Course dates
Course overview
'Private Equity and Leveraged Transactions' is designed to review critical aspects of private equity. Six key concepts will be emphasised:
- The opportunity
- The participants
- Transaction valuation
- Transaction structuring
- Transaction funding
- Transaction risks: identification and mitigation
The course will include the analysis of several private equity deals and leveraged buyouts, including a series of Asian transactions.
Summary of course content
- An analytical "toolbox" for assessing the attractiveness of potential private equity transactions
- A suite of valuation methodologies for assigning values to potential private equity opportunities
- Knowledge of the variety of financing instruments and structures for funding private equity transactions
- Knowledge of the investor types providing debt and equity funding for private equity deals
Methodology
The course will be centered around a series of cases and conceptual notes. A Socratic approach, with active participation and exercises, will be used.
Prerequisites
Delegates should have a basic knowledge of accounting, financial analysis, and forecasting. The workshop will require a high level of commitment in terms of class participation and group contribution.
Who should attend this training course?
- Corporate management teams
- Corporate developers
- Investment bankers
- Venture capitalists
- Accountants
- Lawyers
Supporting publications
DAY ONE
Registration commences at 8:30
Programme runs from 9:00 - 5:00 daily
Introduction
Fundamental analysis in private equity contexts and valuation
- Transaction types: LBOs, MBOs, "growth equity"
- Target screening
- Key industry
- Sector-level characteristics
- Key firm-level characteristics
- Business strategy assessment
- Business mix, growth goals
- Margin targets
- Capital investment
- Agency problems
- Operating risk management
- Financial performance assessment
- The Troika: growth, margins and capital use
- Financial strategy assessment
- Cash generation and capital use
- Historical capital structure, target capital structure, current capital structure
- Current funding modes and sources: debt vs. equity / fixed vs. floating
- Financial risk management
- Does the financial strategy support the business strategy or vice-versa?
- Post-closure sources of value-added
- Forecasts: debt capacity and future cashflows
- "Topline" revenue growth rate projections
- Forecasting margins
- Forecasting capital expenditures and other capital outlays
- Forecasting debt service burdens
- Levered equity cashflows
- Return requirements and discount rates
- Target IRRs
- Other return measures
- Exit strategies: "harvesting"¡¨ returns
- Strategic buyers
- Financial buyers
- Public market exit
- Private equity in Europe and Asia
- The role of strategic corporate investors
- Public market funding for highly-leveraged companies
- Private equity operations of diversified public firms
- "Growth equity"
- Sources of value in private equity
- Target valuation
- Valuation methodologies
- "Entry" pricing vs. expected "exit" valuations
- Net asset value
- Price / book value
- Enterprise value / replacement cost
- Comparable transactions
- Operational metrics
- Discounted cashflow approaches
- Debt capacity and debt / EBITDA ratios
Case studies:
-
Private equity framework
-
A potential LBO: Marks & Spencer PLC
-
The first Japanese LBO
-
GOME: strategic partnership between GOME and Warburg Pincus
-
Equity valuation matrix
-
Weiqiao textile: LBO and sum-of-the-parts analysis
DAY TWO
Executing private equity opportunities - transaction structure
- Debt funding
- Bank and other senior debt
- Bridge funding
- Subordinated and other long-term debt finance
- Securitisation and structured finance
- Credit analysis and credit ratings
- Equity-linked debt
- Mezzanine funding
- Convertible securities
- Equity funding
- Private equity, LBO and venture capital managers
- Private market
- Use of funds: capital structure and returns
- Debt / equity mix
- Equity-linked securities and dilution impacts: warrantswith-debt, convertibles, pay-in-kind securities
- Transaction process
- Due diligence, deal documentation and structuring
- Exit strategies: "harvesting" returns
- Strategic buyers
- Financial buyers
- Public market exit
- Risk management in private equity
- Liability management
Case studies:
- Progress power
- Sources of debt financing: leveraged loans and high yield bonds
- Credit analysis and ratings
- Bond ratings systems
- S&P medians
- Mezzanine debt and mezzanine funds
- Stapled financing and other committed financing
- ACAS business loan trust 2004-1
- Due diligence checklist
DAY THREE
Funding private equity investment - investors
- Private equity as an asset class
- Purpose in a portfolio: risk, returns, liquidity, time horizons, taxes
- Private equity strategy types
