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Subscribe Now For More Content - Back on the 10th of June 2019 ___ 🔥Don't forget to Subscribe, Like and Share this video🔥 #investmentBanking #LBO #PrivateEquity In this video we go through an LBO and the steps Investment banking analyst will go through to complete an LBO analysis of a company. “Walk me though an LBO?” or “What is an LBO” are often asked during investment banking interviews from analyst, associates and interns. We will go through each step in detail and explain the concept behind each step, for a detail tutorial of step 4 see our investment banking financial modelling course which will take you which each step and you can also follow along with Excel sheets. www.highfinancegraduate.com

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Learn the concept behind a leveraged buyout (LBO), and why and how an LBO Model works. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" The most common analogy used to explain an LBO is: "Buying a house with a cash down payment and a mortgage." But that is a misleading way to think about it - because an LBO is more like buying a house to rent out to *tenants* i.e. an asset that you earn cash flow from, as opposed to a place to live in yourself. An LBO "works" mathematically because leverage reduces the UPFRONT cost of buying a company (or a house)... and then you use the company's cash flows to pay off debt principal and interest rather than collecting them for yourself. You still have to repay debt at the end when you sell the company... just like repaying a mortgage when you sell a house... BUT it still benefits you to use debt in the beginning because money today is worth more than money tomorrow, and because it's MUCH easier to get a high return on, say, \$150 invested than it is on, say, \$500 invested. In this example with purchasing a house, we see how 100% cash used for a \$500K house produces an IRR of 9% with a 1.5x returns multiple. By contrast, when only 30% cash is used, the IRR increases to 15% and the returns multiple increases to 1.9x. Most private equity firms aim for IRRs of at least 20% (sometimes less than that in a weak market), so normally you can come close to or exceed 20% only by using leverage. Exceptions apply for fast-growing companies and cases where the exit multiple or margins have expanded, but in general most PE firms rely on leverage to achieve IRRs in that range... Well, assuming the company doesn't blow up and go bankrupt due to the high debt load - but that's another lesson for another day... Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/LBO-Explanation.xlsx

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Concept of leverage finance by fast finance. A leveraged buyout (LBO) is a transaction when a company or single asset is purchased with a combination of equity and significant amounts of borrowed money . The term LBO is usually employed when a financial sponsor acquires a company. To know more detail watch this video. For more free finance lessons and 1:1 live mentorship with industry experts, visit us: https://mentor.bluebookacademy.com/live-1-1-mentoring/

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Views: 5881 FinanceKid

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This model aims to determine how much to pay for an acquisition and how much leverage can be used while maximizing the equity IRR.

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Views: 20186 David Barnett

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In this video on What is LBO, here we explain LBO with examples and its features in a table summary format. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐁𝐎? ----------------------------- LBO or leveraged buyout basically acquires a small amount of equity (say 5-10% of the total cost) and uses debt to fund the remaining (90-95%). 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐋𝐁𝐎 ------------------------------------- This section of what is LBO summarizes most of LBO's key features. Parameters Range Returns Between 20%-30% generally Exit Time Horizon 3-5 years Capital Structure A mixture of Debt (High) & Equity (low) Debt Payment Bank debt paid usually in 6-8 yrs. Higher yield debt paid in 10-12 yrs. EXIT Multiples EBITDA, PE, EV/EBITDA Potential Exits Sale, IPO, Recapitalization To know more about 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐁𝐎, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/what-is-lbo/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
Views: 46 WallStreetMojo

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Joshua Rosenbaum and Joshua Pearl, authors of the highly acclaimed and authoritative textbook, Investment Banking, walk through how to answer a common technical question "What is an LBO?" Learn more with these seasoned pros at https://www.efficientlearning.com/ib and jump start a successful career on Wall Street. Don’t guess what you need to ace Superday! Build your confidence for the investment banking interview process with access to additional video lectures and practice questions and take a 14 day free trial of Wiley Investment Banking Prep course at https://www.efficientlearning.com/investment-banking/products/free-trial/.
Views: 54906 Wiley Finance

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Cette vidéo explique comment financer l'acquisition d'une entreprise en utilisant le LBO. Tous les détails sont expliqués ici : http://www.gautier-girard.com/dossiers-entrepreneurs-et-managers/gestion-et-comptabilite/video-reprise-lbo/
Views: 28490 Gautier Girard

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Vielen Dank für das Anschauen des Videos! Unser Wikifolio: https://www.wikifolio.com/de/de/w/wfsmallliq Liked das Video gern und abonniert unseren Kanal :) In diesem Video erklären wir euch verständlich, was ein Leveraged Buyout ist, bzw. den Leverage Effekt. Wie man mit einem Leveraged Buyout die Rendite steigern kann und was der Unterschied zwischen einer eigenkapitalfinanzierten Übernahme und einer fremdkapitalfinanzierten Übernahme ist.
Views: 5108 easyfinance

