Sector-Specific Valuation and Financing

Sector-Specific Valuation and Financing

SEMINAR LENGTH

Variable

SUBJECT FOCUS/CONTENT

  • Analysis of economic drivers, competitive structure, profitability, technology, capital structure norms, and growth prospects in a specific industry sector
  • Review of valuation concepts and techniques used in a specific industry sector, in both domestic and international and in public and private markets
  • Examination of structuring issues, tax implications, and deal process in a specific industry sector
  • Exploration of structured finance and derivative securities applications in a specific industry sector
  • Framework for marketing sector-specific financing ideas to bank clients which includes: identifying a client’s needs, reviewing relevant valuations, financing alternatives and current market conditions, proposing the best solution and executing the deal
  • Detailed transaction studies that explain execution and marketing problems or opportunities that can arise in a specific industry sector

Sector-Specific Valuation

  • Methodologies
    • Relative Valuation/Public Market Valuation
    • DCF Analysis
    • Industry Cost of Capital
    • Comparable Transactions
    • Sector-Specific Industry Metrics
  • Emerging Markets Valuation Issues
    • Currency-driven adjustments
    • Inflation-driven adjustments
    • Local market factors

Sector-Specific Deal Structuring and Process

  • Capital Structure:
    • Industry capital structure norms
    • Bank credits/senior debt
    • Private market financing
    • Public market bond financing, 144A
    • Equity investors
    • Tax credits
    • Vendor Financing
  • Buy-side Capital Providers
    • Mutual funds
    • Pension funds
    • Insurers
    • Trust departments
    • Endowments/foundations
    • Venture capital
    • Private Equity

Structured Finance:  Applications

  • Securitizations of Receivable Streams
  • Lease Finance
  • Uses in Risk Management
  • Tax Issues

SECTORS AVAILABLE

  • Telecoms:  cellular, PCS, CLECs, fixed line
  • Media:  cable, broadband, over-the-air
  • Internet:  ISPs, content, “backbone”
  • Financial Services:  banks, insurers, securities firms, asset managers
  • Tourism:  lodging, restaurants
  • Retailing:  grocers, general merchants, apparel
  • Beverages:  bottlers/concentrate producers, soda/alcoholic beverages, distributors
  • Food:  processors, branded manufacturers
  • Energy:  oil and gas, power utilities
  • Materials:  forest products, minerals
  • Manufacturing:  machinery, auto-related

TARGET AUDIENCE

  • Investment bankers who cover specific sectors
  • Relationship Managers who cover clients in specific sectors
  • Capital Markets and other product specialists that help investment bankers and RMs market and execute mandates in specific sectors

PARTICIPANT OBJECTIVES

By the end of the workshop, participants will:

  • Understand the basics of valuation in a specific sector
  • Grasp the key issues in capital structure in a specific sector, as well as relevant structured finance applications
  • Be familiar with transaction process and mechanics in a specific sector
  • Be able to identify opportunities and work with their clients in defining opportunities in specific sector
  • Be ready to prepare a pitch book and market finance ideas to sector-specific clients

METHODOLOGY

Lectures, presentations, discussions, and case studies. Participants will be asked to identify potential client applications in advance of attending the course with a view to making presentations and working with specialists during the session to develop a call plan and marketing approach.