Training

For an in-house assignment we always conduct an initial assessment of –

• what clients’ requirements are,

• level of preparedness participants have, and

• what type of knowledge or techniques are most likely to boost efficiency and/or cover any potential skill gaps.

Based on our assessment we prepare our proposal containing detailed brief, proposed structure of the course, recommended format and duration.

If the client is happy with our proposal, we can deploy at client’s site within two weeks.

Our most popular packages are two day training sessions comprised of tailored content from our public P101 and IB101 packages. We also do one-to-one senior and mid-level coaching for lateral hires outside of private equity and/or investment banking industries.

Below you can find some additional topics that clients have asked us to deliver in the past.

• DCF vs. Multiples Valuation: anyone who valued an asset at least once would know the difference. Yet, valuation is rather state of the art subject than a rigid technique. Case studies from this module demonstrate relationship between various valuation methods and their link to fundamental corporate finance, or lack thereof. Complementary considerations are given with respect to how to best interpret conflicting valuation results yielded from different valuation approaches

• Revisiting Cost of Capital: every banker knows or should know WACC formula, few remember fundamental limitations upon which the formula is based. Hence, it is helpful to be aware when one is within or outside of solid theoretical standing. Additional thoughts are given to what one needs to do when the situation at hand is clearly outside of the theoretical framework

• Joint-Ventures, Spin-offs and Carve-outs: all three are classical but often overlooked types of M&A activities. Definitions, structural aspects and strategic rationale for each type of transaction, discussion on how valuations and deal processes would differ for each type of the transaction. Mini case studies illustrating common pitfalls, issues, advantages and disadvantages

• Term Sheets vs. SPAs: an outline of a good term sheet, examples of bad term sheets, why term sheets matter in a transaction environment, bridging term sheets to SPAs, general discussion on SPA’s structure, example of reps and warranties, understanding different ways of measuring losses, concept of indemnity vs. a general warranty, why domicile of a deal and subject entity matters irrespective of the law referenced in the transaction documentation. Material complemented by mini-cases and examples from tutor`s experience

• Accounting vs. Cash Flow: it is generally accepted that only cash matters from valuation perspective. However, cash flows are not observed directly but are extracted from an accounting system. Hence, it is important to understand common pitfalls of translating accounting data into valuation inputs. Examples are given whereas different accounting regimes would yield optically different results. Revisiting Firm Value / Enterprise Value interpretation based on different reporting standards. Making sure the result makes sense for the task at hand

• Ratings vs. Credit Ratios: general framework outlining relationship of agencies’ rating vs. credit ratios, discussion on corporates’ preferences for tapping bond or bank markets, fundamental differences between senior and junior debt layers in a capital structure, contractual vs. structural subordination, maintenance vs. incurrence covenants. Numerical and structural examples are provided for each topic covered

• Restructuring Analysis Framework: general priority rules and how one can model them in a corporate restructuring scenario. Understanding why actual recoveries are skewed towards junior elements of capital structure based on agency theory and real life outcomes. What structural and legal protection senior capital can seek to avoid unpleasant outcomes. Discussion on what type of assets are likely to have lower recoveries than others. Examples of modelling tools used in analysis of debt recovery scenarios

• Private Equity / LBOs: understanding fundamental and practical drivers for LBO/PE set-up and how it relates to standard valuation / corporate finance theory framework. Analysis of universal valuation basics vs. additional elements not present outside of PE/LBO world such as hybrid debt structures, mezzanines and the like. Modelling examples for the above. Illustrations of deal optics vs. value including roll-over equity, seller notes and others peculiar structural elements commonly present in LBO/MBO transactions