{"product_id":"leveraged-buyouts-website-isbn-9781118674543","title":"Leveraged Buyouts, + Website","description":"\u003cb\u003eA comprehensive look at the world of leveraged buyouts\u003c\/b\u003e  \u003cp\u003eThe private equity industry has grown dramatically over the past twenty years. Such investing requires a strong technical know-how in order to turn private investments into successful enterprises. That is why Paul Pignataro has created \u003ci\u003eLeveraged Buyouts + Website: A Practical Guide to Investment Banking and Private Equity.\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eEngaging and informative, this book skillfully shows how to identify a private company, takes you through the analysis behind bringing such an investment to profitability—and further create high returns for the private equity funds. It includes an informative leveraged buyout overview, touching on everything from LBO modeling, accounting, and value creation theory to leveraged buyout concepts and mechanics.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides an in-depth analysis of how to identify a private company, bring such an investment to profitability, and create high returns for the private equity funds\u003c\/li\u003e \u003cli\u003eIncludes an informative LBO model and case study as well as private company valuation\u003c\/li\u003e \u003cli\u003eWritten by Paul Pignataro, founder and CEO of the New York School of Finance\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIf you're looking for the best way to hone your skills in this field, look no further than this book.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eThe Heinz Case Study xii\u003c\/p\u003e \u003cp\u003eHow This Book Is Structured xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One Leveraged Buyout Overview 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Leveraged Buyout Theory 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash Availability, Interest, and Debt Pay-Down 3\u003c\/p\u003e \u003cp\u003eOperation Improvements 4\u003c\/p\u003e \u003cp\u003eMultiple Expansion 4\u003c\/p\u003e \u003cp\u003eWhat Makes Good Leveraged Buyout? 4\u003c\/p\u003e \u003cp\u003eExit Opportunities 5\u003c\/p\u003e \u003cp\u003eIs Heinz a Leveraged Buyout? 5\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 What Is Value? 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBook Value 7\u003c\/p\u003e \u003cp\u003eMarket Value 7\u003c\/p\u003e \u003cp\u003eEnterprise Value 8\u003c\/p\u003e \u003cp\u003eMultiples 12\u003c\/p\u003e \u003cp\u003eThree Core Methods of Valuation 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Leveraged Buyout Analysis 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePurchase Price 19\u003c\/p\u003e \u003cp\u003eSources and Uses of Funds 22\u003c\/p\u003e \u003cp\u003eIRR Analysis 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Leveraged Buyout Full-Scale Model 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Assumptions 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePurchase Price 57\u003c\/p\u003e \u003cp\u003eSources of Funds 63\u003c\/p\u003e \u003cp\u003eUses of Funds 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 The Income Statement 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRevenue 76\u003c\/p\u003e \u003cp\u003eCost of Goods Sold 76\u003c\/p\u003e \u003cp\u003eOperating Expenses 77\u003c\/p\u003e \u003cp\u003eOther Income 78\u003c\/p\u003e \u003cp\u003eDepreciation and Amortization 80\u003c\/p\u003e \u003cp\u003eInterest 80\u003c\/p\u003e \u003cp\u003eTaxes 81\u003c\/p\u003e \u003cp\u003eNonrecurring and Extraordinary Items 82\u003c\/p\u003e \u003cp\u003eDistributions 82\u003c\/p\u003e \u003cp\u003eShares 83\u003c\/p\u003e \u003cp\u003eHeinz Income Statement 84\u003c\/p\u003e \u003cp\u003eLast Twelve Months (LTM) 108\u003c\/p\u003e \u003cp\u003eIncome Statement—Projections 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 The Cash Flow Statement 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash Flow from Operating Activities 133\u003c\/p\u003e \u003cp\u003eCash Flow from Investing Activities 137\u003c\/p\u003e \u003cp\u003eCash Flow from Financing Activities 137\u003c\/p\u003e \u003cp\u003eFinancial Statement Flows Example 138\u003c\/p\u003e \u003cp\u003eHeinz Cash Flow Statement 144\u003c\/p\u003e \u003cp\u003eHeinz Last Twelve Months (LTM) Cash Flow 154\u003c\/p\u003e \u003cp\u003eCash Flow Statement Projections 160\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 The Balance Sheet 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAssets 179\u003c\/p\u003e \u003cp\u003eLiabilities 182\u003c\/p\u003e \u003cp\u003eHeinz Balance Sheet 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Balance Sheet Adjustments 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGoodwill 200\u003c\/p\u003e \u003cp\u003eHeinz Balance Sheet Adjustments 208\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Depreciation Schedule 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStraight-Line Depreciation 222\u003c\/p\u003e \u003cp\u003eAccelerated Depreciation 222\u003c\/p\u003e \u003cp\u003eDeferred Taxes 227\u003c\/p\u003e \u003cp\u003eProjecting Depreciation 231\u003c\/p\u003e \u003cp\u003eProjecting Amortization 241\u003c\/p\u003e \u003cp\u003eProjecting Deferred Taxes 244\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Working Capital 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAsset 247\u003c\/p\u003e \u003cp\u003eLiability 247\u003c\/p\u003e \u003cp\u003eOperating Working Capital 248\u003c\/p\u003e \u003cp\u003eHeinz’s Operating Working Capital 251\u003c\/p\u003e \u003cp\u003eProjecting Operating Working Capital 262\u003c\/p\u003e \u003cp\u003eOperating Working Capital and the Cash Flow Statement 271\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Balance Sheet Projections 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash Flow Drives Balance Sheet versus Balance\u003c\/p\u003e \u003cp\u003eSheet Drives Cash Flow 283\u003c\/p\u003e \u003cp\u003eBalancing an Unbalanced Balance Sheet 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Debt Schedule and Circular References 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDebt Schedule Structure 309\u003c\/p\u003e \u003cp\u003eModeling the Debt Schedule 310\u003c\/p\u003e \u003cp\u003eCircular References 329\u003c\/p\u003e \u003cp\u003eAutomatic Debt Pay-Downs 337\u003c\/p\u003e \u003cp\u003eBasic Switches 339\u003c\/p\u003e \u003cp\u003eFinalizing the Model 339\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Leveraged Buyout Returns 351\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExit Value 351\u003c\/p\u003e \u003cp\u003eReturns to 3G Capital 355\u003c\/p\u003e \u003cp\u003eMultiple Expansion 361\u003c\/p\u003e \u003cp\u003eDebt Pay-Down 364\u003c\/p\u003e \u003cp\u003eConclusion 364\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Advanced Leveraged Buyout Techniques 365\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Accelerated Depreciation 367\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMACRS 367\u003c\/p\u003e \u003cp\u003eAccelerated versus Straight-Line Depreciation 372\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Preferred Securities, Dividends, and Returns to Berkshire Hathaway 377\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePreferred Securities 377\u003c\/p\u003e \u003cp\u003ePreferred Dividends 378\u003c\/p\u003e \u003cp\u003eReturns to Berkshire Hathaway 388\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Debt Covenant Ratios, and Debt Fee Amortization 395\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCoverage Ratios 395\u003c\/p\u003e \u003cp\u003eLeverage Ratios 397\u003c\/p\u003e \u003cp\u003eDebt Fee Capitalization and Amortization 399\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Paid-in-Kind Securities 409\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eApendixes\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAppendix 1: Model Quick Steps 417\u003c\/p\u003e \u003cp\u003eAppendix 2: Financial Statement Flows 419\u003c\/p\u003e \u003cp\u003eIncome Statement to Cash Flow 419\u003c\/p\u003e \u003cp\u003eCash Flow to Balance Sheet 420\u003c\/p\u003e \u003cp\u003eAppendix 3: Excel Hot Keys 421\u003c\/p\u003e \u003cp\u003eAbout the Companion Website 423\u003c\/p\u003e \u003cp\u003eAbout the Author 425\u003c\/p\u003e \u003cp\u003eIndex 427\u003c\/p\u003e  \u003cp\u003e“Pignataro’s step-by-step approach is ideal for anyone trying to learn or hone the analytical skills necessary to model the basic viability of an LBO, from the point of view of the company as well as the investor. He explains valuational concepts and how to capture them in Excel spreadsheets, the latter described down to the level of individual keystrokes…. \u003ci\u003eLeveraged Buyouts\u003c\/i\u003e is a self-contained course in rudimentary financial modeling (and a crash course in Excel as well). It’s a perfect read for anyone wanting to enter the world of investment banking or private equity.”