Private Equity: Leveraged Buyouts (LBOs)
What you'll learn
- Understand the fundamentals of private equity: Gain a solid understanding of the key concepts, principles, and processes involved in private equity investments,
- Master leveraged buyout (LBO) transaction evaluation: Develop the skills to evaluate leveraged buyout transactions using the adjusted present value (APV) method
- Apply qualitative analysis techniques: Acquire the ability to perform a qualitative analysis of a private equity transaction, examining factors such as growth p
- Build advanced financial models: Enhance your financial modeling skills by constructing Excel models that capture the complexities of leveraged buyout transacti
- Develop decision-making capabilities: Sharpen your decision-making skills by evaluating a private equity transaction from multiple perspectives, including those
- Prepare for finance careers: Equip yourself with the practical skills and knowledge sought after by employers in the finance industry. Enhance your career prosp
- There are no specific prerequisites for this course. It is designed to accommodate both beginners and individuals with some prior knowledge in finance or related fields. However, having a basic understanding of financial concepts such as free cash flows and the net present value method would be beneficial. Familiarity with Excel and financial modeling will also be advantageous, but not mandatory, as the course provides guidance and examples to support learning in these areas.
- Microsoft Excel: The course heavily utilizes Excel for financial modeling exercises. It is recommended to have Excel installed on your computer. While not mandatory, having a basic understanding of Excel functions and formulas will be helpful.
- Willingness to learn and engage: The course requires a proactive approach to learning and active engagement with the course materials, including watching lectures and completing assignments.
*** You will have full access to the spreadsheets used in the videos ***
Welcome to the Private Equity course, where you will master the evaluation of leveraged buyout transactions. I'm Carlos Martínez, a seasoned expert in finance with a Ph.D. in Management from the prestigious University of St. Gallen. I have presented my groundbreaking research on entrepreneurial financing at renowned academic conferences and doctoral colloquiums worldwide, including those held at the University of Tel Aviv, Politecnico di Milano, University of Halmstad, and MIT. Additionally, my work has been published as a chapter in the highly regarded book "New Frontiers in Entrepreneurial Finance Research," co-edited by established professors in the field.
In this comprehensive course, you will gain the indispensable skills and knowledge used by general partners of private equity firms. By mastering the adjusted present value method, you will be able to confidently evaluate leveraged buyout transactions. These sought-after skills are invaluable for ambitious university students and young professionals aspiring to excel in investment banking, corporate finance, or consulting.
Through engaging presentations, hands-on tutorials, and practical assessments, this course takes a dynamic and immersive approach. You will delve into real-world case studies, evaluating a private equity transaction from two perspectives: as a corporation considering divestment of one of its divisions, and as a private equity firm assessing the acquisition of such a division.
We will begin by providing a solid theoretical foundation on private equity and its investment process. Next, we will dive into a captivating teaching case centered around the leveraged buyout of DuPont's Coatings Division. Through qualitative analysis, you will gain insights into the various value drivers intrinsic to such transactions, including EBITDA growth, multiple arbitrage, and financial leverage. Furthermore, you will develop and utilize an Excel model to explore different valuation scenarios, giving you hands-on experience and invaluable skills.
While leveraged buyouts in private equity are typically covered at the undergraduate level in corporate finance courses, this course is also suitable for graduate-level students, particularly those studying finance for entrepreneurs. It is designed for motivated individuals from diverse academic backgrounds, including business, finance, accounting, law, and other related fields, all with a shared interest in pursuing rewarding careers in investment banking, corporate finance, and financial consulting. This intermediate-level course assumes a basic understanding of free cash flows and the net present value method.
Take a closer look at the course description, and I am excited to welcome you on this transformative journey of mastering leveraged buyouts in private equity. Your future in finance awaits!
Who this course is for:
- University students: Undergraduate and graduate students studying finance, economics, accounting, or related fields who want to deepen their understanding of private equity and gain practical skills in evaluating leveraged buyout transactions.