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http://gordonbizar.com http://gettingrichyourway.com Leveraged Buyout (LBO) has been taught at Bizar Financing for over 30 years. Mr.LBO, Gordon Bizar, explains how he bought his first business with no cash of his own to entrepreneurs. As a business coach, Gordon Bizar, has been a business mentor to over 300,000 entrepreneurs teaching how to use leveraged buyout (LBO) in the purchase of a business. So if you've always wanted to be your own boss and do not know how to purchase a business using leveraged buyout (LBO) learn how to get into that business from Entrepreneur, Gordon Bizar.
Views: 8040 MrLBOgordonBizar

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MBO - existing managers are acquiring the business, they have a much better understanding of it and there is no learning curve involved. LBO is a transaction when a company or single asset (e.g., a real estate property) is purchased with a combination of equity and significant amounts of borrowed money, structured in such a way that the target's cash flows or assets are used as the collateral (or "leverage") to secure and repay the borrowed money.
Views: 8964 financeschoolin

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an informational video-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video. PowToon's animation templates help you create animated presentations and animated explainer videos from scratch. Anyone can produce awesome animations quickly with PowToon, without the cost or hassle other professional animation services require.
Views: 6297 Shayb Sultan

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How can a private equity firm undertake one of those huge LBOs you hear about, while leaving the target company with the borrowed debt that has to be repaid? Leveraged Finance, of course. In this video, master explainer Paddy Hirsch details how these transactions work, what kind of debt is entailed, and who, at the end of the day, is left holding the bag (of money). More videos from Paddy: What is a leveraged loan? http://www.leveragedloan.com/primer/#!whatisaleveragedloan What is a high yield bond? http://www.highyieldbond.com/primer/#!what-is-a-high-yield-bond More on Paddy (nice specs btw, Paddy): http://www.paddyhirsch.com/ Check out LCD's awesome, free Leveraged Loan and High Yield Bond Primers! www.leveragedloan.com www.highyieldbond.com
Views: 20871 LCDcomps

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Nov. 12 (Bloomberg) -- His name is synonymous with 'Corporate Titan.' As co-founder of KKR, Henry Kravis re-wrote the rules of leveraged buyouts; he and his cousin George Roberts now rule over an empire that dwarfs some of the world's mightiest public corporations. "Bloomberg Game Changers" follows Kravis' rise from his early days in 'bootstrap' acquisitions, through his role in the 1988 landmark LBO of RJR-Nabisco, to KKR's IPO on the New York Stock Exchange. (Source: Bloomberg) -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
Views: 320791 Bloomberg

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Views: 29 Russell Sarder

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Max Keiser talks to Stacy Herbert about leveraged buyout recorded on November 7th 2009
Views: 17665 Marc Chabot YT

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Views: 6526 The Audiopedia

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This video is prepared for candidates pursuing CFA LEVEL 1 and covers Study Session - 14 (Equity). There are various ways of investing money in a Company and one way is Buyout. Mohit Sir tries to cover theory topic in a way that brings in fun and enhances retention level. All classes are conducted at Openhouse, Kolkata. Visit:- www.apexacademy1.com For Live/Pendrive classes contact 9038011206.

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Jon Taylor of Stanton Park Advisors (www.stantonparkllc.com) explains how to use a leverage buyout (LBO) model to value a business. The LBO model template can be downloaded at www.stantonparkllc.com in the blog section.
Views: 38201 Jon Taylor

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Views: 633 Thomas Davis

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Leveraged buyouts are discussed in the second video of a five-part series on private equity investment from Cornerstone Advisors. Katie Robinette and Mark Wilkerson of Cornerstone Advisors explore the modern private equity landscape by looking back on the first of four market cycles that shaped the industry. Exploring the time from 1980 to 1991, this episode looks back on the rise of KKR, the takeover of RJR Nabisco and the Barbarians at the Gate time of greed. All Videos In The Series Part 1: What Is Private Equity? An Introduction - https://youtu.be/LvI9GvKflGk Part 2: Rise of Leveraged Buyouts - https://youtu.be/dD9lJPYYuWk Part 3: What Is Venture Capital? - https://youtu.be/wflYQahtcsk Part 4: What Is Distressed Debt Investing? - https://youtu.be/lSJc7NGLRUY Part 5: Should I Invest In Private Equity? - https://youtu.be/7j8WtakdoJY

