Dates                                                                 
 
9 December 2008
23 February 2009
18 June 2009
15 October 2009

Course Overview

This course is designed for staff for example working in corporate finance or working with private equity firms. The course allows participants to understand the work of the firm and set their own work in context – any jargon participants are encountering is explained clearly and simply. Participants are given ample opportunity to ask questions in a supportive and non-threatening environment. The financial instruments that are used (such as mezzanine finance plus other debt and equity instruments) will be examined in detail and the key legal aspects of MBOs discussed. Participants will also learn by working through exercises on structuring MBOs. By the end of the course they will understand how MBOs work, how deals are structured, the risks and rewards to different parties, what investors are looking for and how they can best get it.

Participants will be required to bring a scientific calculator and a laptop with USB port to the course.

Course Content

Background
Where does the money come from?
Different types of transaction and differing structures
Investment time frames and hurdles
How are investors rewarded?
How is success measured?
De-mystifying jargon

Structuring an MBO
Senior debt
Mezzanine finance
Institutional equity
Vendor notes
Management equity

Pricing an MBO
Valuation of target company
Debt considerations
Use of P/E ratios
Venture capitalists’ IRR

Achieving a Successful Buy-out
Determining debt capacity
Negotiating equity stakes – management’s “Envy Ratio”
Key criteria for success
Due diligence considerations