Liability Insurance Training Course

The key objective of this training course is to empower professionals to—
• receive a comprehensive understanding of LBO and LBO models to assist one’s organisation in successfully conducting such transactions
• evaluate, on behalf of one’s organisation, requests for various methods of finance for LBO transactions, thereby establishing oneself as a dependable, credible employee
• review and structure loans effectively to minimise risks and maximise benefits
• analyse important factors and recommend strategies for LBO transactions to be undertaken by one’s organisation
• prepare and structure project finance contracts covering all applicable clauses and risks, thereby protecting one’s organisation against any risk or financial loss, in turn proving one’s talent and gaining greater growth opportunities
• examine current systems within one’s organisation and present reports on its actual financial position and capability to conduct such transactions
• take strategic steps at an organisational level to overcome any financial loss worrying the organisation, in turn contributing to organisational development
• acquire relevant multitasking skills and superior knowledge to handle multiple facets of LBO transactions, thus giving one the confidence to successfully take up roles across any organisation, fostering faster career progression
• mentor other professionals on important theories and practices related to LBO transactions
Course Content
Characteristics of LBOs
• Stable cash flows
• Relatively low fixed costs
• Relatively little existing debt
• Valuation
• Strong management team
Components of an LBO Capital Structure
• Bank debt
• High yield debt/subordinated debt
• Mezzanine debt
• Equity
• Credit metrics
• Sponsor internal rate of return
Module 3 – Steps to LBO Modelling
• Assumptions
• Financial statements
• Transaction balance sheet
• Debt and interest schedules
• Credit metrics
• Discounted cash flow/internal rates of return
• Sensitivity analysis, charts and graphs
Key Credit Metrics in an LBO Model
• Debt/EBITDA
• Interest coverage ratio
• Debt service coverage ratio
• Fixed charge coverage ration
Historical Financial Statements
• Income statement
• Balance sheet
• Cash flow statement
• Supporting schedules
• Goodwill and purchase price allocation
Forecast Financial Statements
• Forecast setup
• Income statement
• Balance sheet
• Supporting schedules
• Cash flow statement
Strategies for LBO Financing
• Seller financing
• Equipment financing
• Own funds
• Senior debt
• Subordinated debt
• Mezzanine debt
Characteristics of Leveraged Loans
• Principal amortization
• Secured
• Floating rate
• Term
• Covenants
• Private
• Prepayment
Loan Structuring
• Purpose, term and repayment matching
• Loan documentation
• Loan agreements and covenants
• Interest rates and fees
• Pricing for risks
• Linking price and risk to capital adequacy
Acquisition Finance
• Mergers and acquisitions
• Target company valuation
• Acquisition financing through equity and debt
• Mezzanine finance
• Paper finance
• Shareholder impact

METHODOLOGY
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

ne’s organisation in successfully conducting such transactions
• evaluate, on behalf of one’s organisation, requests for various methods of finance for LBO transactions, thereby establishing oneself as a dependable, credible employee
• review and structure loans effectively to minimise risks and maximise benefits
• analyse important factors and recommend strategies for LBO transactions to be undertaken by one’s organisation
• prepare and structure project finance contracts covering all applicable clauses and risks, thereby protecting one’s organisation against any risk or financial loss, in turn proving one’s talent and gaining greater growth opportunities
• examine current systems within one’s organisation and present reports on its actual financial position and capability to conduct such transactions
• take strategic steps at an organisational level to overcome any financial loss worrying the organisation, in turn contributing to organisational development
• acquire relevant multitasking skills and superior knowledge to handle multiple facets of LBO transactions, thus giving one the confidence to successfully take up roles across any organisation, fostering faster career progression
• mentor other professionals on important theories and practices related to LBO transactions
Course Content
Characteristics of LBOs
• Stable cash flows
• Relatively low fixed costs
• Relatively little existing debt
• Valuation
• Strong management team
Components of an LBO Capital Structure
• Bank debt
• High yield debt/subordinated debt
• Mezzanine debt
• Equity
• Credit metrics
• Sponsor internal rate of return
Module 3 – Steps to LBO Modelling
• Assumptions
• Financial statements
• Transaction balance sheet
• Debt and interest schedules
• Credit metrics
• Discounted cash flow/internal rates of return
• Sensitivity analysis, charts and graphs
Key Credit Metrics in an LBO Model
• Debt/EBITDA
• Interest coverage ratio
• Debt service coverage ratio
• Fixed charge coverage ration
Historical Financial Statements
• Income statement
• Balance sheet
• Cash flow statement
• Supporting schedules
• Goodwill and purchase price allocation
Forecast Financial Statements
• Forecast setup
• Income statement
• Balance sheet
• Supporting schedules
• Cash flow statement
Strategies for LBO Financing
• Seller financing
• Equipment financing
• Own funds
• Senior debt
• Subordinated debt
• Mezzanine debt
Characteristics of Leveraged Loans
• Principal amortization
• Secured
• Floating rate
• Term
• Covenants
• Private
• Prepayment
Loan Structuring
• Purpose, term and repayment matching
• Loan documentation
• Loan agreements and covenants
• Interest rates and fees
• Pricing for risks
• Linking price and risk to capital adequacy
Acquisition Finance
• Mergers and acquisitions
• Target company valuation
• Acquisition financing through equity and debt
• Mezzanine finance
• Paper finance
• Shareholder impact

METHODOLOGY
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:
1ST BATCH: 18th – 21st Mar,2025
2ND BATCH: 22nd – 25th July,2025
3RD BATCH: 18th – 21th Nov,2025