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

Informationen zum Autor PAUL PIGNATARO is the founder and CEO of the New York School of Finance (NYSF). He has over thirteen years of experience in investment banking and private equity in business mergers, acquisitions, restructurings, asset divestitures, asset acquisitions, and debt and equity transactions covering the oil, gas, power and utility, Internet and technology, real estate, defense, travel, banking, and service industries. Mr. Pignataro continues to participate on the training team, actively providing training at bulge bracket banks and M&A teams at corporations, and billion-dollar funds. Prior to his entrepreneurial endeavors, Mr. Pignataro worked at TH Lee Putnam Ventures, a $1 billion private equity firm affiliated with buyout giant Thomas H. Lee Partners. Prior to TH Lee, Mr. Pignataro worked in the investment banking department of Morgan Stanley. Klappentext A comprehensive look at the world of leveraged buyoutsThe 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 FinanceIf you're looking for the best way to hone your skills in this field, look no further than this book. Zusammenfassung A comprehensive look at the world of leveraged buyoutsThe 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 FinanceIf you're looking for the best way to hone your skills in this field, look no further than this book. Inhaltsverzeichnis Preface xi The Heinz Case Study xii How This Book Is Structured xiii Part One Leveraged Buyout Overview 1 Chapter 1 Leveraged Buyout Theory 3 Cash Availability, Interest, and Debt Pay-Down 3 Operation Improvements 4 Multiple Expansion 4 What Makes Good Leveraged Buyout? 4 Exit Opportunities 5 Is Heinz a Leveraged Buyout? 5 Chapter 2 What Is Value? 7 Book Value 7 Market Value 7 Enterprise Value 8 Multiples 12 Three Core Methods...

List of contents

Preface xi
 
The Heinz Case Study xii
 
How This Book Is Structured xiii
 
Part One Leveraged Buyout Overview 1
 
Chapter 1 Leveraged Buyout Theory 3
 
Cash Availability, Interest, and Debt Pay-Down 3
 
Operation Improvements 4
 
Multiple Expansion 4
 
What Makes Good Leveraged Buyout? 4
 
Exit Opportunities 5
 
Is Heinz a Leveraged Buyout? 5
 
Chapter 2 What Is Value? 7
 
Book Value 7
 
Market Value 7
 
Enterprise Value 8
 
Multiples 12
 
Three Core Methods of Valuation 14
 
Chapter 3 Leveraged Buyout Analysis 19
 
Purchase Price 19
 
Sources and Uses of Funds 22
 
IRR Analysis 33
 
Part Two Leveraged Buyout Full-Scale Model 49
 
Chapter 4 Assumptions 51
 
Purchase Price 57
 
Sources of Funds 63
 
Uses of Funds 69
 
Chapter 5 The Income Statement 75
 
Revenue 76
 
Cost of Goods Sold 76
 
Operating Expenses 77
 
Other Income 78
 
Depreciation and Amortization 80
 
Interest 80
 
Taxes 81
 
Nonrecurring and Extraordinary Items 82
 
Distributions 82
 
Shares 83
 
Heinz Income Statement 84
 
Last Twelve Months (LTM) 108
 
Income Statement--Projections 116
 
Chapter 6 The Cash Flow Statement 133
 
Cash Flow from Operating Activities 133
 
Cash Flow from Investing Activities 137
 
Cash Flow from Financing Activities 137
 
Financial Statement Flows Example 138
 
Heinz Cash Flow Statement 144
 
Heinz Last Twelve Months (LTM) Cash Flow 154
 
Cash Flow Statement Projections 160
 
Chapter 7 The Balance Sheet 179
 
Assets 179
 
Liabilities 182
 
Heinz Balance Sheet 184
 
Chapter 8 Balance Sheet Adjustments 199
 
Goodwill 200
 
Heinz Balance Sheet Adjustments 208
 
Chapter 9 Depreciation Schedule 221
 
Straight-Line Depreciation 222
 
Accelerated Depreciation 222
 
Deferred Taxes 227
 
Projecting Depreciation 231
 
Projecting Amortization 241
 
Projecting Deferred Taxes 244
 
Chapter 10 Working Capital 247
 
Asset 247
 
Liability 247
 
Operating Working Capital 248
 
Heinz's Operating Working Capital 251
 
Projecting Operating Working Capital 262
 
Operating Working Capital and the Cash Flow Statement 271
 
Chapter 11 Balance Sheet Projections 279
 
Cash Flow Drives Balance Sheet versus Balance
 
Sheet Drives Cash Flow 283
 
Balancing an Unbalanced Balance Sheet 301
 
Chapter 12 Debt Schedule and Circular References 309
 
Debt Schedule Structure 309
 
Modeling the Debt Schedule 310
 
Circular References 329
 
Automatic Debt Pay-Downs 337
 
Basic Switches 339
 
Finalizing the Model 339
 
Chapter 13 Leveraged Buyout Returns 351
 
Exit Value 351
 
Returns to 3G Capital 355
 
Multiple Expansion 361
 
Debt Pay-Down 364
 
Conclusion 364
 
Part Three Advanced Leveraged Buyout Techniques 365
 
Chapter 14 Accelerated Depreciation 367
 
MACRS 367
 
Accelerated versus Straight-Line Depreciation 372
 
Chapter 15 Preferred Securities, Dividends, and Returns to Berkshire Hathaway 377
 
Preferred Securities 377
 
Preferred Dividends 378
 
Returns to Berkshire Hathaway 388
 
Chapter 16 Debt Covenant Ratios, and Debt Fee Amortization 395
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Report

"Pignataro's step-by-step approach is ideal for anyone trying to learn or hone the analytical skills necessary to model the basic viability of an LBO, from the point of view of the company as well as the investor. He explains valuational concepts and how to capture them in Excel spreadsheets, the latter described down to the level of individual keystrokes.... Leveraged Buyouts is a self-contained course in rudimentary financial modeling (and a crash course in Excel as well). It's a perfect read for anyone wanting to enter the world of investment banking or private equity."
--Investing.com

Product details

• Authors: P Pignataro, Paul Pignataro, Paul (New York School of Finance (Nysf) Pignataro, Paul (New York School of Finance (NYSF)) Pignataro, Pignataro Paul
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 18.03.2014
• EAN: 9781118674543
• ISBN: 978-1-118-67454-3
• No. of pages: 448
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; The Wiley Finance Series
• Subjects: Social sciences, law, business > Business > Business administration; Anlagen und Wertpapiere, Kapitalanlage, Business & Economics / Investments & Securities / General, Business / Economics / Finance, BUSINESS & ECONOMICS / Mergers & Acquisitions, Finance & Investments, Finanz- u. Anlagewesen, Kapitalanlagen u. Wertpapiere, Investments & Securities