Course dates
A
3 day course on the process and techniques of financing a company’s growth using private equity. The course covers the entire company’s lifecycle from seed stage to maturity.
What you will learn:
- When and how to use private equity to finance a company’s growth
- Valuation from the investor’s and owner’s perspectives
- The capital raising protocol
- Private equity funds’ features and investment process
- Due diligence and documentation
- Main characteristics of seed, growth and acquisition financing
- How to analyze and negotiate investors’ term sheets
- Advanced financing structures, valuation and negotiation
- Typical transaction structures in leveraged buyouts
The Private Equity Landscape
§ History
§ Industry structure
§ Investment trends
§ Platform vs. add-on investments
§ Transaction types
§ Fund-level characteristics
§ Return objectives by stage
§ Strategic corporate investors
§ Investment process
§ Sources of funds
§ Fund operations and objectives
Valuation Fundamentals
§ Intrincic Valuation
§ DCF valuation
§ Phases of growth
§ Reality checks
§ Comparative valuation
§ Market-based valuation
§ Valuation metrics
§ Choosing comparables
§ Contingent valuation
§ Real options
§ Monte Carlo Simulation
§ Binomial tress
§ The VC Method
Seed Funding
§ Fundamentals
§ Main players
§ Seed stage valuation
§ Security instruments
§ Pro-forma exit scenario analysis
§ Dilution issues
§ Investment tranches
Case Studies
(a) Valuation – Participants will calculate the pre-money valuation of Technora, Inc.(an early-stage software company, using DCF, market-based valuation techniques and the VC Method.
(b) Funding Strategy – Participants will analyze the funding needs of Technora for the next 18 months and determine the price per share and the founders’ dilution given a requirement from investors regarding the establishment of an options pool for future hires.
Growth and acquisition financing
§ VC investment activity
§ Investments by stage
§ Investments by series
§ Median returns
Venture Capital
§ Selecting the right fund
§ Typical VC fund profile
§ VC returns
§ The investment process
§ Venture debt: types and uses
§ Negotiating terms
Understanding preferred stock
§ Types of preferred stock
§ Main features
§ Antidilution provisions
§ Liquidation preferences
Capital Raising Protocol
§ The business plan
§ How investments are evaluated
§ The management presentation
§ Questions to ask
§ Creating an auction
§ The due diligence process
§ Series A financing documents
Analyzing a term sheet
§ Main elements
§ Price per share
§ Pre- and post-money valuations
§ Cap tables
§ 10 most common clauses
§ Focus of negotiations
§ Investors’ tactics
Case Studies
(a) Due Diligence – Participants will analyze Technora’s from the point of view of a VC investor and develop questions required to conduct a proper due diligence (business model, operational, market, management team) on the company leading to an investment decision.
(b) Deal Negotiation – Participants will form negotiating teams representing VC investors and founders. The teams will decide upon the value of the company based on previous analyses, negotiate a deal and agree on a Term Sheet outlining the basic structure of the deal.
Advanced Investment Structures
§ The capital structure
§ Mezzanine finance and subordinated debt
§ Options, warrants and convertibles
§ Valuation and negotiation
§ Private placements
Leveraged buyouts
§ Candidate criteria
§ Typical transaction structures
§ Pros and cons
§ Rationale
§ Management buyouts
§ Recapitalizations
Case Studies
(a) Leverage Buyout – Participants will analyze the acquisition of Technora by its senior management team using a combination of bank debt and mezzanine financing.
From Seed to Series C – Participants will analyze the funding needs of Technora for the next five years (Series seed to C) and determine the price per share, dilution, options pools, shares to be issued for each round and establish what the investors’ interest will be worth upon a future exit along with their expected returns
New York Hotel, New York, United States
This program takes place on a non-residential basis at a New York hotel. 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.
As with all Euromoney Training programmes on-site administrators are with you throughout the programme to ensure smooth administration and group interaction.
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Enrique Brito
The training program is lead by Enrique Brito, a Senior Managing Director at The McLean Group, a middle market investment bank headquartered in Washington DC. Mr. Brito has more than 20 years’ corporate finance and investment banking experience and has been involved in transactions in the US, Mexico, Venezuela, Colombia, Argentina and Peru. He also has 10 years of experience as a national instructor in the United States in mergers & acquisition, business valuation and negotiation. He is a regular contributor to business publications and a speaker at national conferences on M&A topics.
Mr. Brito holds an MBA, with honors, from The American University and a BS degree in Industrial and Systems Engineering from the University of Florida. He also holds professional credentials as a Chartered Financial Analyst (CFA), Accredited Valuation Analyst (AVA), Certified Merger & Acquisition Professional (CMAP) and Certified Mergers & Acquisitions Advisor (CM&A). Mr. Brito is a member of the CFA Institute, the Washington Society of Investment Analysts, the National Association of Certified Valuation Analysts and the Middle Market Investment Banking Association. He is a Financial Industry Regulatory Authority (FINRA) registered representative (Series 7, 63), investment banking representative (Series 79) and general securities principal (Series 24).
