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Leveraged Buyouts (Online)

A roadmap for evaluating, structuring, and executing LBOs

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Course Date

STARTS ON

March 9, 2023

Course Duration

DURATION

6 weeks
4–6 hours per week

Course Fee

PROGRAM FEE

US$2,600 or get US$260 off with a referral

Course Information Flexible payment available
Course Information Special group enrollment pricing

Welcome

To claim your US$260 program fee coupon for Leveraged Buyouts (Online), please complete the information form.

Ensure the Success of Your LBO

Designed for investment and finance professionals, this program can help you build a comprehensive understanding of leveraged buyouts and the process of completing them. As a participant, you’ll learn how to evaluate a potential LBO opportunity and how to effectively execute the deal.

Key Takeaways

By the end of the program, you will be able to:

  • Recognize why organizations perform LBOs
  • Explain how different aspects of the LBO process work for stakeholders
  • Differentiate the financial instruments used to fund an LBO
  • Determine how to access the leveraged credit and private equity markets that underwrite LBOs
  • Evaluate the risk and potential success of LBO deals
  • Determine how to successfully execute LBO deals

Who Should Attend?

Investment professionals looking to understand how to evaluate LBO deals and execute them effectively

Mid-level to senior finance professionals looking to build a comprehensive understanding of the leveraged buyout process and to the markets (leveraged credit and private equity) that underwrite them

Program Modules

This program provides a structured understanding of leveraged buyouts, from how to evaluate potential LBO candidates to how to successfully execute a buyout. Along the way, you’ll explore real-world case studies that highlight potential pitfalls and the elements required for success.

Module 1:

Introduction to Leveraged Buyouts

Explore the features, benefits, and critical elements necessary for a profitable LBO and the laws and regulations that govern them.

  • Identify the components of an LBO
  • Recognize the possible risks and rewards of completing a leveraged buyout
  • Identify the key factors necessary for a leveraged buyout to be successful

Module 2:

Valuation and Pricing from the Private Equity Perspective

Understand how to evaluate an LBO deal and determine the right price for the transaction.

  • Identify the key characteristics of an ideal LBO candidate from a private equity perspective
  • Evaluate the soundness of a leveraged buyout using business valuation, cashflow forecasts, human-capital valuation, and the analysis of future returns and ROI
  • Identify strategies for avoiding bias in the valuation of an LBO deal

    Module 3:

    Financing Leveraged Buyouts from the Creditor Perspective

    Understand different types of debt options available and learn how to structure leveraged transactions, including identifying the appropriate amount of debt.

    • Differentiate the types of credit instruments used to finance LBOs
    • Recognize the risks and rewards of different debt options and when in a credit cycle each is likely to be available to an organization
    • Determine how to structure leveraged transactions, including identifying the appropriate amount of debt
    • Identify how the recovery values for different stakeholders may differ when an organization defaults on different types of credit instruments

    Module 4:

    Financing a Leveraged Buyout: The Credit Cycle

    Explore the history of leveraged credit markets and understand the availability of financing for LBOs at various points of the credit cycle (boom, bust, indifferent).

    • Analyze how the metrics used by credit investors affect availability cost and structure for the credit component of LBO financing
    • Determine the current point in the credit cycle and whether the markets are open to LBO financing

    Module 5:

    Cash Flow Forecasting for LBO Creditors

    Examine the methods credit investors use to analyze an investment opportunity for the various financing instruments in an LBO as well as the LBO’s credit quality.

    • Calculate free cash flow available to service the principal on outstanding debt
    • Develop assumptions for a base and downside forecast
    • Determine whether an LBO generates free cash flow using a baseline case and a downside forecast
    • Analyze how completed forecasts affect key credit analysis ratios

    Module 6:

    A Case Study on Successful LBOs: HCA Healthcare Inc.

    Delve into the investment thesis, financing, and exit of one of the largest LBOs on record, with a focus on how investors on both sides of the balance sheet fared.

