Who Should Attend?
The seminar is of relevance to both potential issuers and investors in acquisition-related instruments, and to the bankers who serve them. These include corporate finance officers, commercial and investment bankers, securities analysts; investment officers; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of acquisition finance techniques.
Acquisition Finance is the use of the debt, equity and hybrid financing techniques to achieve an acquisition or leveraged buy-out in a cost-effective manner.
This workshop will be taught around four major topics employing in-depth group work on case studies, financial analysis and deal documentation. The focus will be on valuing acquisition targets and the design and pricing of situation-specific financing instruments to achieve the acquisition goal. Examples of such situations include: competitive bids, acquisition of distressed companies, acquisition of companies with disposable assets, and private equity and leveraged buyouts by financial sponsors.
debt is typically the foundation of acquisition finance, and delegates
will learn about bridge financing, term loans and revolving lines.
Subordinated debt often fills the gap between senior secured debt and
equity, and this category can take many forms, including second lien
notes, high yield bonds and mezzanine notes. Equity-linked securities,
including warrant bonds, convertible
notes, preferred stock, index-linked securities and others now offer
corporations and banks a means of financing that offers higher yields
without burdening the acquiror with burdensome interest payments.
Companies seek the best features of debt and equity, while lenders
and investors often demand the security and priority of claims offered
by debt, while expecting some upside in exchange
for the risks they take.
This workshop explores why and when corporations and financial institutions should use these different acquisition financing techniques depeding on the particular circumstances of the buyer or the seller, including tax and creditworthiness considerations. Together we will sketch a roadmap for choosing among the alternative forms of these techniques that are employed in today's capital market.
One goal for participants is to develop a check list or rapid
overview of the key criteria in an acquisition deal, to consider
a proposal, so as to grasp the main strengths and risks of the financing alternatives after an initial analysis.
The workshop will include case studies of actual financings,
well as hands-on
exercises, and will give participants the opportunity to demonstrate
understanding of deals through group work and plenary discussions.
Some of the issues to be explored:
Outline of Workshop