December 2013
Intermediate to advanced
448 pages
9h 44m
English
book
Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity, + Website
by Paul Pignataro
Content preview from Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity, + Website
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PART One
Leveraged Buyout Overview
Aleveraged buyout (LBO) is a fundamental, yet complex acquisition commonly used in the investment banking and private equity industries. We will take a look at the basic concepts, benefits, and drawbacks of a leveraged buyout. We will understand how to effectively analyze an LBO. We will further analyze the fundamental impact of such a transaction and calculate the expected return to an investor. Last, we will spend time interpreting the variables and financing structures to understand how to maximize investor rate of return (IRR).
The three goals of this part are:
1. Understanding leveraged buyouts (leveraged buyout theory).
- Concepts.
- Purposes and uses.
2. Valuation overview (What is value?)
- Book value, market value, equity value, and enterprise value.
- Understanding multiples.
- Three core methods of valuation:
i. Comparable company analysis.ii. Precedent transactions analysis.iii. Discounted cash flow analysis.
3. Ability to understand a simple IRR analysis (leveraged buyout analysis).
a. Purchase price.
b. Sources and uses.
c. Calculating investor rate of return (IRR).
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.