A Case Approach to Modelling Buyouts & Leveraged Deals

Overview

The Construct, Driver and Execution of LBO/MBOs

The acquisition of a company and/or business goes beyond number crunching. In management and/or leveraged buyouts (LBO), key considerations include capital structure, funding, cash flow, debt repayment and post acquisition value creation can have significant influence on the valuation and the final price tag.

The 2-day workshop, participants will learn how to overlay financing structures and deal terms into the financials and valuation of the acquisition target. Using a case approach to building a LBO financial model, participants will learn to determine potential returns and make appropriate recommendations to management and investors.

Next Course Starts On05 Mar 2019 (Tue) See Full Schedule
Fee SGD2140.00* (as low as SGD242.00* after maximum funding) Learn more
Duration

2 days

Level
Advanced
Venue

Singapore Management University

Learning Objectives
  • Understand the construct and drivers of a buyout
  • Learn the framework for building leveraged buyout model
  • Structure debt and cash flow waterfalls used in a buyout transaction
  • Evaluate potential returns based on an LBO model
  • Adapt financial models and valuations for deals in the Asian context

Topics/Structure

The Construct and Drivers of a Buyout

The acquisition of a public or private company goes beyond valuation. For many investors, structuring and funding a buyout involves a number of considerations such as funding requirements, prospect of the target company being acquired and strategies for creating value post acquisition.

 

Framework for Building LBO Model

Depending on the deals, LBO models can be complicated. Learn how to overlay financing structures and deal terms into the target company’s financial statements and valuation.

 

Sculpting Debt & Cash Flow Repayments in an LBO

Debt financing is a critical component of LBO. Construct cash flow waterfall payments that involve multiple avenues of financing using a combination of equity and debt to determine optimal capital structure.

 

Valuation Multiples, Credit Metrics & Derived Equity IRR

Assess and structure deal multiple into financial models, analyse credit metrics and equity returns, so as to effectively communicate with both financial institutions and investors.

 

Considerations for Executing Buyouts in the Asian Context

LBOs are very common in the US due to liquidity. Learn how do financial institutions and investors typically adapt this in an Asian context.

Who Should Attend

  • Financial and investment analysts looking to enhance their financial modelling competencies
  • Corporate finance professionals involved in the evaluation and advisory of acquisitions and buyouts

Participants are expected to be proficient in building financial models involving the three key financial statements, good understanding and application of accounting concepts and valuation techniques.

Assessment

Participants will be assessed via graded assignments and in-class activities. Upon meeting the attendance requirement and passing of the assessments, participants will receive a Certificate of Completion.

Learning Activities

Classroom Training. The program adopts an interactive and practical oriented approach. Participants will gain hands-on practice building a LBO model.

Fees and Funding

Full Fee: S$2,140 per pax (incl GST)

Nett Fee payable after SkillsFuture Singapore (SSG) Funding:

  • S$642 (incl GST) for Singapore Citizens and Singapore Permanent Residents
  • S$242 (incl GST) for Singapore Citizens aged 40 years and above
  • S$242 (incl GST) for Singapore Citizens and Singapore Permanent Residents on Enhanced Training Support for SMEs (ETSS)
  • S$142 (incl GST) for Singaporeans on Workfare Training Support (WTS)

• All self-sponsored Singaporeans aged 25 and above can use their $500 SkillsFuture Credit to pay for the programme. Visit the SkillsFuture Credit website (www.skillsfuture.sg/credit) to select the programme.

• Mid-Career Enhanced Subsidy - Singaporeans aged 40 and above may enjoy subsidies up to 90% of the programme fee

• Workfare Training Support (WTS) - Singaporeans aged 35 and above (13 years and above for persons With disabilities) and earn not more than S$2,000 per month, may enjoy subsidies up to 95% of the programme fee.

• Enhanced Training Support for SMEs (ETSS) - SME-sponsored employees (Singaporean Citizens and PRs) may enjoy subsidies up to 90% of the programme fee. For more information, visit www.ssg.gov.sg/programmes-and-initiatives/training/enhanced-training-support-for-smes.html.

• Eligible organisations (excluding government entities) may apply for the absentee payroll funding via SkillsConnect at www.skillsconnect.gov.sg for Singaporean/permanent resident participants attending the programme during working hours. The absentee payroll funding is computed at 80% of hourly basic salary capped at $4.50 per hour or $7.50 per hour for SME or 95% of hourly basic salary for WTS. For more information, visit https://www.skillsconnect.gov.sg/sop/portal/e-Services/For%20Employers/AbsenteePayroll.jsp

Schedule

Start Date(s)
Intake Information

5 & 6 Mar 2019 (Tue & Wed)

Program is held from 9am - 5pm

Speaker/Trainer Bio

Kenny Ng is an Executive Director of IJK Capital Partners focusing on cross-border investment and advisory deals. Based out of Singapore and Shanghai, he also spent his time working on fundraising, deal evaluation and execution at one of the largest private equity growth funds. 

He has over 12 years of investment banking and corporate finance experience at BNP Paribas, Standard Chartered and KPMG Corporate Finance, executing numerous M&A and capital markets transactions in various sectors such as industrials, consumer, energy, etc. A banker by profession and engineering-trained, Kenny holds a Bachelor of Engineering in Computer Engineering from the National University of Singapore.

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