Advanced Loan Structuring Techniques

Course overview

What does ‘LBO’ mean? A financial transaction known as a leveraged buyout (LBO) involves the acquisition of a company utilizing both stock and debt. An Excel-based model known as a “LBO Model” is used to assess LBO deals. Both the acquired company’s and the acquiring company’s assets serve as loan collateral.

Typically, the acquiring business will spend the least amount of equity and fund the remaining amounts through sources other than debt and equity. The main goal of the LBO model is to give investors the tools they need to completely and properly evaluate deals and achieve the maximum potential risk-adjusted internal rate of return (IRR). The basic objective of the investment choice is to maximize returns on equity while maximizing prospective profits through the use of debt.

Participants will be equipped with comprehensive knowledge regarding an LBO model after taking this The Training Bee training course. Knowledge and expertise of all parts of LBO, including loan structure, pricing, and leveraged acquisition financing, will lessen the risk of financial loss to either party because this is a crucial model that might determine a company’s success or failure in terms of its financial assets and returns. You will get the knowledge and skills necessary to help organizations maximize the LBO model through this training.

Introduction

Leveraged finance is crucial to the financial sector because it enables investors and businesses to carry out major operations, such acquisitions, using a sizable amount of borrowed funding. This course explores the complex issues behind leveraged buyouts (LBOs), loan structure, loan pricing, and the financial modeling methods required for effective leveraged acquisitions.

Participants will gain a thorough grasp of LBO modeling, loan structure, and the strategic factors involved in leveraged acquisition finance through our in-depth course. You will examine the core ideas and real-world applications necessary to negotiate the intricacies of the leveraged finance landscape through engaging lectures, case studies, and hands-on activities.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

By the time you complete this course, you’ll not only be well-versed in LBO modeling, loan structuring, and leveraged acquisition financing, but you’ll also have a distinguished certification to prove it. Your professional reputation will be strengthened by this qualification, which will distinguish you as a leading authority in the field of leveraged finance.

We urge you to actively engage with the course material, work with your classmates, and apply your knowledge to real-world settings as you begin this rewarding learning journey. Every step of the way, our committed team of teachers and industry leaders is here to help you and make sure you acquire the knowledge and abilities required to succeed in the field of LBO modeling.

Learning Objectives

Upon completing Advanced Loan Structuring Techniques, participants will be able to:

• Get a thorough grasp of LBOs and LBO models to help one’s organization carry out such transactions successfully.
• Analyze requests for various forms of financing for LBO transactions on behalf of one’s organization, so presenting oneself as a trustworthy, credible worker.
• To reduce risks and maximize advantages, effectively assess and organize loans.
• Analyze key variables and offer recommendations for your organization’s LBO transactions.
• Prepare and organize project finance contracts that include all relevant provisions and risks in order to safeguard your company from risk and financial loss. This will demonstrate your expertise and open up more prospects for professional advancement.
• Analyze the organization’s current systems and provide information on its real financial situation and capacity to execute such transactions.

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Journaling – This consists of setting a timer and letting your thoughts flow, unedited and unscripted recording events, ideas, and thoughts over a while, related to the topic.
• Social learning – Information and expertise exchanged amongst peers via computer-based technologies and interactive conversations including Blogging, instant messaging, and forums for debate in groups.
• Project-based learning
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.
• Presentations – Participants will be presented with multimedia tools such as videos and graphics to enhance learning. These will be delivered engagingly and interactively.

Training Medium

This Advanced Loan Structuring Techniques training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• Give a definition of a leveraged buyout (LBO) and describe its main function in the financial sector.
• Identify the main elements of an LBO model and explain how they play a part in determining whether a leveraged purchase is financially feasible.
• What key factors must be taken into account when designing loans for leveraged purchases, and how does this vary from conventional loan structuring?
• Describe the variables that affect loan price in leveraged acquisition finance and how lenders evaluate risk in these deals.
• Describe the various financing options, such as debt and equity instruments, that are employed in leveraged acquisitions.
• Share any prior expertise you may have in loan structure, LBO modeling, or leveraged acquisition financing.

Course Modules

This Advanced Loan Structuring Techniques covers the following topics for understanding the essentials of the Agile Workplace:

Module 1 – LBO characteristics

• Consistent financial flows
• Comparably low fixed costs
• Currently, there is not much debt.
• Valuation
• Powerful management group

Module 2 – LBO capital structure components

• A bank loan
• Subordinated debt and high yield debt
• A mezzanine loan
• Equity
• Credit statistics
• Rate of return for the sponsor

Module 3 – LBO modeling steps

• Assumptions
• Financial records
• Balance statement for transactions
• Plans for debt and interest
• Credit statistics
• Prices of return within and discounted cash flow

Module 4 – Critical Credit Parameters in an LBO Model

• Debt/EBITDA
• Ratio of interest coverage
• Ratio of debt service to income
• Ratio of fixed charge coverage

Module 5 – Financial statements from the past

• Income declaration
• Sheet of balances
• Flow of Funds Statement
• Scheduling materials
• Allocation of purchase price and goodwill

Module 6 – Financial Statements Projection

• Prediction setup
• Income declaration
• Sheet of balances
• Scheduling materials
• Flow of Funds Statement

Module 7 – Approaches to LBO Financing

• Purchaser finance
• Finance for equipment
• Own money
• Older debt
• A lower level of debt
• A mezzanine loan

Module 8 – Loan Organization

• Matching of purpose, term, and repayment
• Loan agreements
• Loan covenants and agreements
• Charges and interest rates
• The cost of hazards
• Relating cost and risk to capital sufficiency

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• Consider the Leveraged Buyout (LBO) concept and its main objective in the banking sector. What new information about LBO transactions and their importance in corporate finance has the course given you?
• Identify the essential elements of an LBO model as they are taught throughout the course. How do these elements go into determining if a leveraged purchase is financially feasible?
• Talk about the key factors to keep in mind when arranging loans for leveraged acquisitions, as taught in the course. How has this information improved your comprehension of the particular difficulties and possibilities associated with arranging loans for these transactions?
• Describe the course material’s impact on the variables affecting loan price in leveraged acquisition financing. How do lenders evaluate risk and set loan terms in these situations.

Lessons Learned

Leveraged Buyouts (LBOs): You now have a thorough grasp of LBOs and their importance to the financial sector. LBOs are essential to corporate finance because they let investors buy businesses with a large amount of debt financing.

LBO Modeling Techniques: The training has given you the knowledge and skills you need to accurately assess the financial viability of leveraged acquisitions. Making wise financial decisions requires these modeling skills.

The particular difficulties and factors to be taken into account when arranging loans for leveraged acquisitions. In order to manage risk and make sure that transactions are successful, it is crucial to understand how to arrange loans properly.

“Maximizing Financial Potential: Using Acquisition Power.”