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Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity, + Website

Book Description

A comprehensive look at the world of leveraged buyouts

The private equity industry has grown dramatically over the past twenty years. Such investing requires a strong technical know-how in order to turn private investments into successful enterprises. That is why Paul Pignataro has created Leveraged Buyouts + Website: A Practical Guide to Investment Banking and Private Equity.

Engaging and informative, this book skillfully shows how to identify a private company, takes you through the analysis behind bringing such an investment to profitability—and further create high returns for the private equity funds. It includes an informative leveraged buyout overview, touching on everything from LBO modeling, accounting, and value creation theory to leveraged buyout concepts and mechanics.

  • Provides an in-depth analysis of how to identify a private company, bring such an investment to profitability, and create high returns for the private equity funds

  • Includes an informative LBO model and case study as well as private company valuation

  • Written by Paul Pignataro, founder and CEO of the New York School of Finance

If you're looking for the best way to hone your skills in this field, look no further than this book.

Table of Contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright Page
  5. Dedication
  6. Preface
    1. THE HEINZ CASE STUDY
    2. HOW THIS BOOK IS STRUCTURED
  7. Part One: Leveraged Buyout Overview
    1. Chapter 1: Leveraged Buyout Theory
      1. CASH AVAILABILITY, INTEREST, AND DEBT PAY-DOWN
      2. OPERATION IMPROVEMENTS
      3. MULTIPLE EXPANSION
      4. WHAT MAKES GOOD LEVERAGED BUYOUT?
      5. EXIT OPPORTUNITIES
      6. IS HEINZ A LEVERAGED BUYOUT?
    2. Chapter 2: What Is Value?
      1. BOOK VALUE
      2. MARKET VALUE
      3. ENTERPRISE VALUE
      4. MULTIPLES
      5. THREE CORE METHODS OF VALUATION
    3. Chapter 3: Leveraged Buyout Analysis
      1. PURCHASE PRICE
      2. SOURCES AND USES OF FUNDS
      3. IRR ANALYSIS
  8. Part Two: Leveraged Buyout Full-Scale Model
    1. Chapter 4: Assumptions
      1. PURCHASE PRICE
      2. SOURCES OF FUNDS
      3. USES OF FUNDS
    2. Chapter 5: The Income Statement
      1. REVENUE
      2. COST OF GOODS SOLD
      3. OPERATING EXPENSES
      4. OTHER INCOME
      5. DEPRECIATION AND AMORTIZATION
      6. INTEREST
      7. TAXES
      8. NONRECURRING AND EXTRAORDINARY ITEMS
      9. DISTRIBUTIONS
      10. SHARES
      11. HEINZ INCOME STATEMENT
      12. LAST TWELVE MONTHS (LTM)
      13. INCOME STATEMENT—PROJECTIONS
    3. Chapter 6: The Cash Flow Statement
      1. CASH FLOW FROM OPERATING ACTIVITIES
      2. CASH FLOW FROM INVESTING ACTIVITIES
      3. CASH FLOW FROM FINANCING ACTIVITIES
      4. FINANCIAL STATEMENT FLOWS EXAMPLE
      5. HEINZ CASH FLOW STATEMENT
      6. HEINZ LAST TWELVE MONTHS (LTM) CASH FLOW
      7. CASH FLOW STATEMENT PROJECTIONS
    4. Chapter 7: The Balance Sheet
      1. ASSETS
      2. LIABILITIES
      3. HEINZ BALANCE SHEET
    5. Chapter 8: Balance Sheet Adjustments
      1. THE BUYER IS PAYING FOR
      2. THE BUYER IS RECEIVING
      3. GOODWILL
      4. HEINZ BALANCE SHEET ADJUSTMENTS
    6. Chapter 9: Depreciation Schedule
      1. STRAIGHT-LINE DEPRECIATION
      2. ACCELERATED DEPRECIATION
      3. DEFERRED TAXES
      4. PROJECTING DEPRECIATION
      5. PROJECTING AMORTIZATION
      6. PROJECTING DEFERRED TAXES
    7. Chapter 10: Working Capital
      1. ASSET
      2. LIABILITY
      3. OPERATING WORKING CAPITAL
      4. HEINZ’S OPERATING WORKING CAPITAL
      5. PROJECTING OPERATING WORKING CAPITAL
      6. OPERATING WORKING CAPITAL AND THE CASH FLOW STATEMENT
    8. Chapter 11: Balance Sheet Projections
      1. CASH FLOW DRIVES BALANCE SHEET VERSUS BALANCE SHEET DRIVES CASH FLOW
      2. BALANCING AN UNBALANCED BALANCE SHEET
    9. Chapter 12: Debt Schedule and Circular References
      1. DEBT SCHEDULE STRUCTURE
      2. MODELING THE DEBT SCHEDULE
      3. CIRCULAR REFERENCES
      4. AUTOMATIC DEBT PAY-DOWNS
      5. BASIC SWITCHES
      6. FINALIZING THE MODEL
    10. Chapter 13: Leveraged Buyout Returns
      1. EXIT VALUE
      2. RETURNS TO 3G CAPITAL
      3. MULTIPLE EXPANSION
      4. DEBT PAY-DOWN
      5. CONCLUSION
  9. Part Three: Advanced Leveraged Buyout Overview
    1. Chapter 14: Accelerated Depreciation
      1. MACRS
      2. ACCELERATED VERSUS STRAIGHT-LINE DEPRECIATION
    2. Chapter 15: Preferred Securities, Dividends, and Returns to Berkshire Hathaway
      1. PREFERRED SECURITIES
      2. PREFERRED DIVIDENDS
      3. RETURNS TO BERKSHIRE HATHAWAY
    3. Chapter 16: Debt Covenant Ratios, and Debt Fee Amortization
      1. COVERAGE RATIOS
      2. LEVERAGE RATIOS
      3. DEBT FEE CAPITALIZATION AND AMORTIZATION
    4. Chapter 17: Paid-in-Kind Securities
  10. Appendixes
  11. Appendix A: Model Quick Steps
  12. Appendix B: Financial Statement Flows
    1. INCOME STATEMENT TO CASH FLOW
    2. CASH FLOW TO BALANCE SHEET
  13. Appendix C: Excel Hot Keys
  14. About the Companion Website
  15. About the Author
  16. Index