Presentation of the course:

1. Introduction
2. Objectives
3. Work plan and methodology

Introduction to Private Equity (I)

1. Definition of Private Equity (‘PE’)
2. PE life cycle (fundraising, investment, portfolio management and exit)
3. Outlook – Global and Europe
4. Importance of Private Equity in the economy
5. Type of transactions where PE invest

Introduction to Private Equity (II)

1. Structure (e.g. LPs, GPs, Investment Committee)
2. Management
3. Main players (international and local)
4. How PE looks at financials statements

Introduction to financial statements analysis

1. Overview of the financial statements
2. Profit and Loss
3. Balance sheet
4. Cash flow
5. Financial definitions
6. Key value drivers
7. Case study

Transaction process I – Pre deal

1. Investment thesis
2. Initial information
3. Analysis of synergies
4. Preliminary valuation
5. Exit options
6. Indicative offer/MoU

Transaction process II – In deal

1. Due diligence: key value drivers, value levers, quantification of risk and opportunities
2. Other key findings from other dd streams (e.g. tax and legal)
3. Value/price negotiations (EV to EqV bridge)
4. Business Plan

Underlying earning –– Q&E, I

1. Definition
2. Types of adjustments (transaction boundary, one--off, run--rate pro-forma, accounting changes, estimates, manipulation)

Underlying earning –– Q&E, II

1. Normalized EBITDA

Working capital I

1. Why is working capital analysis important
2. Cash conversion cycle?
3. Underlying working capital

Working capital II

1. Working capital pattern/seasonality
2. Key considerations
3. Normalization

Net Debt I

1. Why is net debt analysis important?
2. Definition of cash
3. Definition of debt 

Net Debt II

1. Net debt adjustments (financial debt-like items)

Cash flow I

1. Direct vs indirect method
2. EBITDA conversion rate
3. Operating, debt service and Free cash flow
4. Case study

Cash flow II

1. Extraordinary cash inflows/outflows
2. Sources and Uses
3. Case study

Projections

1. Key drivers
2. Challenge to main assumptions
3. Comparison to historical
4. Sensitivity analysis (what if?)
5. Adjusted vs sensitized
6. Management case vs Bank case

Capex

1. Introduction – Balance sheet analysis
2. Capital Expenditure
3. Industry differences
4. Which business would you want?
5. Related factors impacting recorded capex
6. Capex or Opex(maintenance)
7. Recurrence/Underlying capex
8. Own work capitalized

Transaction process – Closing I

1. SPA drafting and execution
2. Conditions precedent
3. Purchase price adjustment mechanisms

Transaction process – Closing II

1. Change of control
2. Communication plan
3. Case study

Post deal integration

1. Integration PMO
2. Communication plan
3. 100 days plan
4. Synergies execution
5. Stabilization phase

Portfolio management and Exit I 

1. Controlling and reporting
2. Build up process (add on)
3. Recap
4. Refinancing

Portfolio management and Exit II

1. Improvement initiatives
2. Exit process
3. Valuation
4. Management Team
5. Due Diligence process - VDD