Trusted By:
2 Part Course  | 
Book places now

The Structuring of Leveraged Transactions

2 Part Course  |  An advanced course for those needing to understand the commercial and structuring aspects of LBOs & MBOs

Corporate Credit Analysis and Debt Structuring Course

A one-day course presented in two half-day live webinars

  • The trainer has deep experience of private equity having advised on the first MBO over 30 years ago
  • The trainer has had exposure to private equity from a global perspective having presented programs to KPMG, EY, Investment banks, Commercial lenders and PE firms in Europe, Africa, North America, Asia and Australasia
  • The trainer’s career also includes stints in commercial and investment banking, accountancy, tax and law thus providing insight from a wide range of perspectives
  • Through the trainers' wide experience, he has developed a 360 degree perspective of private equity from the perspective of lawyer, advisor to PE firms, advisor to senior and junior debt providers and from a legal perspective
  • Through the trainers' role as a Senior Consultant to Grant Thornton and as a Senior Advisor to KPMG Finland, he retains exposure to PE transactions

  • The Sponsor’s View – PE firms approach deals from a very different perspective to corporates. The programme identifies the three main value drivers and other ways in which PEs generate value (value creation 102) & goes on to describe the criteria used to evaluate deals
  • Structuring the Deal – the programme provides a framework or toolkit for participants (from all jurisdictions) to identify the critical structuring issues that the lenders and sponsors need to address in structuring the deal. Participants will be able to use this toolkit to determine how to structure deals in any jurisdiction
  • Debt Financing Options – There are a very wide range of funding instruments used in LBOs but not all are suitable in every deal (e.g. second lien is used only in very large syndicated LBOs). Participants will learn about the various instruments, used in PE transactions
  • Debt Capacity and Profiling – the objective in an LBO is to optimise, not maximise, the debt. The programme will provide guidance with case studies and models, on how this can be achieved using the various instruments in LBOs
  • The Lenders’ View – debt lies at the heart of any LBO and the programme will provide insight into the key issues lenders consider in approaching the debt package. Not all lenders are the same, institutions, banks and direct lenders all approach matters from differing angles and it is essential to understand these differences
  • Equity Financing – The key issue for management and the PE. The programme includes a model which illustrates how the parties structure the ‘Sweet Equity” and the “Institutional Strip”. Equity ratchets are also discussed and illustrated with a Model
  • Management – studies have shown management team, and not the debt, is the key ingredient to a successful deal. The programme describes the essential attributes PE firms look for in the management team

The programme will make use of a case study which will cover various aspects covered in the content

Part One

Private Equity and how it creates value

  • The three key stages of Private Equity value creation
    • The Acquisition
    • Operations - Extracting and boosting value during ownership
    • Exit - How to exit successfully
  • PE 101 Value creation: The traditional PE value creation model
    • The three key value drivers
  • PE 102 Value creation: Additional methods for enhancing value
    • Liquidity events pre-sale
    • Using junior debt to optimise the capital structure
    • Leveraging the fund to boost returns
    • Vendor loans – how they enhance value
  • Selecting the investment - the 5 critical issues to sponsors
  • Liquidity events (exits)
    • Hard exits vs soft exits

Structuring the deal – the key issues for Lenders & Sponsors

  • Deriving the funding structure
    • Funding sources and uses
  • Security/collateral generally
    • The tension between lenders and sponsors
  • Ranking & priority of senior vs junior debt
    • Contractual vs Structural subordination
  • Tax issues
    • Group tax relief
    • Thin cap rules
    • Transfer pricing

Structure and key terms for Private Equity funds

  • Review of typical (Luxco) fund structure
  • Investment period (how long)
  • Preferred return (rate, calculation)
  • The carried interest (European vs US approach)

Part Two

Funding sources (summary key aspects)

  • Senior debt: key facilities & issues
  • Junior debt instruments
  • Second Lien
  • Mezzzanine
  • PIK
  • High Yield Notes
  • Senior and Junior
  • Unitranche / Direct lending
  • Classic
  • Bifurcated

Developing the optimum financial structure

  • How to optimise the capital structure
  • Using cash flow to gauge debt capacity
  • Using EBITDA multiples to measure senior and junior debt capacity
  • The role of junior debt in the capital structure
  • Debt profiling - striking the right balance between amortising and bullet tranches
  • Impact on leverage
  • How it affects ‘headroom’ (i.e. the ‘cushion’)
  • How different lenders approach this – role of reinvestment risk

Negotiating the debt package (lender’s perspective)

  • Lender’s approach
  • The various ‘scenarios’
  • Role of the Credit agreement

The trainer is a consultant, public speaker and author with expertise in private equity, debt advisory, restructuring and infrastructure. He is a Senior Advisor to KPMG Finland, a Senior Advisor to Reorg EMEA Covenants, the leading provider of information to the European High Yield community, and a Senior Consultant to Grant Thornton UK.

Training programmes are provided to a wide range of blue-chip clients in Europe, Africa, the Middle and Far East, North America and Australasia. In-house clients include banks (BNP Paribas, Société Générale, ING, Barclays Capital, Bank of China, RBS, SEB); lawyers (Baker & McKenzie, Skadden Arps, Sullivan & Cromwell, Cadwalader, Latham & Watkins, Weil, White & Case); advisory firms (Lazard, PWC, M&A International, KPMG, EY, Deloitte); PE firms (Cinven, Advent, Barings Asia, Waterland); corporates (Siemens, Airbus, Turkcell, Candy Crush, Gunvor, Statkraft) and governmental bodies (the UKLA, the EBRD, the ECGD, Omani Oil Corp.)

He qualified in South Africa both as a Chartered Accountant, with Deloitte, and as a lawyer with Hofmeyr where he was involved in structuring a number of high-profile project financings including BMW 3 Series, Ford Sierra, GM, Sappi and Mondi.

When he moved to London and joined Lazard Brothers as a corporate finance executive he was involved in a wide range of public and private transactions. Subsequently he joined Hoare Govett as an assistant director where he acted as an advisor to smaller listed companies and was involved in several syndicated Euro-Equity Initial Public Offerings.

In 1991 he joined ABN Amro’s cross border M&A team prior to being transferred to MeesPierson Corporate Finance as a Director in Cross-Border M&A where he was also involved in a number of deals in Central Europe. During this time he was a member of the EU-PHARE programme and advised the Estonian government on their privatisation programme.

He is the Programme Director at the City Business School, London, for Infrastructure Finance for the M. Sc. programme in Business Administration and Finance.

He is a member of the Institute of Chartered Accountants in England & Wales and the South African Institute of Chartered Accountants. He completed a BA and an LLB at the University of Natal and a B. Compt. (Hons) at UNISA.

Number of places:
Part 1
Number of places:
Part 2


Per participant per part
Discounts available for multiple place booking find out more

Have this course presented In-House

  • On a date, time and in a location of your choice
  • Topics expanded or deleted to your bespoke requirements

Have this course pre-recorded

  • Full course recording edited exclusively for your company
  • Files converted to enable housing on your LMS

We use cookies

In order to show you courses tailored to your profession we use cookies.

To enjoy all the features of this website please accept.