- Young professionals: Individuals who have recently entered the workforce or are early in their careers, with a background in finance, accounting, or related areas, seeking to enhance their knowledge and capabilities in investment banking, corporate finance, or financial consulting.
- Finance enthusiasts: Individuals who have a keen interest in finance and want to explore the world of private equity and leveraged buyouts, regardless of their academic or professional background.
- Aspiring investment analysts: Individuals aspiring to become investment analysts or work in investment firms, private equity companies, or financial advisory roles, who want to acquire the necessary skills to evaluate and analyze leveraged buyout transactions.
- Finance and business professionals: Professionals already working in finance or related fields who are looking to expand their expertise and gain a solid understanding of private equity and the evaluation of leveraged buyout transactions.
- Entrepreneurs and business owners: Individuals involved in entrepreneurship or running their own businesses who want to understand the private equity landscape and gain insights into how leveraged buyouts can impact their industries.
(English profile below)
Carlos es un apasionado del método de casos de enseñanza, coautor de más de 25 de ellos en las áreas de finanzas, estrategia, operaciones y desarrollo sostenible. Algunos de estos han sido incluidos en las bases de casos de prestigiosas escuelas de negocio como Harvard, Michigan e IESE.
Es Ingeniero Industrial y Master en Finanzas de la Universidad Centroamericana, MBA con distinción de INCAE Business School y Ph.D. en Management de la Universidad de San Galo, Suiza. Ha orientado su investigación hacia el impacto de la información social, ambiental, y de gobierno corporativo (ESG) en los mercados financieros. También ha desarrollado estudios relacionados con el acceso al financiamiento emprendedor en contextos con vacíos institucionales.
Su investigación ha sido presentada en prestigiosas conferencias como el coloquio doctoral del Alliance for Research on Corporate Sustainability (MIT, EEUU), la conferencia especializada “From start-up to scale-up” del Academy of Management (University of Tel-Aviv, Israel), la tercera conferencia en Entrepreneurial Finance (Politecnico de Milano, Italia) y el Congreso Anual del European Accounting Association (Valencia, España).
Carlos es coautor de cinco artículos en revistas científicas arbitradas (peer-reviewed) y dos capítulos en libros de editoriales de prestigio (Edward Elgar y World Scientific Publishing). Su investigación ha sido citada por el International Integrated Reporting Council en documentos dirigidos a inversionistas institucionales. Adicionalmente, ha sido revisor ocasional de artículos científicos para varias revistas arbitradas.
Carlos's passion lies in the teaching case method, and he has contributed to the creation of over 25 cases in diverse fields such as finance, strategy, operations, and sustainable development. Many of these cases have gained recognition and have been included in esteemed case databases, including those of Harvard and Michigan Universities.
Carlos holds a Bachelor's degree in Industrial Engineering and a Master's degree in Finance from the Central American University. He further pursued his education by earning an MBA with honors from INCAE Business School and a Ph.D. in Management from the University of St. Gallen in Switzerland. His research primarily focuses on investigating the impact of social, environmental, and corporate governance (ESG) information on financial markets. Additionally, he has conducted studies examining access to entrepreneurial financing in contexts characterized by institutional voids.
Carlos's research contributions have been showcased at prominent conferences such as the doctoral colloquium of the Alliance for Research on Corporate Sustainability at MIT, the specialized conference "From Start-up to Scale-up" organized by the Academy of Management at the University of Tel-Aviv in Israel, the third conference on Entrepreneurial Finance held at Politecnico di Milano in Italy, and the Annual Congress of the European Accounting Association in Valencia, Spain.
In terms of publications, Carlos has co-authored five articles in respected peer-reviewed journals and has contributed two chapters to books published by renowned publishers such as Edward Elgar and World Scientific Publishing. Notably, his research has been cited by the International Integrated Reporting Council in their documents targeted at institutional investors. Furthermore, he has served as an occasional reviewer for various peer-reviewed journals, lending his expertise to the evaluation of scientific articles.