Corporate Finance School

5 days 4-8 Dec 2016, Manama Bahrain £3,295.00 Download brochure Add to basket

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The course is based on case studies and model building and covers all the practical aspects of the major corporate finance activities including:

Day 1: Valuation by WACC and by multiples

Day 2: M&A Structuring, synergies, due diligence and pro forma analysis

Day 3: Highly Leveraged Transactions: LBOs

Day 4: IPO Marketing and Underwriting

Day 5: Restructuring in Financial Distress

The course is built around actual case studies illustrating current practices including:

  • BA/Iberia merger;
  • Marathon corporate restructuring; Tommy Hilfiger LBO;
  • Phelps Dodge M&A valuation; Royal Bank of Scotland; Allianz;
  • Real estate company and Islamic Finance case;
  • and many others.

The case study work will include team based negotiation and excel modelling (using spreadsheets supplied).

The course is delivered by Paul Richards, who has substantial banking expertise and experience of delivering courses in finance to banks and financial institutions all over the world. He has also taught MBAs and Masters in Finance students in leading UK business schools.

Course objectives

The course delivers in-depth exposure to all the main corporate finance disciplines including valuation, M&A and acquisition financing, LBOs and debt restructuring as well as the associated model-building.

Teaching techniques

This course is ideally suited for:

  • The course is delivered by means of a combination of short lecture session followed by practical case studies some of which involve using excel models.
  • The sessions are highly interactive and questions and attendee participation is encouraged.
  • Case study work also involves negotiation which is undertaken in small groups.
  • The concepts taught, the exercises and the case studies are designed to be of practical benefit to attendees and are immediately usable in the workplace

About The BIBF
The BIBF plays a vital role in the training and development of human capital in the Middle East and North Africa. Their commitment to excellence has strengthened their position as the leading educational provider across all major business disciplines.

They serve as a partner to numerous world-class institutions; delivering thought leadership, assessment and training in the areas of Banking, Accounting & Finance, Assessment & Development, English & Business Communication, Human Resources, Information Technology, Insurance, Interpersonal Skills, Islamic Finance, Leadership & Management, Marketing, Sales & PR, and Project Management.


We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.




Bahrain Hotel

This programme takes place on a non-residential basis at a central Manama hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses


We can bring this course to your company's office.

If you simply want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. Our tailored learning solutions are designed specifically for your organisation’s needs.

We’ll be here to support you every step of the way. From the initial consultancy through to evaluating the success of the full learning experience. We'll ensure you get the maximum return on your training investment.

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Day 1


Session 1: Investment appraisal and model building

  • Introduction to modelling – the key principles
  • Payback; Discounted payback
  • Net present value, internal rate of return
  • Key assumptions, modelling principles
  • Model drivers: tax; working capital; capex
  • Capital Structure Theory: Modigliani and Miller
  • Enterprise value concept
  • Impact of tax and financial distress costs
  • Cost of debt, cost of equity
  • WACC (weighted average cost of capital)
  • How CAPM can be used to identify the cost of equity
  • The impact of gearing on the cost of equity
  • Model inputs and sensitivity
  • Calculating beta and the risk premium

Case study: Calculating the cost of equity  using beta and adjusting the beta for changes in gearing

Session 2: WACC (Weighted average cost of capital)

  • Estimating enterprise value using WACC
  • Forecasting free cash flows and the growth rate
  • Terminal value calculations
  • Obtaining an equity value using WACC
  • Review of WACC as a valuation tool
  • Alternative terminal value calculations
  • Re-iteration where necessary
  • Return on invested capital

Case Study: Valuation involving preparation of cash flows, calculation of WACC, estimating enterprise value and hence equity value

Session 3: Valuation using multiples

  • Background to the multiple-based approach
  • Requirements to achieve reliable results
  • Alternative valuation ratios
  • Value drivers and valuation

Case study: Phelps Dodge multiple based M&A valuation

Session 4: M&A rationale, synergies and due diligence

  • Strategic decision making: do companies need to grow?
  • Acquisition versus organic growth
  • Types of transaction
  • Types of synergies
  • Identifying the acquisition benefits
  • Quantifying the benefits
  • Types of synergy
  • Legal risks in acquisitions and risk mitigation
  • Credit risk in the event of a problem
  • Impact of the nature of the transaction (friendly/hostile) on due diligence
  • Due diligence: financial, legal and commercial
  • Deal breakers, adjusting the price
  • Managing acquisition risk

Case studies: BA/Iberia

Day 2


Session 1: Corporate restructuring events and implications

  • Acquisitions
  • JVs
  • Spin-offs
  • Split-offs
  • Carve-outs
  • Targeted stock
  • Contingent value rights
  • Disposals – the controlled auction
  • Bilateral negotiation
  • Data room
  • Vendor due diligence
  • Sale and purchase agreement