Courses run by this instructor
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.
20-22 Jun 2012 (Miami, United States)
17-19 Dec 2012 (Miami, United States)
20-22 Nov 2013 (Miami, United States)
The course begins by concentrating on spreadsheet best practice, auditing and the advanced use of Excel. These skills are then applied to the construction of financial, valuation and investment models. Delegates learn how to incorporate forecasting, optimization, risk assessment and sensitivity scenarios into these models. The course is taught using a step-by-step approach to enable delegates to construct financial models for a wide range of practical scenarios.
29 Oct 2012 - 1 Nov 2012 (New York, United States)
For purposes of this course, each of the four days is divided into two modules, resulting in a total of eight modules for the entire course. The outline presents teaching objectives, lectures and case work in each of the different modules.
17-19 Oct 2012 (New York, United States)
The aim of this course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures.
17-19 Sep 2012 (New York, United States)
The aim of this course is to provide participants who already have some transaction experience with further exposure to M&A, company valuation and deal structuring and financing. You will also be introduced to international practice in executing mergers and acquisitions, including an appreciation of today's market practices and procedures including due diligence, accounting issues and valuation techniques.
10-12 Dec 2012 (New York, United States)
Advanced Corporate Finance Techniques explores the broad realm of complex financing tools available to corporate issuers. You will develop strategies used to create value-adding debt financing transactions, considering many of the latest debt financing alternatives available today.
10-13 Sep 2012 (Mexico City, Mexico)
Este programa de entrenamiento ha sido desarrollado por banqueros de inversión con más de 20 años de experiencia práctica en el mercado medio. El curso desarrolla y compara metódicamente ambos puntos de vista en la transacción con el fin de proveer a los participantes de una visión completa de los factores críticos en la operación de fusiones y adquisiciones en el ámbito real de transacciones de negocios. A lo largo del programa, los conceptos principales son enfatizados con el uso de ejemplos y casos de estudio con el propósito de analizar y mostrar la aplicación práctica de dichos conceptos.
9-12 Jul 2012 (Miami, United States)
10-12 Sep 2012 (New York, United States)
Real Estate Modeling is an intensive hands-on course that provides attendees with knowledge regarding both fundamental and challenging modeling issues in the real estate industry. Delegates will learn how to model mixed development projects, residential projects with multiple portfolios, cash flow waterfalls, and simulation of risk associated with different lease rolls. Sessions of the course will include effective presentation of model outputs and comprehensive scenario analysis. In addition, the program will enable delegates to develop their skills in a variety of modeling issues associated with setting-up inputs, working with flexible time periods and incorporating alternative financing structures.
22-24 Aug 2012 (Miami, United States)
With the financial world currently undergoing significant changes, one of the most important challenges in banking is to reinforce the syndicated loan function and to refresh techniques given the evolution of the syndicated loan market. This course enables you to ensure that your staff – whether bankers, lawyers or investment professionals – have the tools to cope with the new environment.
24-27 Jul 2012 (Miami, United States)
13-17 Aug 2012 (New York, United States)
13-16 Aug 2012 (New York, United States)
17 Aug 2012 (New York, United States)
Formal lecture sessions, innovative deals and numerous examples of projects in the oil and gas, power and water desalination sectors are drawn from around the world and discussed
throughout the course. You will develop a framework for recognising, and analysing qualitative and quantitative project risks. Formal lecture sessions, innovative deals and
numerous examples of projects in the oil and gas, power and water desalination sectors are drawn from around the world and discussed throughout the course. You will develop a framework for recognizing, and analyzing qualitative and quantitative project risks.
26-28 Nov 2012 (New York, United States)
This course is designed to increase participants’ understanding of the increasingly complex and sophisticated process of liquidity risk measurement and management exploring both its issues and challenges. The 2007- 2009 crisis has only accelerated the spread of “new” best practices. National and international regulators, including FSA and CEBS are adding more complexity.
All delegates will receive comprehensive course documentation for use before and during the program. This will enable you to return to your organization with an extensive and valuable source of information for future reference.”
24-27 Sep 2012 (New York, United States)
The objective of this Workshop is to provide the assisting delegates with the necessary tools, techniques and criteria in order to further develop the skills competencies, and knowledge that are essential in managing client relationships, investment risk, and communicating portfolio management solutions
12-14 Jun 2013 (Port of Spain, Trinidad and Tobago)
The course begins by concentrating on spreadsheet best practice, auditing and the advanced use of Excel. These skills are then applied to the construction of financial, valuation and investment models. Delegates learn how to incorporate forecasting, optimization, risk assessment and sensitivity scenarios into these models. The course is taught using a step-by-step approach to enable delegates to construct financial models for a wide range of practical scenarios.
Course dates