Structuring an LBO

This Structuring an LBO course can also be presented face to face in-house for your company or via live on-line webinar.

A 2.5 Hour Seminar

Structuring an LBO Course Content:

The elements of multi-layered financing:


  • Senior debt
  • Mezzanine / high yield debt
  • PIK finance
  • Vendor loan notes
  • Institutional equity


  • Unitranche
  • 1st / 2nd pound out
  • Debt / equity mix

Structuring the Transaction

  • Target IRR
    • Assessing risk / return
  • Assessing debt capacity
    • Forecasting cash generation
  • Senior / mezzanine debt mix
    • Judging asset values
  • Forecasting exit values

EXERCISE:  Plastic Products

Based on inputs provided, attendees structure the finance of a buy-out.  Answers are discussed to identify the critical elements in the financing

EXERCISE: Structuring the Buy Out of Manchester United F.C

Answers are compared with the real-life outcome.

Background of the Trainer:

The trainer has over 40 years of City experience, encompassing banking, investment banking, M&A, and corporate finance at Citicorp, early stage investment, and corporate advisory work.  He is a director of several companies and chairman of a fast-growing software company quoted on AIM.

Besides having been a visiting lecturer at the City of London (now Cass) Business School, he has 20 years’ experience of delivering in-house training to leading banks and investment banks in the UK, Europe, Africa, Asia and the USA, and public courses in UK, Europe and Asia covering M&A, company valuation, investment banking, corporate finance and credit analysis.

Structuring an LBO Course Summary:

The use of leveraged financing has proliferated over the last 30 years to the point that it has become a common feature of corporate acquisitions, particularly when structuring an LBO. Multi-layered financing is not without risk and market appetite for transactions with a high degree of debt has varied over time. However, a properly conceived financing that takes into account the reasonable expectations for future cash flow can, and has, resulted in many successful transactions. The elements that need to be taken into account include both entry and exit price as well as the terms of senior and subordinated lending. The course considers these various points and illustrates through exercises and case study how success can be achieved in structuring an LBO.

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13 September 2018