    • Analyze the key elements of an investment thesis that guides a successful LBO
    • Recommend financing strategies for LBO candidates that are more likely to lead to a successful outcome
    • Identify best practices for exiting an LBO

    Module 1:

    Introduction to Leveraged Buyouts

    Explore the features, benefits, and critical elements necessary for a profitable LBO and the laws and regulations that govern them.

    • Identify the components of an LBO
    • Recognize the possible risks and rewards of completing a leveraged buyout
    • Identify the key factors necessary for a leveraged buyout to be successful

    Module 4:

    Financing a Leveraged Buyout: The Credit Cycle

    Explore the history of leveraged credit markets and understand the availability of financing for LBOs at various points of the credit cycle (boom, bust, indifferent).

    • Analyze how the metrics used by credit investors affect availability cost and structure for the credit component of LBO financing
    • Determine the current point in the credit cycle and whether the markets are open to LBO financing

    Module 2:

    Valuation and Pricing from the Private Equity Perspective

    Understand how to evaluate an LBO deal and determine the right price for the transaction.

    • Identify the key characteristics of an ideal LBO candidate from a private equity perspective
    • Evaluate the soundness of a leveraged buyout using business valuation, cashflow forecasts, human-capital valuation, and the analysis of future returns and ROI
    • Identify strategies for avoiding bias in the valuation of an LBO deal

      Module 5:

      Cash Flow Forecasting for LBO Creditors

      Examine the methods credit investors use to analyze an investment opportunity for the various financing instruments in an LBO as well as the LBO’s credit quality.

      • Calculate free cash flow available to service the principal on outstanding debt
      • Develop assumptions for a base and downside forecast
      • Determine whether an LBO generates free cash flow using a baseline case and a downside forecast
      • Analyze how completed forecasts affect key credit analysis ratios

      Module 3:

      Financing Leveraged Buyouts from the Creditor Perspective

      Understand different types of debt options available and learn how to structure leveraged transactions, including identifying the appropriate amount of debt.

      • Differentiate the types of credit instruments used to finance LBOs
      • Recognize the risks and rewards of different debt options and when in a credit cycle each is likely to be available to an organization
      • Determine how to structure leveraged transactions, including identifying the appropriate amount of debt
      • Identify how the recovery values for different stakeholders may differ when an organization defaults on different types of credit instruments

      Module 6:

      A Case Study on Successful LBOs: HCA Healthcare Inc.

      Delve into the investment thesis, financing, and exit of one of the largest LBOs on record, with a focus on how investors on both sides of the balance sheet fared.

      • Analyze the key elements of an investment thesis that guides a successful LBO
      • Recommend financing strategies for LBO candidates that are more likely to lead to a successful outcome
      • Identify best practices for exiting an LBO
      Download Brochure

      Program Experience

      Two Live Sessions with Faculty

      Real-World Case Studies

      Bite-Sized Learning

      Decorative image relating to dedicated program support team

      Dedicated Program Support Team

      Mobile Learning App

      Peer Learning Feedback

      Live Office Hours with Program Leaders

      Capstone Project Based on Real-World Case Study

      Real-World Case Studies

      Through real-world case studies and examples from multiple organizations and industries, you'll explore the realities of leveraged buyouts and the factors that can lead to failure or drive success. Examples include:

      Dynacast

      Imagine that you are a principal in the private equity group at Partners Group (PG), a global private markets investment organization, in 2014. In the Dynacast: Solid, Middle-Market LBO case study, your group is investing in Dynacast, a small global manufacturer of high-quality metal components. Through this case, you’ll gain real-world experience in evaluating the soundness of an LBO deal and compiling a summary report for your team and managing director to present to the bankers for the transaction.

      HCA

      As one of the largest leveraged buyouts on record, the HCA LBO was a home run for all constituents: private equity sponsors, creditors, and management. This case serves as the foundation for the final module of the program and takes a deep dive into its investment thesis, financing, and exit, and it provides an example of what a good LBO for both private equity sponsors and creditors looks like.

