Advanced Private Equity & Valuation Workshop

A four day intensive, practical training programme combining a review of the latest valuation theory with real life case studies and team negotiation role plays. Featuring: A thorough and insightful review of the theory of CAPM and valuation An insight into the different approaches to valuation of different financial practitioners Valuation from the perspective of the private equity fund manager Combining the valuation process into equity investment negotiations Investment process and structures of private equity funds Special valuations: young companies, companies in difficulty and banks Advanced investment structures, MBOs and MBIs The private equity approach to enhancing the value of a company Emerging markets Tips and techniques for raising private equity finance Delegate profile In order to gain the full benefit of the course, participants should be numerate and be familiar with the basic elements of corporate finance, such as company valuation and financial forecasting. Basic understanding of the different types of financial instruments such as equities, bonds, debt, etc is useful. Good English language skills are required. Who should attend? This programme will be of interest to company executives involved in business development and acquisition work and professionals at all levels of seniority who wish to gain insight into venture capital, such as: Commercial & Investment Bankers Company & Financial Analysts Management Consultants Directors of Finance Venture Capitalist Accountants Lawyers
Day 1 Morning session The private equity approach to valuation The credibility of PE valuation compared to others The exit driven perspective Relation between transformational active management and valuation The empirical techniques used by PE practitioners Complete overview of valuation theory Weighted average cost of capital Risk premiums and Beta Terminal value estimation Multiples based valuation Dividend discount and other models Exercise: delegates will be walked through application exercises of DCF and multiples valuation Putting the theory into a 'real money' context Considerations regarding return The emerging markets environment The conflicts and limitations of valuations by consultants and academics Afternoon session Simulation exercise: delegates will be divided into groups and perform a full valuation of Datamat, an Italian IT company. They will prepare a presentation of their results for the assembled class. Day 2 Morning session Introduction to private equity Historic evolution and the current landscape Size and growth of the market The three pillars: venture, expansion and buyouts Other specialist subsets: mezzanine, funds of funds, secondaries Emerging markets Valuation of growth companies Growth companies as part of the PE portfolio Characteristics of growth companies The 'classic' venture capital valuation approach An adapted DCF methodology for valuation Investment processes & structures of a PE fund The investment pipeline Review of a PE term sheet Approach to due diligence The different levels and rounds of equity The role of preferred shares Private equity exits The investment horizon of a PE fund Exits to strategic investors Exits through Initial Public Offerings Exits by MBO or leveraged recapitalisations The new trend of exits through secondary transactions The implications for PE valuation Afternoon session Simulation exercise: delegates will be divided into groups and will perform a valuation of Frame Media, a young specialist B2B media company. They will prepare a presentation of their results to the wider class. Day 3 Morning session Private equity valuation and dealmaking in difficult times The rerating of risk Developing the right adapted valuation scenarios The approach to assessing opportunities Special areas for due diligence 'Anti-crisis' investment structures Characterisitics of portfolio companies in difficulty Valuation and characteristics of troubled companies The four different types of troubled company Estimating failure risk Administration vs. bankruptcy Case study: review of Panini, an Italian publishing company in financial crisis Valuation of banks Types of financial firms Characteristics of financial service firms Dividend methods of valuation Cash flow to equity Excess return models Asset based valuation Relative valuation Investing in funds The key elements from the manager to the back office 13 case studies of failed funds: from fraud to incompetence Best practise for assessing funds and fund managers Afternoon session Simulation exercise: delegates will be divided into groups of investors and will assess a pitch by an aspiring PE fund manager. They will develop a points based rating methodology to score the different elements of the GP's value proposition. Day 4 Morning session Advanced PE investment structures and their valuation impact Preference shares Mezzanine structures Use of option and pricing challenges Worked examples of different structures and their risk mitigation impact Corporate and management organisation of a PE fund The different types of corporate structures Use of offshore vehicles in structuring a PE fund The remuneration and motivation of a PE management team Main management challenges and pitfalls of a PE fund Introduction to advanced topics in PE Fundraising of a PE fund Funds of funds and their role in the market The secondaries market Sponsor driven funds Emerging markets private equity How to advise a company on raising PE finance How to manage a network of relations with PE funds Preparing the initial pitch Creating the appropriate documentation for the raising of PE finance Aligning the exit driven approach of a PE fund with the objectives of the entrepreneur and management Creating 'win-win' investment structures Techniques for overcoming valuation and other issues Afternoon session Simulation exercise: delegates will be divided into groups and will simulate a negotiation between a management team about to launch a PE fund; and with the main investor sponsor of the fund. They will agree the fund structure, institutional bodies and remuneration scheme.