Financial Modeling for LBOs Seminar
November 15-16, 2005 in New York
Program Fee: $2,150 per person.
Download PDF Mail-in Registration
This two-day workshop in New York City is designed for:
- Private equity deal team analysts and associates
- M&A analysts and associates
- Credit analysts and equity research analysts
- MBA graduates who want to distill their studies
into practical real-life modeling - Others in the banking, accounting, and legal professions who want to advance their finance skills
- Employers who want to benefit from high value-added
training for their staff
Teaching Approach
A combination of short lectures and demonstrations, with extended exercises. The two instructors will alternate. Both will be in the class at the same time, one as the instructor for the session and the other as the class coach.
This is a hands-on seminar. Expect to be active at your keyboard throughout the two days.
Topics for modeling the company (Day 1) include:
- Accounting to link the income statement, balance sheet and the cash flow statement
- Forecasting approaches for the elements in the financial statements
- Debt and interest calculations: Cash and Payment-In-Kind (PIK) debt, non-cash flows, timing of interest calculations based on the transaction point in the fiscal year
- Capital expenditures levels, depreciation schedules and
asset sales - Equity in earnings of affiliates, minority interest in earnings
- Deferred taxes
- Options
Topics for modeling the LBO (Day 1 and 2) include:
- Discounted Cash Flow valuation
-- The Weighted Average Cost of Capital
-- Elements of the Free Cash Flow
-- Terminal value by growth to perpetuity or by exit multiple
-- Mid-year or year-end discounting
-- Discounting to the valuation date anytime in the year
-- Sensitivity tables for enterprise and equity values - Fair value adjustments, amortization of write-ups and write-downs, and related deferred taxes
- Uses and sources of funds; mix of senior debt, mezzanine debt and equity
- Net asset value; calculation of goodwill; dealing with negative goodwill; LBO and recapitalization accounting
- Cash sweep for the automatic repayment of debt post-LBO
- IRR analysis for returns of different investor classes; implied required investment levels for target returns
- Pro forma statements
Requirements
You should be thoroughly familiar with accounting and have a
working experience with Microsoft Excel®. We will not cover
macros.
Please bring to class:
- Your own Windows laptop computer with Microsoft Excel® installed. The laptop must have a USB port so that the class files can be copied in at the start of the class.
- The power cord
- A mouse or other preferred input device
This class does not required an Internet connection.
Location
3 West Club
3 West 51st Street
New York, NY 10019
(212) 582-5454
Click on the map
for details
and directions
Refund Policy
You may cancel up to 14 days before class for a full refund.
After this point, we cannot provide refunds for cancellations.
However, substitutes from the same firm are welcome.
TMG & Associates reserves the right to cancel the class due to low enrollment. If this class is canceled, you will receive a full refund.
Register
Program
9:00 am-5:00 pm
Class preparation: None
Day 1:
Modeling the Company
Before the LBO
- Fundamentals of final projection modeling
- Iterative calculations, circular references and error traps
- The three financial statements; balancing plugs and cash flow reconciliations
- The accounting and forecasting for elements in the financial statements
- Discounted cash flow valuation
Day 1 and 2:
At the LBO Deal Date
- The balance sheet at the deal date
- Fair Market Value and Net Asset Value
- Intangibles, goodwill and recap accounting
- Sources and uses of funds
- Debt and equity financing
Day 2:
After the LBO
- The income statement and the cash flow statement after the deal date
- Cash sweep for automatic repayment of debt
- IRR analysis
- Required return analysis
- Pro forma statements
- Ratios and executive summary
- Q&A and Wrap-up
