Leveraged Buyout

Leveraged Buyout Simulation

Students become deal masters, assuming the roles of PE firms, lenders, and sell-side advisors to navigate the LBO process

Leveraged Buyout
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Simulation Overview

The Leveraged Buyout simulation is an immersive financial simulation designed by seasoned investment bankers and PE professionals.

It captures the complexities and strategic nuances of executing deals. Students navigate through key stages, from roadshows to the bidding stage and deal structuring.

This multiplayer simulation emphasizes critical thinking. Students' performance is evaluated based on their ability to optimize the capital structure and maximize investor returns.

Leveraged Buyout
Leveraged Buyout gameflow
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Leveraged Buyout key features

Key Features

Duration

4 to 6 hours

Ideal for

MSc, MBA, 3rd BSc students

Pre-requisites

Basic understanding of DCF

Approach

Adaptive learning by doing in a competitive team setting

Grading

Simulator provides assessment data to grade students

Instructions

Explained by videos, case studies, pop-up windows

Real-time feedback and scores

Provided by simulator

Facilitator

Simulator runs by itself (coaching is optional)

Clocks, rules and validation

Managed by the simulator

Location

Online, in-classroom or hybrid

Overview: Leveraged Buyout

- Step into the world of dealmaking - Engage in a fierce and exhilarating battle of LBOs - Master the entire process, from financial modeling to bidding and structuring

46 seconds

Pricing

Per participant, valid for 50+ students

CurrencyDIYPrimedGuidedFacilitated
USDUSD 33USD 46USD 59USD 69
EUREUR 29EUR 39EUR 52EUR 65
GBPGBP 25GBP 35GBP 45GBP 55

Need to apply for internal funding approval?

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Creators of the Leveraged Buyout Simulation

The following industry professionals were involved from the beginning in the inception, creation, development, testing, and optimization of the simulation.

Olaf Rottke

Managed LBO transactions, PE, VC, and family offices, Olaf Rottke.

Bharat Venugopal

Senior M&A Investment Banker, Morgan Stanley, Bharat Venugopal.

Gerhard Wörtche

Sell-Side and Buy-Side experience, Morgan Stanley and HPS Investment Partners, Gerhard Wortche.

Aatmay Upponi

Ex Finance Director, Precomp Tools, Aatmay Upponi.

Georgi Naydenov

Finance LBO deals, Morgan Stanley, SMBC, and Citi, Georgi Naydenov.

Facilitator Resources

Concepts

  • Private Equity and Buyout Firms
  • Valuation of Target Companies
  • Debt Financing in LBOs
  • Due Diligence Process
  • Deal Structuring and Negotiation

Learning Outcomes

  • Integrate assumptions and drivers into financial models
  • Forecast key P&L and Cash Flow Statement items
  • Use management guidance and industry forecasting conventions for your projections
  • Calculate the Equity Value by discounting Free Cash Flow to Equity (FCFE) with a PE firm’s IRR target
  • Derive a PE firm’s bidding Enterprise Value (EV) based on the Equity Value plus Net Debt
  • Normalize historical results to exclude non-recurring items
  • Understand Buy-Side and Sell-Side processes and deal timelines
  • Review typical deal structures and timelines
  • Explain how companies can manipulate P&L items to boost earnings
  • Understand why management and advisors are overly optimistic

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Book a Demo

Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.