\u003cbr\u003e —\u003cb\u003eInvesting.com\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePAUL PIGNATARO\u003c\/b\u003e is the founder and CEO of the New York School of Finance (NYSF). He has over thirteen years of experience in investment banking and private equity in business mergers, acquisitions, restructurings, asset divestitures, asset acquisitions, and debt and equity transactions covering the oil, gas, power and utility, Internet and technology, real estate, defense, travel, banking, and service industries. Mr. Pignataro continues to participate on the training team, actively providing training at bulge bracket banks and M\u0026amp;A teams at corporations, and billion-dollar funds. Prior to his entrepreneurial endeavors, Mr. Pignataro worked at TH Lee Putnam Ventures, a $1 billion private equity firm affiliated with buyout giant Thomas H. Lee Partners. Prior to TH Lee, Mr. Pignataro worked in the investment banking department of Morgan Stanley.   \u003c\/p\u003e\u003cp\u003eThe private equity industry is thriving. To get some idea of just how fast the industry has grown over the past decade, one only need consider that private equity firms invested nearly 90% more capital in 2010 than they did in 2009, for a total of $225 billion invested in more than 3,000 transactions, compared to $119 billion the year before. And that trend has continued at a rapid clip in the three years since. \u003c\/p\u003e\u003cp\u003eBut turning private investments into successful enterprises, while pulling down promised, or better than expected, returns for partners takes a particular skill set and technical know-how not readily acquired by those outside the industry—until now. \u003c\/p\u003e\u003cp\u003eIn \u003ci\u003eLeveraged Buyouts\u003c\/i\u003e, Paul Pignataro, founder and CEO of the world-renowned New York School of Finance, takes a unique approach to educating you in the tools of the private equity trade—by building on a book-length case study of the 2013 Berkshire Hathaway\/3G Capital $28 billion Heinz Co. LBO. \u003c\/p\u003e\u003cp\u003eHow viable is such a buyout? How are Berkshire Hathaway and 3G Capital finding value in such an investment? What are their potential returns? Clearly and concisely, Paul Pignataro explains the analytical approach used by Wall Street analysts to answer such questions, guiding you, step by step, through the process of developing a sophisticated financial model. \u003c\/p\u003e\u003cp\u003eAssuming the role of a Wall Street analyst, you get an up-close and personal look at how the modeling process works, while acquiring the tools for developing your own analyses. You'll evaluate the potential leveraged buyout of Heinz, determining its current financial standing, projecting its future performance, and estimating the potential return on investment. \u003c\/p\u003e\u003cp\u003eAnd to help further your LBO education, the \u003ci\u003eLeveraged Buyouts\u003c\/i\u003e companion website supplies you with downloadable models that bring all the methods described in the book to life, while offering you an opportunity to hone your analytical skills by building an original Heinz Co. LBO model from scratch. You'll also find chapter questions and answers to help you test your knowledge of the material presented in the book. \u003c\/p\u003e\u003cp\u003eWhether you are an investor or fund manager looking to make your own acquisitions, or you aspire to a career in the burgeoning private equity or investment banking industries, \u003ci\u003eLeveraged Buyouts\u003c\/i\u003e gets you up and running—fast—with the tools and techniques you need to perform expert LBO analyses. If you're a private equity or investment banking professional looking for a reliable way to refresh and fine-tune your analytical skills, this book definitely is for you as well.\u003ci\u003e\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989525774565,"sku":"NP9781118674543","price":110.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118674543.jpg?v=1761784463","url":"https:\/\/k12savings.com\/products\/leveraged-buyouts-website-isbn-9781118674543","provider":"K12savings","version":"1.0","type":"link"}