Overview

This course provides an in-depth exploration of leveraged buyouts (LBOs) and mergers & acquisitions (M&A), emphasizing their strategic importance in investment banking. You will learn how deals are structured, analyzed, and executed, gaining insights into the critical financial and strategic elements that ensure a successful transaction. Throughout the course, learners will develop the skills to model LBOs, analyze financing structures, and assess the characteristics of prime LBO candidates. This practical knowledge will equip you to handle sell-side and buy-side M&A transactions, from preparation and negotiation to closing. What sets this course apart is its unique blend of theoretical frameworks and real-world deal execution. You'll master essential concepts like transaction structure and decision-making, while also gaining hands-on experience with LBO modeling and M&A deal-making. The course is designed for professionals in investment banking, private equity, and corporate finance, as well as anyone eager to understand the intricacies of high-stakes financial transactions. Prior knowledge of finance and accounting principles is recommended, but not mandatory. This course is part two of a three-course Specialization designed to provide a comprehensive learning pathway in this subject area. While it delivers standalone value and practical skills, learners seeking a more integrated and in-depth progression may benefit from completing the full Specialization. Copyright © 2022 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Used by arrangement with John Wiley & Sons, Inc.

Syllabus

Leveraged Buyouts

This module explores the structure and mechanics of leveraged buyouts, including key participants, financing strategies, and risk management. Learners will examine the characteristics of strong LBO candidates, analyze return metrics such as internal rate of return, and review common exit strategies. The module also covers the process of determining optimal financing structures and the implications of various debt instruments.

LBO Analysis

This module guides learners through the step-by-step process of building and analyzing a leveraged buyout (LBO) model. You will learn how to gather and organize financial data, input transaction structures, construct pro forma financial statements, and assess investment returns and valuation scenarios. By the end, you'll be able to perform comprehensive LBO analyses for investment and restructuring decisions.

Sell-Side M&A

This module guides learners through the full lifecycle of a sell-side M&A auction, from preparing marketing materials and structuring the auction process to evaluating bids and closing the transaction. Participants will gain practical insights into buyer engagement, due diligence, regulatory approvals, and financing strategies essential for maximizing value in M&A deals.

Buy-Side M&A

This module explores the motivations and strategies behind buy-side mergers and acquisitions, including key valuation methodologies and financing options. Learners will analyze the financial consequences of M&A transactions, such as accretion/dilution and balance sheet effects, through real-world scenarios and illustrative models. By the end, participants will be equipped to assess and structure successful acquisition deals.