Private Equity: Restructuring Assets and Liabilities
Kevin Kaiser

Objective
Private Equity: Restructuring Assets and Liabilities will explore the scope for restructuring the assets as well as the liabilities of private equity portfolio investments, and examine the methods and processes for realizing these restructurings.

Key benefits

  • Appreciation for the critical importance of asset and liability restructuring in the context of the private equity business model
  • Insight into the importance of financing structure and financial restructuring on company value as well as on rate of return earned on PE acquisitions
  • Awareness of the key levers to be used in restructuring the assets of new PE acquisitions to extract cash in the short-term while building value in the long-term
  • Understanding the potential downside of excess leverage and insights into hurdles and potential solutions for resolving the resulting financial distress through financial restructuring

Who should attend?
Business professionals from PE firms looking to understand how to unlock value potential in their portfolio companies or needing to resolve difficulties due to the financial structures of their companies. Similarly, any advisors to PE firms who support those firms on these issues. Participants will ideally already have some experience with restructurings as well as with valuation techniques used to assess the value impact of such events.

Accreditation
Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 12 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.

Faculty
Kevin Kaiser is Affiliate Professor of Finance, and Director of the International Executive Program at INSEAD, France. He teaches extensively in the executive and MBA programs at INSEAD and has received the MBA award for Best Teacher for Electives seven times.


For information about admission, please see our Practical Information.

Program Content

Day 1
Tough Times: Employing the Disciplines of Private Finance

  • Private Equity Today: the analytic task of evaluating portfolio companies
  • Identifying the key challenges/levers to restructure the assets
  • Look at the fundamental characteristics of the business before looking at the finance
  • Case study: Acquisitions or Asset sales?
  • Restructuring incentives: Will management deliver? How to ensure this?

Understanding and Anticipating Cash Flows (In and Out)

  • Is the company a business – or a bet?
  • Are we financing the company based on predictions or expectations?

 
Restructuring the Business

  • Acquisitions: creating corporate value – or destroying it?
  • How a well-run company evaluates acquisitions
  • M&A Synergies: revenues, costs or control?
  • Asset sales and corporate divestitures: when and why?
  • Finding cash in less-than-obvious places
  • Getting more from the business – working capital management
Group exercise

Day 2
Restructuring the Finance

  • Drivers of capital structure : Too much leverage – and too little
  • Case study: Restructuring the biggest LBO in history?
  • Managing credit and liquidity in a ‘credit crunch’
  • Role of mezzanine finance: where does it fit into a company’s financing structure and restructuring solutions?
  • Explanation of mezzanine and equity-linked financing instruments
  • Setting targets and linking payout to performance
  • Discussion of appropriate linkage: turnover, cash flow or profit?

Recapitalizations and Exit Strategies

  • Ownership transition and exit: financial choices
  • Recap to maximize return
  • Conclusion: when to buy, when to restructure and when it’s time to sell
  • Case study: Assessing debt capacity and the impact of exit strategy
  • Why restructure liabilities: recap to maximize return or to avoid collapse?
  • How to identify distress early
  • Identifying sources of cash from financing alternatives
  • Hurdles to negotiating with creditors and restructuring existing liabilities
  • Debt-for-equity swaps and exchange offers

Group exercises

  • LBO in distress
  • Recapitalizing the business
 


Dates & Fees
Sep 30 - Oct 1, 2010
€ 2,400
 
(AIF programs are not subject to VAT)