The Mechanics of Private Equity : Demystifying Private Equity Fundamentals and Leverage Buyout (LBO) Valuation Modelling for Startup Founders, Entrepreneurs, Fund Managers, and Investment Bankers

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(as of Oct 08, 2024 10:18:31 UTC – Details)

PrivateEquity is the single most important source of twenty-first-century wealth creation; many billionaires can trace their fortunes directly back to Private Equity. The best-known are those associated with Blackstone Group’s Stephen Schwarzman and KKR’s Henry Kravis and George Roberts. The co-founders at Carlyle are led by David Rubenstein, William Conway, and Daniel D’Aniello, while Apollo Global Management has Leon Black.

The Forbes Billionaire list is cluttered with individuals with backgrounds in Private Equity or fortunes tied to Private Equity. Despite such an impact on the Global economy and the markets, Private Equity functions behind closed doors.

The Mechanics of Private Equity aims to offer practical advice and closely examine the inner workings of a clandestine and lucrative asset class.

As part of “The Mechanics of Private Equity Advantage,” you will be granted access to all the Leverage Buyout (LBO) Excel Models created within this title to enhance your learning experience.

This title suits any finance enthusiast, rookie investment banker, founder, or business owner. Its concept combines theoretical knowledge and hands-on experience through multiple case studies tailored to varied skill sets with detailed Excel Models.

In this book, you will learn:Basic Principles of Private Equity – Learn the bare essentials of what you need to know to talk with confidence about Private EquitySourcing Deals – Understand how private equity funds source deals for proprietary and process-driven deals.Executing investments – Obtain information about the investment process in new private equity fund deals.Portfolio Management – Explain how private equity funds generate value from their portfolio.Exit Investments – Use specific examples to show how private equity funds sell their investments and book the associated profit.Private Equity Fund Considerations – Learn the basic principles of how funds are managed and should be benchmarkedBreaking into Private Equity: Learn the strategies already known to improve your chances of being hired in the private equity industry.This title will help you develop a robust understanding of leveraged buyouts through practical exercises and Excel models. It will also shed light on the complexity of LBO deals through various financial instruments, covenants, and structures.

You will learn how to respond to practical questions like maximum debt capacity, lenders in an LBO, and types of value creation LBO strategies.

Deep-diving into the following case study – Dell’s legendary LBO deal, known as the “Deal of the Century.”
Carry out two in-depth Leveraged Buyout case studies to give firsthand skills, such as “hands-on skills,” and bridge the apparent gaps between theoretical principles and their realizations.Napkin LBO, Master of the art of putting together a Simplified One-Page Financial Model, is commonly used in investment banking interviews; hence, it is excellent for beginners to get their basics right.Sophisticated LBO Modeling Practical Case Study (Excel Models Included) – Develop detailed financial models, including transaction costs, goodwill, fixed asset roll forward, P&L, balance sheet, cash flow, Equity, and debt schedules.Enhancing your financial modeling skills while executing an involved, multi-layered LBO valuation is what distinguishes players in this intensely competitive field known as finance.I’m ecstatic to introduce you to “The Mechanics of Private Equity.” Join me today to uncover the “Private Equity” World of Opportunity for your Professional and Business Growth.

From the Publisher

The Step-by-Step LBO Model: Your Path to PE Mastery

Why LBO Modeling Matters

Leveraged Buyout (LBO) modeling is the cornerstone of private equity analysis. It’s how PE firms determine whether a deal will be profitable, and it’s a skill that can set you apart in your finance career.

What You’ll Learn

Deal Structuring: Understand how to structure an LBO deal, including the optimal mix of debt and equity.Debt Schedules: Master the intricacies of creating detailed debt schedules, including senior debt, mezzanine financing, and PIK notes.Financial Statement Modeling: Learn how to project post-acquisition income statements, balance sheets, and cash flow statements.Working Capital Analysis: Understand the impact of working capital on cash flows and deal profitability.Sensitivity Analysis: Create data tables and scenarios to test the robustness of your model under different assumptions.Returns Analysis: Calculate key metrics like IRR, MOIC, and cash-on-cash returns to evaluate deal attractiveness.

The One-Page Napkin Model: Your Secret Weapon

Learn the art of the “Napkin LBO”—a simplified one-page financial model that’s often the make-or-break moment in investment banking interviews. With our guidance, you can craft these models quickly and accurately, setting you apart from other candidates.

PE firms prize the ability to quickly sketch out an LBO on the back of a napkin. It shows that you can think on your feet and understand the key drivers of a deal.

The Dell LBO Case Study: Learn from the “Deal of the Century”

Our Step-by-Step Leverage Buyout Model isn’t just theory—it’s based on actual deals that have shaped the financial landscape. You’ll dissect the “Deal of the Century”—Dell’s legendary LBO—and understand why it earned this title.

Walk through the $24.4 billion deal that took Dell private in 2013.

You’ll:

Analyze the deal structureUnderstand the rationale behind the leveraged buyoutModel the financial projectionsEvaluate the returns for the PE investors

Beyond the Models: Comprehensive PE Knowledge

Deal Sourcing

Learn how PE firms find their deals:

Proprietary deal flow strategiesWorking with investment banksIndustry focus and specialization

Due Diligence

Understand what PE firms look for before closing a deal:

Financial due diligence checklistOperational due diligence best practicesLegal and regulatory considerations

Value Creation Strategies

Discover how PE firms increase the value of their portfolio companies:

Operational improvementsAdd-on acquisitionsFinancial engineering

Exit Strategies

Learn how PE firms realize their returns:

IPO processesStrategic salesSecondary buyouts

Real Learning for Real Results

Work through multiple interactive LBO case studies and apply what you’ve learned in realistic scenarios.

Customizable Models

All our Excel models are unlocked and fully customizable.

You can adapt them to your specific needs or use them as a starting point for your own models.

Your Career Roadmap

Learn the steps you need to take to land a job in private equity:

Educational requirementsNecessary work experienceNetworking strategiesInterview Preparation

Investing in “The Mechanics of Private Equity” is investing in your future—a comprehensive guide to private equity. Private Equity is reshaping the business world. The strategies you’ll learn in “The Mechanics of Private Equity” are the same ones used to create billion-dollar fortunes and transform industries.

Whether you’re aiming for a career in PE, looking to enhance your finance skills, or seeking to understand this influential sector, this book is your essential guide.

ASIN ‏ : ‎ B0DHB7G26T
Publication date ‏ : ‎ September 16, 2024
Language ‏ : ‎ English
File size ‏ : ‎ 33072 KB
Simultaneous device usage ‏ : ‎ Unlimited
Text-to-Speech ‏ : ‎ Enabled
Enhanced typesetting ‏ : ‎ Enabled
X-Ray ‏ : ‎ Not Enabled
Word Wise ‏ : ‎ Enabled
Print length ‏ : ‎ 314 pages