The Marquee Group - Capital Structure (LBO) Modeling
This hands‐on course focuses on the skills required to build and incorporate a complex capital structure into a financial model. Participants will recapitalize a company’s balance sheet and then forecast specific pieces of debt and equity so that the model can be used for credit purposes or as a Leveraged Buyout (“LBO”) model.
Incorporate an acquisition or financing into a model
Build a Sources and Uses schedule within a model
Incorporate all fees incurred with the transaction
Recapitalize a company’s balance sheet
Forecast debt and equity
Properly incorporate Senior Term Debt with an amortizing repayment schedule
Create a robust bank operating line (or revolving credit facility) with a cash sweep
Incorporate variable interest rates in which the spread is dependent on the company’s leverage
Calculate a stand‐by fee on the undrawn portion of the bank operating line
Utilize a margining formula to monitor the size of a company’s bank operating line
Incorporate Subordinated High Yield or Mezzanine Debt
Build a provision for non‐cash Payment in Kind (PIK) interest on various pieces of debt
Create a well‐designed shareholders’ equity schedule
Properly link the debt and equity schedules into the financial statements and balance the company’s balance sheet
Understand the need for circularity within a model
Make a model iterative by incorporating circular references
Learn to create a “circular reference breaker” to rid a model
Analyze investor’s expectations
Properly calculate the investor’s internal rate of return
Understand and incorporate operating and debt ratios
Include debt ratios in which the covenant tightens each year
Create “flags” to warn if a debt covenant has been tripped
Who Will BenefitThis seminar is designed for anyone who wish to improve their financial modelling skills and those involved in preparing financial budgets, forecasts and business valuation.
Date & Time
Wednesday, March 6, 20198:30 am to 5:00 pmLunch will be provided
Attendees must bring their own laptop with access to Excel.
Attendees should have a solid grasp of basic accounting fundamentals and proficiency with Excel prior to attending.
Early Payment Pricing: $525 + tax (if registration paid by February 20, 2019)
Regular Pricing: $600 + tax (registration closes on March 1, 2019)