      Program Faculty

      Donna Hitscherich

      Senior lecturer in Discipline in Business; finance director in the Private Equity Program; and Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics

      Donna M. Hitscherich currently serves as a senior lecturer in Discipline in Business, finance director in the Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School. Hitscherich’s programs include Corporate Finance and the elective programs Business Law, Mergers and Acquisitions, and Advanced Corporate Finance. More info

      Profile picture of program faculty, Ellen Carr

      Ellen Carr

      Adjunct Associate Professor, Finance Adjunct Faculty, Heilbrunn Center for Graham and Dodd Investing

      Ellen Carr has over two decades of experience as a high yield bond portfolio manager, most recently at Weaver C. Barksdale (WCB), a majority-women-owned, institutional fixed income investment management firm based in Nashville, TN. She specializes in the construction and management of high yield and core plus bond portfolios. Prior to joining WCB, she served as senior vice president and a high yield portfolio manager for institutional separate accounts and mutual funds for The Capital Group Companies/American Funds in Los Angeles, CA. More info

      Donna Hitscherich

      Senior lecturer in Discipline in Business; finance director in the Private Equity Program; and Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics

      Donna M. Hitscherich currently serves as a senior lecturer in Discipline in Business, finance director in the Private Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School. Hitscherich’s programs include Corporate Finance and the elective programs Business Law, Mergers and Acquisitions, and Advanced Corporate Finance. In 2002, she was nominated for the Dean’s Award for Innovation in the MBA Curriculum for her presentation of the Advanced Corporate Finance program. She also received the Executive MBA Commitment to Excellence Award from the Berkeley-Columbia EMBA program graduating classes in 2010, 2011, 2012, and 2013 and the Commitment to Excellence Award for EMBA-Americas graduating classes in 2014 and 2017. She was also a BRIDGE Fellow for academic year 2014–2015 — Building Relationships with Industry and Defining Graduate Education in Business (BRIDGE) — at Columbia Business School based on an endowed gift which the school allocates each year for faculty members who are working on new initiatives aimed at building relationships with industry practitioners. Hitscherich has also served as a lecturer in law and accounting at Columbia Law School. From 1988–1990, she was an assistant professor of law at St. John’s University School of Law, where she taught Federal Securities Regulation and Legal Ethics. Prior to her present position as a senior lecturer at Columbia, Hitscherich had a career in investment banking, holding positions at CS First Boston, J.P. Morgan & Co. Inc., and Banc of America Securities. At J.P. Morgan, she helped found the takeover defense team and served as a senior member of the advisory review committee, which was responsible for all of the M&A fairness opinions issued by the company. As a managing director in the mergers and acquisitions group of Banc of America Securities, she was secretary of the firm’s fairness-opinion review committee and a major contributor to the firm’s training programs for managing directors and associates. Prior to her investment banking career, Hitscherich was a corporate lawyer at Skadden, Arps, Slate, Meagher & Flom. In addition to an MBA from Columbia Business School, Hitscherich received a BS and JD from St. John’s University and is a NYS certified paramedic.
      Profile picture of program faculty, Ellen Carr

      Ellen Carr

      Adjunct Associate Professor, Finance Adjunct Faculty, Heilbrunn Center for Graham and Dodd Investing

      Ellen Carr has over two decades of experience as a high yield bond portfolio manager, most recently at Weaver C. Barksdale (WCB), a majority-women-owned, institutional fixed income investment management firm based in Nashville, TN. She specializes in the construction and management of high yield and core plus bond portfolios. Prior to joining WCB, she served as senior vice president and a high yield portfolio manager for institutional separate accounts and mutual funds for The Capital Group Companies/American Funds in Los Angeles, CA. Along with her high yield responsibilities, Carr also managed investment-grade corporate and long-duration credit portfolios. Carr began her career as an investment analyst for the Fixed Income Group at Capital in 1999. Carr has been an adjunct professor of finance at Columbia Business School since 2012, where she teaches programs on the credit markets and cash flow modeling. She is also a writer and an occasional contributor to the Financial Times and Institutional Investor. She has co-authored a book on women in investment management to be published in spring 2021 by Columbia University Press. Carr is a trustee of the National Public Radio (NPR) Foundation, as well as a board member of her local NPR affiliate and the Community Foundation of Western North Carolina. She serves as treasurer of the Wilma Dykeman Legacy and vice-chair of the Department of Management and Accountancy Advisory Board at the University of North Carolina Asheville. She is a member of the Kellogg Financial Network Advisory Board and also manages a family foundation (carrfamilyfoundation.org), which awards college scholarships in rural communities. Carr has an MBA from the Kellogg Graduate School of Management at Northwestern University and received her B.A. from Harvard in 1994, where she graduated magna cum laude and Phi Beta Kappa. Carr splits her time among Asheville, North Carolina, rural Tennessee, and New York. She has one son, two cats, and a pandemic puppy.

