Public Course

Transaction Comparables and LBO Analysis Fundamentals

Regular price $850.00 USD
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  • What you'll learn
  • Venues
  • Prerequisites
  • What you'll learn
  • Transaction Comparables

    Participants are introduced to preparing a transaction multiples matrix using LTM earnings. The rationale and components of control premium and its impact on valuation are discussed. A comparable transaction analysis is performed on the case industry.

    Learning outcomes

    • Difference between trading multiples and multiples from precedent transactions
    • Selection of transactions and information gathering
    • Change of control issues
      • Share capital and equity linked instruments
      • Pensions
      • Poison pills
    • Control premium and synergies
    • Bottom up calculation of enterprise and equity value multiples
    • Practical issues with transaction comparables
    • Analysis and summary output

    LBO Analysis Fundamentals

    Participants are introduced to the basic concepts underlying leveraged buyouts. The session starts by establishing why private equity firms can create value through leveraged buyouts and how the levered valuation fits into the valuation roadmap. Using a simple free cash flow forecast, participants establish how much a financial buyer could pay for the target company. Participants then build a simple LBO model.

    Learning outcomes

    • What an LBO is and how it can create value
    • LBO valuation as an alternative valuation methodology
    • Characteristics of suitable LBO candidates
    • Estimating cash flows available to capital holders
    • Estimating debt capacity
    • Simplified debt/equity split for entry capital structure
    • Sources and uses of funds
    • Debt structure
    • Estimating the exit value
    • Calculating the IRR
    • Sensitizing the model
  • Venues
  • London: Tenter House, 45 Moorfields, London EC2Y 9AE

  • Prerequisites
  • A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:

    Financial Statement Analysis

    Financial Modeling

    • Financial Modeling - Fundamentals
    • Financial Modeling - Cash Sweep and Troubleshooting
    • Financial Modeling - From Scratch



          Who should attend?

          New hires who have joined the firm late and missed the in-house program

          Individuals looking to fill a knowledge gap

          Experienced bankers looking to refresh their technical skills

          Teams employed in financial strategy roles from non-banking corporations

          Graduates preparing to interview for a role in the finance sector

          Students at business school and looking for a career in finance

          What to use

          You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

          Ask our trainers

          If you have any questions about the course content, you can email our experienced trainers for any further questions

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