At a high level, this course explains the differences between the “buy side” and the “sell side,” between private equity, hedge funds, mutual funds, pension funds - & - investment banks, brokerages, and equity research firms. The class also explains the importance of lenders and leverage, focusing on different classes on leverage such as revolvers, senior bank debt (1st & 2nd lien), leveraged loans, investment grade bonds, high yield bonds, mezzanine financing, convertibles, and securitizations. Students will thus have the opportunity to delve into the capital structure of a company in depth and understand how management decisions vary under different levels of financial stress. The course also will go over prominent modeling techniques used at banks and buy side funds today.
This course identifies and explains major valuation methods used on Wall Street, including Dividend Discount, AVP Analysis, Accretion Dilution, DCF, market comparables, precedent transactions, and LBO. The LBO model specifically is taught in extensive detail using examples of actual Fortune 1000 companies that are good candidates for leveraged buyouts. Each type of analysis is explained thoroughly and template models are provided for practice and application.
The course includes a conceptual exam after each module (65%) and a modeling exam (35%) to be turned in at the end of the eight (8) weeks that incorporates a strategy learned in class with relevant risk measures and asset weighting. A Certificate will be issued to those students scoring above 75% in the course.
Career Topics Covered:
Capital Structure Topics Covered:
Excel Modeling Topics Covered:
Transaction Structures & Closing Deals:
Recruiting Process & Negotiation:
Industry Topics Covered (Energy):