Agenda

History of Private Equity Funds and Investment Bankers

1. Brief history including evolution and types of sellers/buyers
2. Development and types of lenders
3. PE fund dynamics – structure (GP/LP)/returns/carry, types of investors/fundraising
4. PE company structure (Investment Committee, Regulatory Compliance, Acctg/Fin, HR, BizDev & fundraising, deal teams)
5. Fund reporting/communications with investors/Fund lifecycles

 Marketing a Deal – The IB Role

1.  What is the seller/buyer looking for (size, industry, philosophy, etc.)
2. Creating a book
3. How to develop a network/relationships (interaction with all the players – I-banks, brokers, lenders, lawyers, accountants, consultants, etc.)
4. Do’s & Don’ts
5. Tools?

Deal Screening / Pre-LOI Diligence – PE/Strategic Buyer 

1. Fit with firm
2. Porter’s 5 Forces
3. 4 Layers of Value Creation
4. Important variables (moat, customers, management, IP, etc., etc…)
5. Modeling, valuation, quick diligence leading to Investment Committee presentation
6. Structuring/Cap Table – Debt raise

LOI to Closing (Execution) 

1. Deal terms – The Legal Landscape
2. Due Diligence - what and when
   - Financial due diligence
   - Tax due diligence
   - Human Resources due diligence
   - Leadership and Cultural due diligence
   - Commercial due diligence
   - Information Technology (IT) due diligence
   - Intellectual Property due diligence
3. Subjective factors (management, backgrounds, etc.)
4. Negotiating Differences between byer/seller as a result of due diligence

Integration/Monitoring – Measuring Success

1. Corporate Governance (BOD, HR, Accountability, levels of approval, etc)
2. 90 Day plans (integration, goals and objectives, KPIs, etc.
3. Financial integration – info sharing, regulatory (permits, licenses, taxes, etc)
4. Portfolio Monitoring – communication plan, aggregating data, forecasting, covenant monitoring, 3rd party relationships, action team