Leveraged Buyouts -- Contents -- Preface -- Part One Leveraged Buyout Overview -- Chapter 1 Leveraged Buyout Theory -- Cash Availability, Interest, and Debt Pay-Down -- Operation Improvements -- Multiple Expansion -- What Makes Good Leveraged Buyout? -- Exit Opportunities -- Is Heinz a Leveraged Buyout? -- Chapter 2 What Is Value? -- Book Value -- Market Value -- Enterprise Value -- Multiples -- Three Core Methods of Valuation -- Comparable Company Analysis -- Precedent Transactions Analysis -- Discounted Cash Flow Analysis -- Chapter 3 Leveraged Buyout Analysis -- Purchase Price -- Public versus Private Company Purchase -- Types of Acquisitions -- Sources and Uses of Funds -- Uses of Funds -- Sources of Funds -- IRR Analysis -- Initial Assumptions -- Steps to Investor Return -- Part Two Leveraged Buyout Full-Scale Model -- Chapter 4 Assumptions -- Purchase Price -- The Treasury Method -- Target Share Price -- Purchase Premium -- Purchase Price -- Sources of Funds -- Equity -- Debt -- Percentage of Total Capital -- Percentage of Equity Ownership -- Uses of Funds -- Net Debt -- Transaction Fees -- Chapter 5 The Income Statement -- Revenue -- Cost of Goods Sold -- Gross Profit -- Operating Expenses -- Other Income -- EBITDA -- Depreciation and Amortization -- EBIT -- Interest -- EBT -- Taxes -- Net Income -- Nonrecurring and Extraordinary Items -- Distributions -- Net Income (as Reported) -- Shares -- Earnings per Share (EPS) -- Heinz Income Statement -- Revenue -- Getting to EBITDA -- Digging Up Depreciation and Amortization -- Cost of Goods Sold -- Gross Profit -- Selling, General, and Administrative Expenses -- Fund Management Fee -- Cost Savings -- Other Income -- EBITDA -- Beyond EBITDA -- Depreciation and Amortization -- EBIT -- Interest -- Other Expense, Net -- EBT -- Taxes -- Net Income (Adjusted).

Nonrecurring Events and Extraordinary Items -- Net Income (After Nonrecurring Events) -- Distributions -- Net Income (as Reported) -- Shares and EPS -- Last Twelve Months (LTM ) -- Income Statement-Projections -- Revenue -- Cost of Goods Sold -- Operating Expenses -- Fund Management Fee -- Cost Savings -- Other Income -- Depreciation and Amortization -- Interest Income -- Taxes -- Nonrecurring Events and Extraordinary Items -- Noncontrolling Interest, Shares, and Earnings per Share -- Chapter 6 The Cash Flow Statement -- Cash Flow from Operating Activities -- Revenue -- Cost of Goods Sold -- Operating Expenses -- Depreciation -- Interest -- Taxes -- Cash Flow from Investing Activities -- Cash Flow from Financing Activities -- Financial Statement Flows Example -- Heinz Cash Flow Statement -- Cash Flow from Operating Activities -- Cash Flow from Investing Activities -- Cash Flow from Financing Activities -- Heinz Last Twelve Months (LTM ) Cash Flow -- Cash Flow Statement Projections -- Cash Flow from Operating Activities -- Cash Flow from Investing Activities -- Cash Flow from Financing Activities -- Chapter 7 The Balance Sheet -- Assets -- Current Assets -- Noncurrent Assets -- Liabilities -- Current Liabilities -- Noncurrent Liabilities -- Heinz Balance Sheet -- Current Assets -- Noncurrent Assets -- Current Liabilities -- Noncurrent Liabilities -- Equity and Shareholders' Equity -- Chapter 8 Balance Sheet Adjustments -- The Buyer is Paying for -- The Buyer is Receiving -- Goodwill -- Step-Up of Existing Assets -- New Intangible Assets -- Deferred Tax Adjustments -- Purchase Price Balance Sheet Adjustment -- Net Debt Balance Sheet Adjustment -- Sources Balance Sheet Adjustment -- Transaction Fees Balance Sheet Adjustment -- Heinz Balance Sheet Adjustments -- Net Debt -- Goodwill and Intangible Assets -- Balance Sheet Adjustments.

Chapter 9 Depreciation Schedule -- Straight-Line Depreciation -- Accelerated Depreciation -- Declining Balance -- Sum of the Year's Digits -- Modified Accelerated Cost Recovery System (MACRS) -- Deferred Taxes -- NOL Carryback Example -- Deferred Tax Liability -- Projecting Depreciation -- Straight-Line Depreciation -- Projecting Amortization -- Projecting Deferred Taxes -- Chapter 10 Working Capital -- Asset -- Current Asset -- Liability -- Current Liability -- Operating Working Capital -- Heinz's Operating Working CapitaL -- Relating Operating Working Capital Line Items to the Balance Sheet and Cash Flow Statement -- Receivables -- Inventories -- Prepaid Expenses and Other Current Assets -- Accounts Payable -- Accrued Liabilities -- Accrued Income Taxes -- Projecting Operating Working Capital -- Receivables -- Inventories -- Prepaid Expenses and Other Current Assets -- Accounts Payable -- Accrued Liabilities -- Accrued Income Taxes -- Operating Working Capital and the Cash Flow Statement -- Changes in Receivables -- Changes in Inventories -- Changes in Prepaid Expenses and Other Current Assets -- Changes in Accounts Payable -- Changes in Accrued Liabilities -- Changes in Accrued Income Taxes -- Chapter 11 Balance Sheet Projections -- Cash Flow Drives Balance Sheet versus Balance Sheet Drives Cash Flow -- Assets -- Liabilities -- Balancing an Unbalanced Balance Sheet -- New York School of Finance Balance Sheet Balancing Method -- Chapter 12 Debt Schedule and Circular References -- Debt Schedule Structure -- Modeling the Debt Schedule -- Revolving Line of Credit ("Revolver") -- Mandatory and Nonmandatory Issuances/(Retirements) -- Term Facilities -- The Notes -- Total Issuances/(Retirements) -- Total Interest Expense -- Cash Available to Pay Down Debt -- Circular References -- Circular Reference #Value! Errors -- Automatic Debt Pay-Downs.

Basic Switches -- Finalizing the Model -- Chapter 13 Leveraged Buyout Returns -- Exit Value -- Returns to 3G Capital -- EBITDA Improvements -- Multiple Expansion -- Debt Pay-Down -- Conclusion -- Part Three Advanced Leveraged Buyout Techniques -- Chapter 14 Accelerated Depreciation -- MACRS -- Accelerated versus Straight-Line Depreciation -- Chapter 15 Preferred Securities, Dividends, and Returns to Berkshire Hathaway -- Preferred Securities -- Preferred Dividends -- Returns to Berkshire Hathaway -- Chapter 16 Debt Covenant Ratios, and Debt Fee Amortization -- Coverage Ratios -- Debt Service Coverage -- Interest Coverage -- Fixed Charge Coverage -- Leverage Ratios -- Debt Fee Capitalization and Amortization -- Chapter 17 Paid-in-Kind Securities -- Appendices -- Appendix 1 Model Quick Steps -- Appendix 2 Financial Statement Flows -- Appendix 3 Excel Hot Keys -- About the Companion Website -- About the Author -- Index.