$67.00 $399.00
Advanced LBO Modeling by Wall Street Prep presents a complete walkthrough of how to build a complicated LBO model from scratch. It covers the fundamentals and advanced concepts through instructions on the whole process.
Course Overview
Advanced LBO Modeling by Wall Street Prep covers the basic concepts of LBO, common deal structures, and existing industry dynamics. Also, it deep dives into the process of modeling, common mistakes, and effective solutions. Once you build a solid foundation, you will learn advanced topics of purchase price allocation and deferred taxes in acquisitions.
Course Outline
Introduction to LBOs and recaps
- Understanding concepts: Working through an LBO on a cocktail napkin
- What is the current financing and valuation environment?
- What are key industry benchmarks?
- LBO capital structure: TLs, Bonds, Mezz, Preferred, Bridge Loans, and Equity
The Structure of PE Firms & Investor Dynamics
- How PE funds work and where they fit in the financial system
- GP vs LP dynamics
- PE Economics: The distribution waterfall
LBO model development
- Setting up the initial valuation and general assumptions
- Calculating diluted shares
- Building the Sources & Uses schedule: Build a heavy-duty, yet flexible, sources & uses of funds schedule; Make adjustments in one place – watch it flow error-free throughout the entire model.
- Line-by-line build-up and forecasting of the income statement and working capital schedules
- Modeling LBO debt
- Term loan A/B/C– Modeling mandatory amortization as well as cash sweeps
- Revolver – Automatic cash sweep, minimum cash balance, and maximum borrowing capacity
- Pricing matrix driven off LIBOR spot rates + spread
- Senior and Sub Notes – Modeling PIK vs Cash interest
- Preferred stock – Allowing for equity kickers
- LBO returns and exit analysis for all providers of capital:
- Sponsor equity and management rollover
- Lenders and preferreds
- LBO modeling best practices
- Circularity breaker and error trapping – no more DIV#0 and REF#!
- Building key sensitivities into model outputs
Advanced LBO modeling
- Building PIK toggles into debt tranches
- Layering a Pro Forma 3 Statement Model on the LBO Analysis
- Key balance sheet adjustments in an LBO
- Advanced Purchase Price Allocation (PPA) modeling (Goodwill; Asset write-ups; Deferred taxes created in the deal)
- Toggling between LBO and recapitalization accounting treatment
- Creating a switch for Asset sale/338 vs Stock Sale tax treatment
- Modeling dividend recaps
- Attaching a DCF analysis to an LBO model
What Will You Learn?
- Deep dives into the operation of an LBO/Recapitalization according to today’s standards and credit environment.
- How to build a LBO model having “industrial strength”.
- The integration of switches for LBO vs. Recap accounting treatment.
- Effective approaches to model Senior, Revolver, Sub, Mezzanine, and preferred stocks.
- How to install a PIK toggle to various debt tranches.
- The integration of cash sweep functionality with term loan debt tranches.
- Proper how-tos to schedule sources and uses (S&U).
- The analysis and sensitization of IRRs for sponsors, preferreds, and management.
- How to develop a model with complicated accounting adjustments, such as deferred taxes, fair value write-ups, etc.
- Building up your confidence in acing your private equity interviews.
Who Is This Course For?
The professionals who want to sharpen their modeling skills through the fundamentals and advanced concepts will find this course helpful.
Wall Street Prep
Please Login/Register if you want to leave us some feedback to help us improve our services and products.
RELATED COURSES
VIEW ALL-
The RCV Course – RC Visionaries$129.00The RCV Course – RC VisionariesUpdate 26 Sep 2022Intermediate
Acquire a substantial amount of knowledge to break through your mediocrity in trading with the education from The RCV Course by the online platform RC Visionaries.
Add to wishlist -
Research and Trade Like a Pro – Investopedia$33.00
$199.00Research and Trade Like a Pro – InvestopediaUpdate 26 Sep 2022All LevelsResearch and Trade Like a Pro by Investopedia shows you how to spend less time on your research, and focus on vital information for better trades.
Add to wishlist -
Micro-Futures Formula (Elite Package) – Simplertrading$94.00Micro-Futures Formula (Elite Package) – SimplertradingUpdate 29 Jun 2022Intermediate
Eliminating risk and maximizing earnings via trading as securely as possible with Jack Roberts in Simpler Trading’s Micro-Futures Formula (Elite Package).
Add to wishlist -
Become Your Own Private Equity Firm – The System$100.00
$1,097.00Become Your Own Private Equity Firm – The SystemUpdate 07 Mar 2023The System – Become Your Own Private Equity Firm provides a step-by-step framework for evaluating opportunities, negotiating deals, and managing investments, and is designed for those looking to build long-term wealth through savvy investments.
Add to wishlist -
Excel School 2.0 – Dashboard + VBA Download$45.00
$347.00Excel School 2.0 – Dashboard + VBA DownloadUpdate 12 Mar 2024Addressing the challenge of automating tasks is a common concern, and Excel VBA provides a solution for streamlining various aspects of data analysis, reporting, and modeling work.
Add to wishlist -
Forecast 2023 – Larry Williams$19.00
$249.00Forecast 2023 – Larry WilliamsUpdate 18 Jan 2023All LevelsThe Forecast 2023 by Larry Williams walks you through Larry’s forecasts on the market cycles based on insights into unemployment, recessions, GDP, yield curve, etc. Thus, you can see how these forecasts are made based on factual information and database. It also helps you easily come up with effective solutions to upcoming tough situations.
Add to wishlist
Reviews
There are no reviews yet.