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21 July 2017

Debt modelling (with LBO)

Category: MASTER COURSE

Discover how to construct a flexible model capable of analysing the suitability of target businesses for a leveraged buy-out.

Who should attend?
Finance professionals who need to create, analyse and interpret simple debt cash flow models. The course is set in the context of an LBO transaction, but is relevant to any form of debt modelling.

What you will gain
During this one-day course, you will construct a debt cash flow model in the context of an LBO transaction. The inputs to the model will be the operating cash flows of a business alongside some typical LBO debt constraints, and via the modelling of the debt cash flows, the Internal Rate of Return (IRR) of the transaction will be determined (and subject to a sensitivity analysis). Best practice financial modelling will be applied throughout.

Laptops are provided.

Programme outline
Key features of an LBO transaction

  • Length of investment
  • Exit routes – Initial Public Offering (IPO), trade sale, secondary buyout, liquidation
  • Cash generation and profitability growth of business being acquired
  • Source, length and credibility of forecasts
  • Finance mix

Creating the operating model

  • Sales, EBITDA and working capital
  • Capex and depreciation

Sources and uses of funds

  • Uses of funds: equity acquisition, refinanced debt, fees
  • Sources: debt capacity constraints; senior tranches; mezzanine

Building the debt schedules

  • Circularity issues
  • Capital repayment options
  • PIK interest
  • Revolver
  • Cash sweep
  • Debt waterfall

Tax

  • Tax treatment of interest 
  • Carry forward of tax losses

Equity return

  • IRR
  • Cash/money multiple

Sensitivity analysis

Prerequisite

A good knowledge of basic Excel functionality, which can be gained on Financial modelling - introduction.

The course starts at 9.00am. Lunch and refreshments are included.
6 CPD hours (where applicable). 

Booking Information

Date Location Price
21 July 2017 - 09:00 London Price: GBP 695.00
Member price: £625. CDS member price: £560. Plus VAT on all prices.
16 October 2017 - 09:00 London Price: GBP 695.00
Member price: £625. CDS member price: £560. Plus VAT on all prices.
20 December 2017 - 09:00 London Price: GBP 695.00
Member price: £625. CDS member price: £560. Plus VAT on all prices.


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Debt modelling (with LBO)

CIMA members and students should log in to MY CIMA before booking to receive the appropriate discount. Save up to 30% with the CIMA Corporate Discount Scheme (CDS). Find out more at: www.cimamastercourses.com/CDS

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If you have any queries please email or phone us on: +44 (0)3332 221608. Visit our booking page for information on how to book and pay.

The venue for this course will be confirmed 14 days before the scheduled date. 

CIMA Mastercourses are held in partnership with BPP.  

CIMA on demand is our range of online CPD courses specifically designed for busy finance and business professionals who need training that's convenient and will fit around their schedule. Find out more