The trainer is a qualified chartered accountant, who spent several years in corporate finance post qualification. He then spent 18 years in the investment management industry as an analyst/fund manager with Threadneedle Asset Management, a director and head of UK Equities at Scottish Widows Investment Partnership as European, then Global Head of Equity Research at HSBC Asset Management. He ran various types of retail and wholesale funds and produced research on companies in Europe and on a global basis. He developed valuation and research processes and managed teams of European and global analysts and fund managers.
Since leaving the investment management industry the trainer has managed the investment management and investment banking operations of a UK based training company developing programmes for clients as diverse as HSBC, Morgan Stanley, Deutsche Bank, Citigroup, Allen & Overy, JP Morgan, Barclays Bank, Barclays Wealth, Morgan Stanley Investment Management and Schroders. He has managed major graduate programmes for investment banking and investment management clients, training graduate to managing director level participants and advising clients on their training requirements for accountancy, corporate finance and valuation, investment management and private wealth training.
The LBO process
Valuing the target
Case Study I: Participants model the stand alone valuation of the target using historic data and equity research
LBO Modelling Overview
Case Study II: Participants use the stand alone valuation of the target to complete and LBO model
Assessing debt capacity for LBO financing
Case Study III: Modelling the debt capacity of the target using multiple and credit analysis
Capital providers and their typical characteristics
Case Study IV: Modelling a more complex capital structure with various scenarios calculating exit value and IRR for each of the capital providers
Assessing value creation in LBO transactions – APV analysis
Case Study V: Where has value been created, modelling APV analysis for an LBO transaction
This Advanced LBO Modelling course covers the key elements of modelling in an LBO analysis. Participants will value the target business using historic data and available equity research.
The valuation process will incorporate absolute and relative valuation techniques. Once the target business has been valued, participants will be introduced to LBO analysis and construct an LBO model.
The LBO modelling analysis will be developed by assessing the debt capacity of the business to determine the range of capital structures available for the transaction and how credit analysis is used in the LBO modelling process.
The participants will then cover more complex LBO instruments such as warrants and PIKs and how to calculate returns to each of the equity and debt providers.
Participants will model a more complex capital structure and calculate exit values and the IRRs generated by each investor. Using the integrated model participants will then analyse various scenarios (management case, base case, payout case) to derive the optimum financing structure taking into account the financial constraints of each investor.
The participants will undertake an adjusted present value (“APV”) analysis to determine where value has been created in the LBO transaction, using an APV model and finally look at recovery analysis for a failed LBO transaction.
Case Study: The participants will use a variety of case studies and exercises during the two days, based on publicly quoted and generic businesses.
Participants will be required to bring a laptop and a calculator to the course.
What Redcliffe’s clients are saying about the course
“A practical course with lots of practice of real modelling”
“A good combination between theory & practice by an experienced trainer”
“I learnt a number of new methods & approaches to modelling”
“Detailed course into basics LBO, DCF and other valuation techniques and looking into capital structures. Warrants + options sections was very useful”
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