Case study: Carphone Warehouse demerger

Session 2: Pro forma acquisition analysis

  • Pro forma financials
  • Accretion and dilution
  • Breakeven PER of cash/debt
  • Impact of capital structure
  • Considering all debt and all equity financing
  • Including synergies in the analysis

Case study: M&A presentation by Rona

Session 3: Modelling the acquisition

  • Building the model
  • Income statements
  • Balance sheets and cash flow statements
  • Capital structure assumptions
  • Financing options
  • Examining the impact on credit ratios
  • Dividend policy

Case study: model building to examine the impact of the acquisition, its synergies and its financing on the financial statements of the buyer

Session 4: Financing the acquisition

  • Capital structure flexibility
  • Bridge financing
  • Issuing equity
  • Vendor placing
  • Deferred consideration: Earn-outs
  • CVRs

Case study: Pharma company contingent payments

Day 3


Session 1: Leveraged buy-out types

  • Deal types: LBO, MBO, MBI, BIMBO, SBO, LBU, P2P, etc.
  • Traditional financing structures
  • Objectives of senior lenders
  • Objectives of mezzanine lenders
  • Objectives of equity providers
  • Historical rates of returns
  • Carried interest

Case study: Restructuring Toys R Us, Legrand

Session 2: Structuring the debt

  • Example capital structures
  • Establishing the amount of debt that can be used
  • Assessing the type of debt that can be used
  • Disadvantages of the high level of gearing
  • Key credit ratios

Case study: Materis, international secondary and tertiary buyout

Session 3: Building the LBO model

  • Secondary buy-out case
  • Senior and junior mezzanine
  • Key ratios determining the financing structure
  • Preparing projections for the appraisal of an LBO and mezzanine candidate
  • Model the equity returns
  • Model the mezzanine warrant participation
  • Setting the covenant structure
  • Internal approvals
  • Facility letters

Case study: Building a model of the cash flows and capital structure to test syndication feasibility

Session 4: Satisfying the lenders

  • Acquisition vehicle structure
  • Contractual subordination
  • Structural subordination
  • Achieving debt pushdown
  • Achieving tax relief
  • Opco/propco/holdco

Case study: Holdco PIK, Cognis Gmbh

Day 4


Session 1: Preparation

  • Why float?
  • Exit strategies for existing shareholders
  • Strategic considerations: float or sell?
  • The objective of the due diligence exercise
  • Essential corporate restructuring steps pre-IPO
  • Senior versus junior market
  • Lock-up agreements
  • American depositary receipts (ADRs and Global DRs)
  • Timetable

Case study: US IPO failure

Session 2 – Marketing the IPO

  • Book-building/placing as an issue method
  • Offers for sale as an issue method
  • The role of the analyst
  • Roadshows and company visits
  • Preparing the management

Case study: Roadshow presentation for major IPO

Session 3: IPO Underwriting

  • Hard and soft underwriting
  • The financial risk in underwriting
    - Underwriting as an option
    - Competition issues in fees charged
    - Underwriting in public offers

Case study: The overallotment option/Greenshoe

Session 4: Rights issues post IPO

  • Pre-emption rights
  • Theoretical ex-rights price (TERP)
  • Deeply discounted issues
  • Block trades, accelerated book building
  • Other abusive practices covered in the Global Settlement

Case study: Allianz rights issue

Day 5


Session 1: The road to financial distress

  • Symptoms of distress
  • Causes of distress
  • The cycle of distress
  • The role of covenants as early warning devices
  • The rating agencies and missed problems
  • Distressed security prices
  • Systemic distress or ad hoc distress
  • Speed of recognition versus management denial

Case Study: Americredit and the US car industry

Session 2: Business plan failures

  • Critical assumption failure causing distress
  • Technological failure
  • Revenue assumption failure
  • Project financing failures

Case Study: Iridium, New Star

Session 3: Pre-distress restructuring actions

  • Management led business restructuring ahead of distress
  • Cutting costs to meet a lower level of business activity
  • Financial restructuring ahead of projected or possible distress
  • The distressed debt investor’s approach to selecting distress candidates

Case study: Restructuring Walmart with distressed debt investors

Session 4: Restructuring options

  • What business levels can be projected in the future
  • Can the projections support the current debt burden?
  • Does the company need more cash to execute the new plan?
  • Legal options available
  • Approaches to insolvency (INSOL Principles)
  • Workouts
  • Prepackaged deals
  • Court led/judicial restructurings
  • Comparing international approaches

Case Study: Restructuring Drax

End of course

Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product