Leveraged Buyouts, Private Equity and Restructuring 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 senior and mezzanine debt out of cash flow and asset disposals of the acquired company, as well as refinancing. As cash flows become strained, the leveraged company may require restructuring. About the Course This three-day program provides new light on the role of private equity investors in the management and restructuring of companies facing tough credit and market conditions. During the program it will be demonstrated how any company can benefit from private, active ownership, management incentives and the discipline of debt financing. Working on actual LBO deals and case studies, participants will learn how companies can adapt to the credit crisis and emerge stronger. The program offers details of the nature and sources of leveraged finance, including subordinated and equity-linked mezzanine instruments, applicable to emerging markets as well as the hard-hit developed countries. Pre-Course Reading
Course Outline
Additional Resources Articles and Books Notes on cost of capital and capital structure Second Lien Loans Mezzanine Finance 1 Mezzanine Finance 2 Subordinated notes term sheet Useful Links fitchratings.com (bond ratings) bondsonline.com (corporate bond spreads) damodaran.com (industry ratios) advfn.com (corporate financial ratios) Corporate Finance and Debt Capacity Tables agi_lbo_solution.xls iss_solution.xls financing_suriname_solution.xls jordan_lbo_model_soln.xls foodtree_solution.xls About the Instructor Dr. Ian Giddy, born in South Africa, has taught finance at NYU, Columbia, Wharton, Chicago and in over 45 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. |