Leverage Academy Marketing Presentation Shortened


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Leverage Academy, LLC Course Description

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  • Exploration and Development costs linked together to make F&D costsCapitalized F&D costs represent asset value of reserves on the balance sheet.
  • Exploration and Development costs linked together to make F&D costsCapitalized F&D costs represent asset value of reserves on the balance sheet.
  • Leverage Academy Marketing Presentation Shortened

    1. 1. Introduction<br />www.leverageacademy.com<br />www.leverageacademy.com/blog<br />
    2. 2. Introduction<br />Global commerce cannot exist without the flow of capital. Businesses are financed with a mix of equity and debt, where each tranche or security has a different risk/return profile. At Leverage Academy, we encourage students to explore and learn how to analyze a firm’s capital structure. Our team instructs students and young professionals on how to structure deals, understand the flow of funds in the capital markets, and prepare for a long term career in Finance. <br />Leverage Academy, LLC has taught students from Boston College & Boston University, and is starting courses at Babson College, Northeastern University, and Suffolk University from 2009-2010. Plans to expand into McGill (Montreal) and Philadelphia for 2010 are currently underway.<br />GOAL OF EDUCATING STUDENTS & YOUNG PROFESSIONALS IN CAPITAL STRUCTURE<br />
    3. 3. Introduction<br />Leverage Academy, LLC is a partnership between industry professionals and instructors in North America (United States & Canada) and the EMEA region (Europe, Middle East, Africa). We have expertise across the capital structure and cover everything from modeling and structuring equity investments to placing senior secured debt. Our classes cater to individuals interested in investment banking, investment management, private equity, mezzanine finance, structured finance, venture debt, and distressed credit. Leverage Academy, LLC also provides resume consulting, career guidance, and potential internship opportunities to students who enroll.<br />Leverage Academy Middle East is a joint venture with employees at Saudi ARAMCO and EFG Hermes, an investment bank based in Egypt and the UAE. The focus here is to educate and inspire Middle Eastern entrepreneurs and financiers to learn practical methods to value and structure deals in the EMEA region. Leverage Academy employees are either currently employed by or have experience working at:<br />PARTNERSHIPS AROUND THE GLOBE WITH SAUDO ARAMCO AND EFG HERMES BANK<br />
    5. 5. Instructor Experience<br />RELATIONSHIPS WITH FIRMS ACROSS U.S.<br />
    6. 6. 6<br />Sales & Trading<br />Asset Management<br />Principal Investments<br />Investment Banking / Corporate Finance<br /><ul><li> Industry Coverage
    7. 7. M&A advisory
    8. 8. Debt
    9. 9. Equity
    10. 10. Convertibles
    11. 11. Restructuring
    12. 12. Market making
    13. 13. Equities
    14. 14. Bonds
    15. 15. Derivatives
    16. 16. Foreign Exchange
    17. 17. Commodities
    18. 18. Interest rates
    19. 19. Mutual funds
    20. 20. Pension funds
    21. 21. Private Banking
    22. 22. High net worth
    23. 23. Private equity
    24. 24. Real estate
    25. 25. Venture capital</li></ul>Investment Banking Overview<br />INTERVIEW TIPS AND EXPLANATION<br />
    26. 26. IBD Program Breakdown<br />Corporate Clients<br />Investor Clients & Markets<br />Corporate Finance <br />& Advisory<br />Capital Markets<br />Sales & Trading<br />Chinese Wall<br />Industry Groups<br />Product Groups<br />Equity Sales<br />Equity Trading<br />Healthcare<br />M & A<br />Fixed Income Sales<br />Real Estate<br />Leveraged Finance<br />Fixed Income Trading<br />Financial Institutions<br />Private Placements<br />Foreign Exchange<br />Financial Sponsors<br />Derivatives<br />Consumer<br />Proprietary Trading<br />Equity Capital Markets<br />Media & Telecom<br />Research<br />Latin America<br />Debt Capital Markets<br />Etc.<br />GROUP EXPLANATIONS & DISCUSSION<br />
    27. 27. Excel Mobility<br />OVER ONE HUNDRED EXCEL SHORTCUTS PROVIDED FOR EXCEL 2003 & 2007<br />
    28. 28. 9<br />Capital IQ Software Training<br />HOW TO PROCURE SEC FILINGS FOR ANALYSIS<br />
    29. 29. 10<br />Capital IQ Software Training<br />HOW TO USE INDUSTRY SOFTWARE<br />
    30. 30. 11<br />Bloomberg Training<br />HOW TO USE INDUSTRY SOFTWARE<br />
    31. 31. 12<br />Bloomberg Training<br />HOW TO USE INDUSTRY SOFTWARE<br />
    32. 32. 13<br />Investing<br />Financing<br />Operating<br />Strategy Formulation<br /><ul><li> Firm’s goals
    33. 33. Business approach
    34. 34. Environmental factors
    35. 35. Competitors
    36. 36. Economic conditions
