Private Equity Investment and Value Creation Training Course

Participants can assess how fund terms and portfolio construction influence investment choices.

• Management fees, carried interest and preferred return calculations
• Waterfall mechanics: European, American and deal-by-deal distribution structures
• Investment period restrictions, recycling provisions and concentration limits
• Portfolio diversification by sector, geography, vintage and risk profile
• Reserve planning for follow-on capital and distressed portfolio support
• Gross and net performance measures: IRR, MOIC and DPI

Participants can formulate a testable investment thesis and prioritise target opportunities.

• Investment thesis built from market structure, target fit and ownership angle
• Thematic sourcing maps linking subsectors, targets and strategic buyers
• Porter's Five Forces assessment of industry profit pools
• Target screening criteria covering size, margins, growth and ownership
• Management succession situations and founder-led transaction opportunities
• Relationship maps for advisers, lenders, executives and co-investors

Participants can prepare a first-pass assessment that determines whether to pursue a target.

• One-page deal screen covering thesis, valuation, risks and returns
• Historical revenue, EBITDA and cash conversion trend analysis
• Initial equity cheque estimated from enterprise value and debt capacity
• Comparable company and precedent transaction valuation range selection
• Red-flag review of customer concentration, claims and regulatory exposure
• Pass, pursue or monitor recommendations supported by explicit decision criteria

Participants can interpret commercial diligence evidence and convert it into investment assumptions.

• Market sizing using top-down, bottom-up and triangulation methods
• Customer interviews testing switching costs, pricing power and service quality
• Cohort analysis separating recurring revenue, churn and expansion
• Competitor benchmarking of market share, product breadth and unit economics
• Commercial diligence questions linked directly to underwriting assumptions
• Demand downside cases based on volume, price and retention drivers

Participants can identify financial diligence adjustments that affect valuation, debt and returns.

• Quality of earnings bridge from reported EBITDA to maintainable EBITDA
• Normalising adjustments for owner costs, one-offs and accounting policies
• Net debt analysis covering cash, leases, working capital and hidden liabilities
• Working capital peg design using seasonal and historical balance sheet data
• Cash conversion review: EBITDA, capital expenditure, tax and working capital
• Tax diligence findings affecting purchase price, structure and future cash flows

Participants can diagnose operational constraints and quantify credible improvement opportunities.

• Value driver tree connecting operational metrics to EBITDA and cash flow
• Procurement savings validated through spend cubes, contracts and specifications
• Pricing opportunities tested through price waterfalls and customer segmentation
• Capacity utilisation, labour productivity and service-level performance metrics
• Technology, cyber and data risks assessed for investment impact
• Management capability review using role clarity and succession evidence

Participants can determine a defensible bid range and identify purchase price risks.

• Enterprise value and equity value bridge construction
• Trading comparables selected by business model, growth and margin profile
• Precedent transactions adjusted for control, synergies and market timing
• Discounted cash flow valuation using explicit forecasts and terminal assumptions
• Purchase price sensitivity to EBITDA adjustments and valuation multiples
• Maximum bid analysis anchored to required equity return thresholds

Participants can structure an integrated LBO model for decision-making and review.

• Integrated LBO model linking income statement, balance sheet and cash flow
• Assumption sheet separating operating, transaction, debt and exit inputs
• Sources and uses schedule including fees, rollover equity and financing
• Debt schedule with mandatory amortisation, cash sweep and interest
• Returns schedule calculating IRR, MOIC and equity value progression
• Model controls using balance checks, circularity switches and error flags

Participants can assess financing alternatives, debt capacity and lender protections.

• Senior term loans, revolving facilities and unitranche financing compared
• Debt capacity estimated from cash flow, leverage multiples and coverage
• Fixed charge coverage and debt service coverage ratio calculations
• Maintenance covenants, incurrence tests and covenant headroom analysis
• Interest rate hedging choices: caps, swaps and fixed-rate debt
• Lender information requirements, credit papers and financing timetables

Participants can test investment returns against operational, financing and exit risks.