      Certificate

      Example image of certificate that will be awarded after successful completion of this program

      Certificate

      Upon completion of the program, participants will receive a certificate of participation from Columbia Business School Executive Education and two days toward a Certificate in Business Excellence.

      Download Brochure

      Your verified digital certificate will be issued in your legal name and emailed to you, at no additional cost, upon completion of the program as per the stipulated requirements. All certificate images are for illustrative purposes only and may be subject to change at the discretion of Columbia Business School Executive Education.

      Why Columbia Business School?

      Educating the Business Leaders of Today and Tomorrow

      Consistently ranked as one of the top business schools in the world for finance, Columbia Business School has worked exclusively with Emeritus to develop and deliver this six-week Leveraged Buyouts (Online) program. This program leverages Columbia's thought leadership, developed over years of research, teaching, and practice. By partnering with Emeritus, Columbia Business School is able to broaden access beyond our on-campus offerings in a collaborative and engaging format that stays true to the quality of Columbia Business School Executive Education and Columbia as a whole.

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      FAQs

      • How do I know if this program is right for me?

        After reviewing the information on the program landing page, we recommend you submit the short form above to gain access to the program brochure, which includes more in-depth information. If you still have questions on whether this program is a good fit for you, please email learner.success@emeritus.org, and a dedicated program advisor will follow-up with you very shortly.


        Are there any prerequisites for this program?

        Some programs do have prerequisites, particularly the more technical ones. This information will be noted on the program landing page, as well as in the program brochure. If you are uncertain about program prerequisites and your capabilities, please email us at learner.success@emeritus.org for assistance.


        Note that, unless otherwise stated on the program web page, all programs are taught in English and proficiency in English is required.


        What is the typical class profile?

        More than 50 percent of our participants are from outside the United States. Class profiles vary from one cohort to the next, but, generally, our online certificates draw a highly diverse audience in terms of professional experience, industry, and geography — leading to a very rich peer learning and networking experience.


        What other dates will this program be offered in the future?

        Check back to this program web page or email us at learner.success@emeritus.org to inquire if future program dates or the timeline for future offerings have been confirmed yet.

      • How much time is required each week?

        Each program includes an estimated learner effort per week. This is referenced at the top of the program landing page under the Duration section, as well as in the program brochure, which you can obtain by submitting the short form at the top of this web page.



        How will my time be spent?

        We have designed this program to fit into your current working life as efficiently as possible. Time will be spent among a variety of activities including:



        • Engaging with recorded video lectures from faculty
        • Attending webinars and office hours, as per the specific program schedule
        • Reading or engaging with examples of core topics
        • Completing knowledge checks/quizzes and required activities
        • Engaging in moderated discussion groups with your peers
        • Completing your final project, if required

        The program is designed to be highly interactive while also allowing time for self-reflection and to demonstrate an understanding of the core topics through various active learning exercises. Please contact us at learner.success@emeritus.org if you need further clarification on program activities.



        What is it like to learn online with the learning collaborator, Emeritus?

        More than 250,000 professionals globally, across 80 countries, have chosen to advance their skills with Emeritus and its educational learning partners. In fact, 90 percent of the respondents of a recent survey across all our programs said that their learning outcomes were met or exceeded.

        A dedicated program support team is available 24/5 (Monday to Friday) to answer questions about the learning platform, technical issues, or anything else that may affect your learning experience.


        How do I interact with other program participants?

        Peer learning adds substantially to the overall learning experience and is an important part of the program. You can connect and communicate with other participants through our learning platform.

