LBO & Bankruptcy Transactions

The purpose of this course is to provide you with an overview of Leveraged Buy Outs (LBO) and Bankruptcy transactions. A primary objective is for you to acquire an ability to successfully understand, analyze and model an LBO transaction. To achieve this, you will be taught how to build financial models of the Target, working through various assumptions on leverage, profitability, returns and other financial ratios. You will also work through bankruptcy models – to understand when and how a firm may enter bankruptcy and how the firm and its equity and debt investors are affected. During the course, we will learn to: 1. LBO Strategy 2. Financial model of the firm 3. Effect of leverage, and modeling an LBO 4. Financial metrics for evaluating LBOs 5. Bankruptcy Strategy – accounting and legal implications. This course is recommended for those who intend to work in the financial services area – it will be helpful for those looking for a career in banking, corporate advisory services, treasury or corporate/financial strategy. Advising on LBO and bankruptcy transactions requires a strong finance and legal background. This course will get into some of the legal details, but it is not intended to be a course in law. It is expected that you have already taken courses in financial accounting and corporate finance and are interested in understanding and modeling corporate transactions. If you do not have a prior background, you are strongly advised to check with the instructor before enrolling in this course. This is not a course in excel, excel tools/techniques or about excel add-ins provided by data providers. There are many services provided by data providers and Wall Street Prep companies for those. This course will focus on the accounting, finance and economics of evaluating corporate situations and building models. Also, we assume that you are already proficient in Excel, since we will use a lot of Excel models in the course.