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In this LBO Model tutorial, we walk through Silver Lake's \$24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview. By http://www.mergersandinquisitions.com/ "Break Into Investment Banking or Private Equity, The Easy Way" Among other topics, we cover typical LBO case study questions to expect, why this particular deal was so unusual, and how to begin gathering data from industry reports, equity research, Dell's filings and investor presentations, and other sources. Then, we delve into how the transaction assumptions are set up, why the calculation for debt and equity is somewhat unusual, and how to factor in Michael Dell's equity rollover and cash contribution and the company's own excess cash usage. Finally, we conclude with a discussion of the Sources & Uses schedule and how that works, plus a description of the different types of debt used in the transaction. WANT MORE FREE FINANCIAL MODELING TUTORIALS? Receive a Free 3-Part Tutorial on **How to Build Your First Merger Model** based on the \$16B United / Goodrich deal. Visit: www.breakingintowallstreet.com/biws MENTIONED RESOURCES http://www.mergersandinquisitions.com/leveraged-buyout-lbo-model-overview-capital-structure/ (Click to access the full case study and FREE downloadable templates)

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In part 2 of our conversation with noted entrepreneur Jack Stack, the discussion turns to the historical buyout of International Harvester by Jack and his partners. They leveraged everything they owned to save their jobs and the jobs of their employees during the height of recession. He talks about the circumstances surrounding that deal and their motivations for making it.
Views: 380 ThesbjLive

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Based on the Wiley Finance Leveraged Buyout book by Paul Pignataro, Mr. Pignataro will step through core Leveraged Buyout (LBO) fundamentals and an LBO analysis to better understand Part I of the book. The book, found below, is recommended to fully understand the material discussed. http://www.amazon.com/Leveraged-Buyouts-Website-Practical-Investment/dp/1118674545/ref=sr_1_1?ie=UTF8&qid=1391540998&sr=8-1&keywords=leveraged+buyouts
Views: 21628 Paul Pignataro

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http://www.lbo-deals.com Presented by The Small Business Buyer. Considering a career change? Here is a mind map that gives you the picture of why you should buy a business and not waste your time with startups.
Views: 1887 rockwell marsh

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In today's class we covered an introduction into leveraged buyouts performing a simple analysis. See more in my book "Leveraged Buyouts" http://www.amazon.com/Leveraged-Buyouts-Website-Practical-Investment/dp/1118674545/ref=sr_1_3?ie=UTF8&qid=1447803048&sr=8-3&keywords=pignataro
Views: 1597 Paul Pignataro

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Host Jim Aisner talks with Harvard Business School Professor Josh Lerner about the financial forces behind the surge of Leveraged Buyouts, or LBO's, in American markets. Recorded December 2006.

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http://gordonbizar.com http://gettingrichyourway.com Leveraged Buyout (LBO) has been taught at Bizar Financing for over 30 years. Entrepreneur, Gordon Bizar, shows other entrepreneurs how to buy a business using his leveraged buyout (LBO) techniques. Watch this video and learn how you can buy a business with LBO, leveraged buyout.
Views: 1249 MrLBOgordonBizar

