Leveraged Buyouts

Name: Leveraged Buyouts
Author: Paul Pignataro

A Practical Guide to Investment Banking and Private Equity + Website

Gebonden Engels 2014 1e druk 9781118674543

122,17

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Samenvatting

The private equity industry is thriving. To get some idea of just how fast the industry has grown over the past decade, one only need consider that private equity firms invested nearly 90% more capital in 2010 than they did in 2009, for a total of $225 billion invested in more than 3,000 transactions, compared to $119 billion the year before. And that trend has continued at a rapid clip in the three years since. But turning private investments into successful enterprises, while pulling down promised, or better than expected, returns for partners takes a particular skill set and technical know-how not readily acquired by those outside the industryuntil now. In Leveraged Buyouts , Paul Pignataro, founder and CEO of the world-renowned New York School of Finance, takes a unique approach to educating you in the tools of the private equity tradeby building on a book-length case study of the 2013 Berkshire Hathaway/3G Capital $28 billion Heinz Co. LBO. How viable is such a buyout? How are Berkshire Hathaway and 3G Capital finding value in such an investment? What are their potential returns? Clearly and concisely, Paul Pignataro explains the analytical approach used by Wall Street analysts to answer such questions, guiding you, step by step, through the process of developing a sophisticated financial model. Assuming the role of a Wall Street analyst, you get an up-close and personal look at how the modeling process works, while acquiring the tools for developing your own analyses. You'll evaluate the potential leveraged buyout of Heinz, determining its current financial standing, projecting its future performance, and estimating the potential return on investment. And to help further your LBO education, the Leveraged Buyouts companion website supplies you with downloadable models that bring all the methods described in the book to life, while offering you an opportunity to hone your analytical skills by building an original Heinz Co. LBO model from scratch. You'll also find chapter questions and answers to help you test your knowledge of the material presented in the book. Whether you are an investor or fund manager looking to make your own acquisitions, or you aspire to a career in the burgeoning private equity or investment banking industries, Leveraged Buyouts gets you up and runningfastwith the tools and techniques you need to perform expert LBO analyses. If you're a private equity or investment banking professional looking for a reliable way to refresh and fine-tune your analytical skills, this book definitely is for you as well.

Specificaties

ISBN13:9781118674543

Taal:Engels

Bindwijze:gebonden

Aantal pagina's:448

Uitgever:John Wiley & Sons

Druk:1

Verschijningsdatum:18-3-2014

Hoofdrubriek:Financieel management

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Inhoudsopgave

Preface The Heinz Case Study How This Book is Structured Part I: Leveraged Buyout Overview Chapter 1: Leveraged Buyout Theory Cash Availability, Interest, and Debt Pay Down Operation Improvements What Is a Good Leveraged Buyout? Is Heinz a Leveraged Buyout? Chapter 2: What is Value? Book Value Market Value Enterprise Value Multiples Three Core Methods of Valuation Chapter 3: Leveraged Buyout Analysis Purchase Price Sources and Uses of Funds IRR Analysis Part II: Leveraged Buyout Full Scale Model Chapter 4: Assumptions Chapter 5: The Income Statement Revenue Cost of Goods Sold Operating Expenses Other Income Depreciation and Amortization Interest Taxes Non-Recurring and Extraordinary Items Distributions Shares Heinz Income Statement Last Twelve Months (LTM) Income Statement – Making Projections Chapter 6: Cash Flow Statement Cash from Operating Activities Cash from Investing Activities Cash from Financing Activities Heinz Cash Flow Statement Heinz Cash Flow Last Twelve Months (LTM) Cash Flow Statement – Making Projections Chapter 7: The Balance Sheet Assets Liabilities Heinz’s Balance Sheet Chapter 8: Balance Sheet Adjustments Heinz Balance Sheet Adjustments Chapter 9: Depreciation Schedule Straight Line Depreciation Accelerated Depreciation Deferred Taxes Projecting Depreciation Amortization Deferred Taxes Chapter 10: Working Capital Asset Current Asset Liability Operating Working Capital Heinz’s Operating Working Capital Projecting Operating Working Capital Operating Working Capital and the Cash Flow Statement Chapter 11: Balance Sheet Projections Balancing an Unbalanced Balance Sheet Chapter 12: Debt Schedule and Circular References Debt Schedule Structure Modeling the Debt Schedule Circular References Automatic Debt Paydowns Basic Switches Finalizing the Model Chapter 13: Leveraged Buyout Returns Exit Multiples Returns to 3G EBITDA Improvements Conclusion Part III: Advanced LBOs Chapter 14: Accelerated Depreciation MACRS Accelerated vs. Straight Line Depreciation Chapter 15: Preferred Securities, Dividends, and Returns to Berkshire Hathaway Preferred Securities Preferred Dividends Returns to Berkshire Hathaway Chapter 16: Debt Covenant Ratios, and Debt Fee Amortization Coverage Ratios Leverage Ratios Debt Fee Capitalization and Amortization Chapter 17: Paid in Kind Securities Chapter 18: Closing Adjustments Appendices Appendix 1: Model Quick Steps Appendix 2 – Financial Statement Flows Appendix 3 – Excel Hotkeys About the Companion Website About the Author Index