- Leveraged buy-outs and management buy-outs
- Strategic investments and equity "carve-outs"
- Mezzanine funds: PIK, equity-linked, and coupon instruments
- Secondary and "vintage' funds
- "Growth" equity and "activist" hedge funds
- Sources of funds: debt
- Loans: bilateral loans, syndicated loans, leveraged loans, bridge lenders
- Mezzanine lenders
- The private placement market and public high-yield
- CLOs / CDOs
- Sources of funds: equity managers and equity providers
- Managers of equity funding
- Sources of equity funding
- Alternative sources of funds
- Strategic investors
- "Activist" hedge funds
- Private equity sources of returns / manager value-added
- Timely entry: attractive entry valuations due to market conditions, motivated sellers
- Financial: aggressive substitution of debt for equity, with careful cashflow management
- Operational: post-closure performance improvement due to enhanced managerial resources, more highly-motivated management and workers
- Strategic: growth to critical mass in a consolidating sector
- Timely exit: sale to motivated strategic or financial buyers, or to public market in an environment of multiple expansion
- Private equity managers: organisational structures and associated funds flows
- General vs. limited partners
- Legal: specified life, withdrawal prohibitions, transfer restrictions, liability
- Capital flows: "takedown" schedules, capital calls, distributions
- Manager fees and compensation, reporting and accounting policies
Case studies
- "Growth" private equity: TPG Texas Pacific, General Atlantic, and Newbridge Capital Investment in Lenovo
- DLJ merchant banking partners Stake in Hard Rock Hotels
- An Asia restructuring idea: Korea Tobacco and Ginseng
- Japanese event-driven trades
- Equity sources: Goldman Sachs, Capital Partners
Hilton Hotel Singapore, Singapore, Singapore
This programme takes place on a non-residential basis at Hilton Hotel Singapore. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
-
Andrew Regan
Andrew Regan, CFA served as an investment banker at Merrill Lynch and as a securities analyst at Donaldson, Lufkin, and Jenrette, where he counselled large institutional investors on their retail sector holdings.
In addition to these conventional sell-side duties, he was centrally engaged while at DLJ in a number of banking transactions involving retailers, including LBOs, IPOs, primary and secondary equity offerings, and private placements. He also assisted in the successful recapitalisation of a major real estate portfolio in the Silicon Valley area of California.
As an experienced training consultant, Mr Regan provides pedagogical support to organisations in the theory and practice of corporate finance and asset markets In his teaching work, he develops overall curricular strategies, prepares case and other instructional materials, delivers programs in the classroom, and offers follow-up evaluation.
He has delivered programs for clients throughout North America as well as Europe, Latin America, Asia, Africa, and the Middle East.
Andrew received his A.B. magna cum laude in Modern European History from Harvard College, his M.Sc., with Distinction, in West European Politics from the London School of Economics, and his M.B.A., with High Honors, from Harvard Business School, where he was a George F. Baker Scholar, Charles M. Williams Fellow, and Dean's Doctoral Award Winner. He holds the CFA Charter.
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
12-15 Jun 2012 (Hong Kong, Hong Kong)
4-7 Dec 2012 (Singapore, Singapore)
Our expert 'Bond School' provides systematic, integrated training on all bond and bond related products available in the market today. The course is designed to equip you with the most professional, intensive and active market knowledge in this field.
5-8 Nov 2012 (Hong Kong, Hong Kong)
'Financial Modelling for Mergers and Acquisitions' is a hands-on course that offers practical instruction on how to model economic, financial and strategic issues associated with M&A.
18-22 Jun 2012 (Singapore, Singapore)
3-7 Dec 2012 (Hong Kong, Hong Kong)
A practical guide to provide you with a complete understanding of the various efficient corporate valuation techniques
9-12 Jul 2012 (Singapore, Singapore)
A practical guide shows you how various securities are constructed, the risks they pose, how to value them, how they interrelate, and about the timing of their issuance
21-23 May 2012 (Hong Kong, Hong Kong)
15-17 Oct 2012 (Singapore, Singapore)
Portfolio performance measurement is the quality control element of the investment decision process. It provides the necessary information to enable asset managers and clients to assess exactly how their money has been invested and the results of the process. Performance
measurement is a core part of the decision process providing essential information to several key stakeholders.
