What are Leveraged Buyouts?
LBOs are takeovers of companies using borrowed funds and private equity. Typically, the target company's assets and cash flow serve as support for the funding taken out by the acquirer, which repays the debt out of cash flow and asset disposals of the acquired company.
About the Course
This 2-day intensive course aims to improve participants' understanding of leveraged and management buyouts. The course covers the specific challenges in going-private and private-to-private transactions, including the use of leveraged finance for LBOs and other purposes, and the various techniques of leveraged buyout financing. These include senior bridge and term loans, subordinated and mezzanine debt instruments, capital instruments and private equity. Working in teams, we will employ analytical methods including spreadsheet development, lectures and case studies.
These articles will help you prepare for the course.
Articles and Books
Notes on cost of capital and capital structure
The Syndicated Leveraged Loan Market
Sample Due Diligence Checklist
Subordinated notes term sheet
fitchratings.com (bond ratings)
bondsonline.com (corporate bond spreads)
damodaran.com (industry ratios)
advfn.com (corporate financial ratios)
Corporate Finance and Debt Capacity Tables
About the Instructor
Dr. Ian Giddy, born in South Africa, has taught finance at NYU, Columbia, Wharton, Chicago and in over 40 countries worldwide for the past three decades. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in North and South America, Europe, Asia, the Middle East and Africa. As a banker and consultant he has been involved in the growth of the structured finance market in the USA, Europe and Asia. He is the author or co-author of The International Money Market, The Handbook of International Finance, Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide. He and his wife are the founders of Cloudbridge, a nature reserve in Costa Rica.