined or "hybrid" exit routes
    • Lessons learned from "exits gone wrong"
  • Sponsor return analysis
    • IRR vs. money multiple
    • IRR vs. MIRR vs. XIRR
  • Capital structure and rating implications for the sponsor
  • The concept of cash flow lending
    • The lender’s perspective: risk, return and exit routes
  • Structural vs. contractual subordination
  • Financial instruments used in sponsor transactions
  • Key pros and cons of various leveraged instruments from a sponsor perspective
    • 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
  • Hands-on analysis of all items discussed
    • Sources and uses of funds table
    • Ownership structure
    • Management and mezzanine entry vs. exit
    • How to analyze and negotiate warrants
    • Goodwill calculation - sponsors view on goodwill
    • Deal adjustments, including amortization of debt issuance fees
    • Cash flows available for debt servicing
    • Repayment schedules for individual debt instruments
    • Acceleration of debt payments using a cash sweep mechanism
    • RCF - how can the sponsor decide the correct amount to be provided by the banks
    • PIK interest
    • Sensitizing the various chosen debt instruments
    • Sensitizing the capital structure
    • Detailed return analysis to sponsor, management and mezz provider

LBO Modeling Issues

Delegates learn how to build complex components of LBO models. Delegates will gain a thorough understanding of why a component is used in practice, how it works and how to model it.

Learning outcomes

  • Leveraged recapitalization
  • Multiple capital structure scenarios
  • Management ratchets
  • Incorporate a revolving credit facility in the sources and uses of funds
  • Date related IRRs (XIRR)

""The virtual classroom was engaging and it felt like a classroom training"" ~ HR, International Investment Bank

What is a Virtual Classroom

Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.

Related courses


We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.