• IRR and MOIC calculations reconciled to annual equity cash flows
• Return attribution separating EBITDA growth, deleveraging and multiple movement
• Sensitivity tables for entry multiple, exit multiple and holding period
• Downside cases combining revenue shortfalls, margin pressure and refinancing costs
• Break-even analysis identifying minimum performance needed to protect returns
• Probability-weighted scenarios distinguishing base, upside and downside underwriting

Participants can evaluate transaction structures and prepare a disciplined bid approach.

• Share purchase, asset purchase and merger structure comparisons
• Locked-box and completion accounts mechanisms compared for price certainty
• Earn-outs, deferred consideration and contingent value rights assessed
• Management rollover equity and sweet equity design principles
• Bid letters defining price, conditions, financing and exclusivity
• Auction process planning from first-round indication to signing

Participants can identify contractual protections needed to manage key acquisition risks.

• Representations, warranties and indemnities allocated between buyer and seller
• Warranty and indemnity insurance scope, exclusions and retention levels
• Disclosure letter review focused on known liabilities and exceptions
• Material adverse change clauses and termination rights
• Restrictive covenants covering non-compete, non-solicitation and confidentiality
• Closing conditions, regulatory approvals and long-stop date management

Participants can prepare an investment committee paper that supports an informed decision.

• Investment committee memorandum structure: opportunity, evidence, risks and recommendation
• Executive summary stating the decision requested and key judgement
• Evidence hierarchy distinguishing facts, assumptions, opinions and open issues
• Risk register with likelihood, financial impact, owner and mitigation
• Key diligence findings reconciled to model assumptions and purchase terms
• Recommendation wording addressing conditions precedent and approval limits

Participants can establish governance arrangements and a focused first-100-day plan.

• Board composition, observer rights and reserved matters framework
• First-100-day plan prioritising continuity, control and early value actions
• Management reporting pack linking operational KPIs, cash and covenant metrics
• Delegated authorities for capital expenditure, hiring and commercial commitments
• Day-one communications for employees, customers, suppliers and lenders
• Escalation protocols for liquidity, compliance, cyber and performance issues

Participants can build a value creation plan with accountable initiatives and financial targets.

• Value creation plan translating thesis into initiatives, owners and milestones
• EBITDA bridge quantifying revenue growth, margin actions and cost reduction
• Initiative business cases with investment, benefits, risks and dependencies
• Pricing transformation using segmentation, discount governance and price architecture
• Working capital improvement through receivables, inventory and payables actions
• KPI cadence linking initiative delivery to board reporting

Participants can assess add-on acquisitions and plan integration around the investment thesis.

• Platform and add-on acquisition rationale within buy-and-build strategies
• Target prioritisation using capability gaps, geography and customer access
• Add-on valuation discipline under accelerated transaction timelines
• Synergy cases distinguishing revenue opportunities from executable cost actions
• Integration management office roles, workstreams and decision cadence
• Post-merger integration scorecards tracking synergies, retention and customer outcomes

Participants can monitor portfolio performance and support periodic valuation decisions.

• Monthly portfolio review using operating, liquidity and financing indicators
• Variance analysis separating trading effects, timing issues and forecast changes
• Covenant monitoring with forward-looking headroom and waiver triggers
• IPEV Valuation Guidelines applied to recurring portfolio valuation assessments
• Fair value adjustments based on comparable multiples and company performance
• Watchlist criteria for underperformance, liquidity stress and management intervention

Participants can evaluate exit routes and plan actions that improve sale readiness.

• Trade sale, secondary buyout, IPO and recapitalisation route comparison
• Exit readiness assessment covering reporting, management, contracts and data
• Buyer universe mapping by strategic rationale, capital and execution certainty
• Vendor due diligence preparation to control data quality and messaging
• Exit valuation range using buyer synergies, comparables and market conditions
• Sale process timetable from adviser appointment through closing

Participants can build, review and present a complete private equity investment case with underwriting, financing, value creation and exit recommendations.

• Consolidate commercial, financial and operational diligence into one investment thesis
• Complete sources and uses, debt schedule and equity returns
• Stress-test downside scenarios against covenants, liquidity and target returns
• Draft investment committee recommendation with conditions and principal risks
• Prepare 100-day priorities and quantified value creation initiatives
• Present the deal case and defend assumptions before review panel