Session 1:

Background to Private Equity

• Background to growth of the private equity market

• How private equity differs from venture capital

• New trends for management buyouts

• Motivations of different parties and potential for conflicts of interest

• How funds are structured, expected returns and fees

• Key terminology

• Case study: Transaction types (MBO, MBI, BIMBO, IBO, P2P, LBO, LBU, SBO)

Session 2:

Structuring and Pricing a Buy Out

• What influences Internal Rate of Return (IRR)

• Key aspects of structuring and typical structures across small to large deals

• The different types of debt: senior, second lien, mezzanine, high yield bonds

• The importance of loan characteristics - amortisation/bullet, PIK

• Equity considerations and special features of management equity

• Case study: Attractions and risks of a UK buyout

• Case study: Simple IRR

• Case study: Structuring the amount and type of debt for an MBO

Session 3:

Legal Considerations

• NewCo’s and the reasons for use of Special Purpose Vehicles

• Financial Assistance and impact of the Companies Act 2006

• Structural vs. Contractual Subordination

• Lender considerations and debt pushdown

• Due diligence and documentation

• Case study: Matching up documentation requirements

Session 4:

Achieving a successful buyout

• Factors influencing the investment decision

• It’s all about exit and IRR - exit routes for the sponsor and how they’ve been changing

• Non-financial input by the sponsor

• Key factors in selecting buyouts

• Why buyouts work and don’t work

• Reasons for failure

• Case study: Review of buyout candidates to select potential winners

• Case study: Options when things go wrong

Course Close