    37. 37. Regulation
    38. 38. Demographics
    39. 39. Receivables
    40. 40. Inventories
    41. 41. PPE
    42. 42. Research & Development
    43. 43. Employee training
    44. 44. Private equity
    45. 45. Short term credit
    46. 46. Long term credit
    47. 47. Mezzanine debt
    48. 48. Subordinated debt
    49. 49. Manufacturing
    50. 50. Supply chain management, distribution
    51. 51. Selling, retailers and wholesalers
    52. 52. Service packages
    53. 53. Value creation</li></ul>Financial Statement Analysis<br />DISCUSSION OF FINANCIAL STATEMENT ANALYSIS<br />
    54. 54. Private Equity Structure <br />Limited Partners <br />Investors: financial institutions, pension funds, hedge funds, fund of funds, endowments, family offices, high net worth individuals<br />ABC Group<br />General Partner<br />Private Equity Fund<br />Limited Partnership<br />UNDERSTANDING OF PRIVATE EQUITY<br />Investments<br />Various Equity Investments (Residual Interest)<br /><ul><li> Targeted Return: 20-35% IRR
    55. 55. Compensation Structure: 2% annual fee, 20% carry (upside)
    56. 56. Investment professionals invest alongside limited partners
    57. 57. Industry Focus: Welsh Carson, ABRY Partners, Warburg Pincus</li></li></ul><li>Transaction Structures<br />Senior<br />$4.0<br />Lender<br />Store loans<br />Finance Company<br />WC Loan<br />Corporation C<br />Purchasing Subsidiary<br />(Acquires Receivables)<br />Corporation D<br />Leasing Subsidiary<br />(Leases Stores)<br />$9.0<br />INTRODUCTION TO LEGAL FRAMEWORK<br />Corporation B<br />Operating Subsidiary<br />(Opco)<br />Senior Lender<br />Revolver & Term<br />(Secured)<br />Junior<br />$6.0<br />Corporation A<br />Parent Corporation<br />(Holdco)<br />General Partner<br />Mezzanine<br />(Unsecured)<br />$5.0<br />Stockholders<br />
    58. 58. The two main rating agencies, Standard & Poor’s (“S & P”) and Moody’s Investors Service (“Moody’s”), have several different ratings grades as shown below:<br />Companies rated in the BBB/Baa category and above are classified as “investment grade” while those rated in the BB/Ba category and lower are classified as “high yield.”<br />RATINGS AGENCIES DISCUSSION AND TYPES OF FINANCING<br />Financing Alternatives<br />
    59. 59. 17<br />IN DEPTH DISCUSSION OF CAPITAL STRUCTURE AND PIK INTEREST<br />Capital Structure<br />
    60. 60. 18<br />Credit analysis is an assessment of risk inherent in a specific bond issue, bank facility, or company based both on objective and subjective measures, including: <br />Typically, credit analysis is performed in the context of any of the following events:<br /><ul><li>A new issue of securities or obtaining a new bank facility;
    61. 61. An acquisition of strategic significance;
    62. 62. An LBO or other leveraging technique; or
    63. 63. A material change in the operating or financial performance of a company.</li></ul>CREDIT ANALYSIS WITH BANK RATIOS<br />Credit Analysis<br />
    64. 64. Basic Forecasting & Triggers<br />MODELING BEST PRACTICES<br />
    65. 65. Leveraged Buyout Modeling - PE<br />SOURCES & USES, IN DEPTH LBO MODELING<br />
    66. 66. Capital Structure – Hedge Funds<br />CAPITAL STRUCTURE DISCUSSION & MODELING<br />
    67. 67. Upstream<br />Exploration & Production<br />5 Steps (Finding and Producing Hydrocarbons)<br />Also known as F&D, finding and development costs. Development costs are costs of development planning, reservoir modeling, optimization, well design plans, drilling and completion of wells, and installing the infrastructure for gathering and processing.<br />Production costs include the costs of lifting oil and gas out of the ground and to the surface. They include the costs of gathering and process hydrocarbons. DD&A (Depreciation, Depletion, and Amortization) costs here are incorporated into production costs.<br />Costs involved with plugging and abandoning (P&A) a dry-hole appraisal well or a mature field that is no longer in production.<br />Acquisition costs are costs of acquiring economic interest for right to explore, drill, and produce oil, natural gas, and byproducts.<br />Also known as finding costs. Costs involved in identifying prospective wells, exploratory drilling costs, and seismic costs.<br />INDUSTRY SPECIFIC CLASSES<br />
    68. 68. Strategy & Implementation<br />Competitive Analysis<br />Strategy & Implementation<br />
    69. 69. Thank You<br />Please e-mail info@leverageacademy.com for enrollment.<br />Financial aid is available.<br />$50 for referrals.<br />Leverage Academy, LLC140 Clarendon Street, Boston, MA 02116info@leverageacademy.com“As I said there is nothing wrong with failing. Pick yourself up and try it again. You never are going to know how good you really are until you go out and face failure.”-Henry Kravis<br />