16-20 Apr 2012 (Singapore, Singapore)
24-28 Sep 2012 (Hong Kong, Hong Kong)
A 5-day intermediate training programme on fixed income securities, fixed income derivatives and fixed income structured products.
9-12 Jul 2012 (Hong Kong, Hong Kong)
This course covers a broad spectrum of topics to ensure your comprehensive understanding of how IPOs are arranged, managed, priced and distributed
3-7 Sep 2012 (Hong Kong, Hong Kong)
This 'Asian Investment Management School' will give you all the in-depth information you will need to advance your investing skills through structured study, group exercises and investment simulations.
10-13 Jul 2012 (Singapore, Singapore)
11-14 Sep 2012 (Singapore, Singapore)
The aim and objective of 'Strategic Portfolio Management and Asset Allocation' is to further develop the skills, competencies, and knowledge needed to achieve investment objectives by managing and controlling investment risk and enhancing the returns of investment portfolios.
10-12 Sep 2012 (Hong Kong, Hong Kong)
A detailed guide of how to value mining companies
19-21 Mar 2012 (Singapore, Singapore)
10-12 Sep 2012 (Hong Kong, Hong Kong)
The principal aim of 'Financial Modelling in Excel' is to enable participants to use Microsoft Excel to prepare logical and easy-to-use financial models to support transactions, forecasts and planning for ongoing business needs.
The advertised price is our Early Bird Discount. Early Bird Deadline is 20 February 2012. Register and pay before this date to receive this special discounted rate!
26-27 Nov 2012 (Hong Kong, Hong Kong)
A comprehensive course focuses on the intricacies of Asian high-yield bond structuring, interpretation of covenant packages, as well as documentation and execution aspects
23-27 Apr 2012 (Hong Kong, Hong Kong)
15-19 Oct 2012 (Singapore, Singapore)
This course looks at the challenging environment of Mergers & Acquisitions and the factors that shape this corporate landscape.
5-7 Sep 2012 (Hong Kong, Hong Kong)
Structured Mezzanine and Equity Finance aims to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures.
8-12 Oct 2012 (Singapore, Singapore)
This highly practical course will lead you quickly from the basics through to the more advanced company valuation methodologies and modelling techniques
12-14 Mar 2012 (Singapore, Singapore)
17-19 Sep 2012 (Hong Kong, Hong Kong)
This course provides a firm grounding in the instruments
and activities of the international money and FX markets, sweeping away the confusion that can be created by the scale, speed and apparent diversity of the markets.
31 Oct 2012 - 2 Nov 2012 (Hong Kong, Hong Kong)
This unique new masterclass will help you navigate the
rapidly evolving world of ETFs and understand the role of the different players in the structuring, management, administration and marketing of ETFs.
28-30 Nov 2012 (Singapore, Singapore)
This comprehensive course addresses many of the pension issues from both the asset and liability perspectives to give you a holistic appreciation of the complex issues involved.
20-23 Mar 2012 (Hong Kong, Hong Kong)
This course will advocate an holistic approach to macro market analysis and investing and will explain this approach by examining inter-relationships across all relevant asset classes as expressed in the day to day co-movements revealed in global markets.
The advertised price is our Early Bird Discount. Early Bird Deadline is 21 February 2012. Register and pay before this date to receive this special discounted rate.
26-27 Mar 2012 (Hong Kong, Hong Kong)
Offshore RMB bonds, better known as dim sum bonds has seen explosive growth in the last 12 months and garnered great interest from international issuers and investors alike. 'RMB Bonds' course explores the reasons behind the growth, key issues surrounding current policies, market developments and reviews why this could potentially be a new G4 bond market.
The advertised price is our Early Bird Discount. Early Bird Deadline is 27 February 2012. Register before this date to receive this special discounted rate!
Course dates