      • What are the requirements to earn the certificate?

        Each program includes an estimated learner effort per week, so you can gauge what will be required before you enroll. This is referenced at the top of the program landing page under the Duration section, as well as in the program brochure, which you can obtain by submitting the short form at the top of this web page. All programs are designed to fit into your working life.

        This program is scored as a pass or no-pass ; participants must complete the required activities to pass and obtain the certificate of completion. Some programs include a final project submission or other assignments to obtain passing status. This information will be noted in the program brochure. Please contact us at learner.success@emeritus.org if you need further clarification on any specific program requirements.


        What type of certificate will I receive?

        Upon successful completion of the program, you will receive a smart digital certificate. The smart digital certificate can be shared with friends, family, schools, or potential employers. You can use it on your cover letter, resume, and/or display it on your LinkedIn profile. The digital certificate will be sent approximately two weeks after the program, once grading is complete.


        Can I get the hard copy of the certificate?

        No, only verified digital certificates will be issued upon successful completion. This allows you to share your credentials on social platforms such as LinkedIn, Facebook, and Twitter.


        Do I receive alumni status after completing this program?

        No, there is no alumni status granted for this program. In some cases, there are credits that count toward a higher level of certification. This information will be clearly noted in the program brochure.


        How long will I have access to the learning materials?

        You will have access to the online learning platform and all the videos and program materials for 12 months following the program start date. Access to the learning platform is restricted to registered participants per the terms of agreement.

      • What equipment or technical requirements are there for this program?

        Participants will need the latest version of their preferred browser to access the learning platform. In addition, Microsoft Office and a PDF viewer are required to access documents, spreadsheets, presentations, PDF files, and transcripts.


        Do I need to be online to access the program content?

        Yes, the learning platform is accessed via the internet, and video content is not available for download. However, you can download files of video transcripts, assignment templates, readings, etc. For maximum flexibility, you can access program content from a desktop, laptop, tablet, or mobile device.

        Video lectures must be streamed via the internet, and any livestream webinars and office hours will require an internet connection. However, these sessions are always recorded, so you may view them later.

      • Can I still register if the registration deadline has passed?

        Yes, you can register up until seven days past the published start date of the program without missing any of the core program material or learnings.


        What is the program fee, and what forms of payment do you accept?

        The program fee is noted at the top of this program web page and usually referenced in the program brochure as well.

        • Flexible payment options are available (see details below as well as at the top of this program web page next to FEE).
        • Tuition assistance is available for participants who qualify. Please email learner.success@emeritus.org.

        What if I don’t have a credit card? Is there another method of payment accepted?

        Yes, you can do the bank remittance in the program currency via wire transfer or debit card. Please contact your program advisor, or email us at learner.success@emeritus.org for details.


        I was not able to use the discount code provided. Can you help?

        Yes! Please email us at learner.success@emeritus.org with the details of the program you are interested in, and we will assist you.


        How can I obtain an invoice for payment?

        Please email learner.success@emeritus.org with your invoicing requirements and the specific program you’re interested in enroling in.


        Is there an option to make flexible payments for this program?

        Yes, the flexible payment option allows a participant to pay the program fee in installments. This option is made available on the payment page and should be selected before submitting the payment.


        How can I obtain a W9 form?

        Please email us at learner.success@emeritus.org for assistance.

      • What is the policy on refunds and withdrawals?

        You may request a full refund within seven days of your payment or 14 days after the published start date of the program, whichever comes later. If your enrollment had previously been deferred, you will not be entitled to a refund. Partial (or pro-rated) refunds are not offered. All withdrawal and refund requests should be sent to admissions@emeritus.org.



        What is the policy on deferrals?

        After the published start date of the program, you have until the midpoint of the program to request to defer to a future cohort of the same program. A deferral request must be submitted along with a specified reason and explanation. Cohort changes may be made only once per enrollment and are subject to availability of other cohorts scheduled at our discretion. This will not be applicable for deferrals within the refund period, and the limit of one deferral per enrollment remains. All deferral requests should be sent to admissions@emeritus.org.

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      Flexible payment options available. Learn more.