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What is a "Waterfall Returns" Schedule? CONCEPT: In a leveraged buyout or any deal where an investment firm acquires another company, they'll often own close to 100% of it... By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:04: Example of Management Promotes / Waterfall Returns 3:29: Rationale for Management Promotes and Giving Away Ownership 4:25: Step-by-Step Modeling Process for Waterfall Returns 6:35: Excel Setup 7:12: Level 1 IRR Calculations 10:05: Level 2 IRR Calculations 12:38: Level 3 IRR Calculations 13:55: Level 4 IRR Calculations 14:23: How the Waterfall Distribution Affects IRRs to Everyone 17:35: Recap and Summary What is a "Waterfall Returns" Schedule? CONCEPT: In a leveraged buyout or any deal where an investment firm acquires another company, they'll often own close to 100% of it... But sometimes management will retain a small portion, or another investor group might retain a certain portion. Sometimes it ends there - but sometimes, that smaller group gets ADDITIONAL ownership and a higher stake upon exit if the investment performs well. This is called a "management promote" (if it's the management team that receives this as an incentive). EXAMPLE: A new leveraged buyout takes place, and the PE firm structures the deal to heavily incentivize the management team: For an IRR up to 10%, PE firm gets 95% and management team gets 5% of the proceeds. Then, for the portion of the IRR between 10% and 15%, the PE firm gets 90% and the management team gets 10%. For the portion of IRR between 15% and 20%, the PE firm gets 85% and the management team gets 15%. Then for the IRR above 20%, the PE firm gets 80% and the management team gets 20%. A PE firm might do this to create a "win win" scenario - yes, it loses some of its IRR by giving up a % to the management team... but if all goes well, the team should outperform and help the PE firm achieve a higher overall IRR. How Do You Model This Scenario? 1) Make assumptions for the initial investment and proceeds upon exit, plus the ownership percentages. 2) Make assumptions for how the proceeds split changes at different IRR levels. 3) For each "tier" of IRR, take the initial investment and calculate the amount of net proceeds upon exit that would correspond to that IRR. Example: \$1,000 initial investment, and 10% IRR tier - multiply by (1 + 10%), then multiply that number by (1 + 10%), and so on until the exit year. 4) Determine the split of proceeds within that tier. If the actual proceeds are \$1,500, for example, and \$1,611 would correspond to a 10% IRR, you're done - just split the \$1,500 between the PE firm and management team in a 95% / 5% split. But if it goes beyond that \$1,611, you just split up the \$1,611 according to those numbers and then save the rest for the next tier. 5) Determine the proceeds to distribute in the next tiers. For \$3,000, for example, you'd distribute \$1,611 and save (\$3,000 - \$1,611) for the next tiers. If you're at the 10% level and you get something below \$1,611, you'd set the "proceeds for the next tiers" number to \$0 (use a MAX function for this). 6) Keep doing this for each tier of IRRs until the end. The formulas get trickier as you move up because you need to use MIN and MAX to ensure that you don't get negative or nonsensical values. In Level 2, for example, the "Amount to Distribute and Split" is: =MIN(Net Proceeds That Correspond to 15% IRR in Year 5 minus Net Proceeds That Correspond to 10% IRR in Year 5, MAX(Total Net Proceeds minus Net Proceeds That Correspond to 10% IRR in Year 5, 0)) So you're taking the lesser of the proceeds between 10% and 15% IRRs, or the total remaining amount that can be distributed AFTER the Level 1 distributions. And that same type of logic continues as you move down, until the last tier. RESOURCES: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-03-Simplified-Waterfall-Distribution-Before.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-03-Simplified-Waterfall-Distribution-After.xlsx

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This for the LBO lecture: LBOs Now and then
Views: 3401 Professor Drou

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Here is a brief overview of the steps behind a leveraged buyout analysis. Tomorrow in class we will compliment this with an actual analysis.
Views: 1158 Paul Pignataro

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Note: To download the Excel template that goes with this video, go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-simple-lbo-model/ In this video tutorial, we'll build a leveraged buyout (LBO) model, given some operating and valuation assumptions, in Excel. The goal of this video is to show you that an LBO model is actually a very simple transaction at its core - and quite similar to the mechanics involved when purchasing a home. If after watching this video you want to take your LBO modeling to the next level, see Wall Street Prep's advanced LBO modeling course at http://www.wallstreetprep.com/programs/self_study/advanced_lbo_modeling.php.
Views: 141857 Wall Street Prep

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In this tutorial, we walk through Silver Lake's \$24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview. By http://www.mergersandinquisitions.com/ "Break Into Investment Banking or Private Equity, The Easy Way" In Part 2 of the case study, we go into how you might project revenue and expenses for Dell, how to come up with different scenarios, and how to use "channel checks" to come up with numbers that are different from consensus estimates. We also cover briefly how to link the 3 financial statements and ensure that these assumptions and scenarios flow through everything properly. Please see the link at the top of this description to get all the Excel files and PDFs and other resources. WANT MORE FREE FINANCIAL MODELING TUTORIALS? Receive a Free 3-Part Tutorial on **How to Build Your First Merger Model** based on the \$16B United / Goodrich deal. Visit: www.breakingintowallstreet.com/biws MENTIONED RESOURCES http://www.mergersandinquisitions.com/leveraged-buyout-lbo-model-revenue-expense-scenarios/ (Click to access the full case study and FREE downloadable templates)

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Views: 234 Audioversity

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http://www.lbo-deals.com The Small Business Buyer presents a quick case study on a 1980's leveraged buyout which used techniques which are useful in today's market.
Views: 1172 rockwell marsh

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Wall St. Training Self-Study Instructor, Hamilton Lin, CFA describes the basic financial theory of leveraged buyouts and the rationale behind LBOs. For more information of the video courses previewed here, go to: http://www.wstselfstudy.com/modules.html Over 80 hours of online, interactive Self-Study Videos! ***YOUTUBE VISITORS ONLY*** 10% off any online course, use Discount code: youtube http://www.wstselfstudy.com Wall St. Training Self-Study provides online, video-based, self-study financial modeling training solutions to Wall Street. Our interactive course modules are Excel-based and specialize in advanced and complex financial modeling, valuation modeling, investment banking, mergers & acquisitions and leveraged buyout training topics. Enhance your skills and master the content required by Wall Street investment banks, M&A, research, asset management, credit, and private equity firms.
Views: 27605 wstss

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