Fin461StudyGuide - LBO returns o IRR o Cash return LBO...

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FIN 461 – Exam 2 Study Suggestions Accretion/Dilution analysis: Premise Factors that lead to dilution Calculating fully diluted shares outstanding o Treasury stock method o If-converted method o Net share settlement method Executing a basic accretion/dilution analysis Hedge funds: Characteristics Fee structure Withdrawal limitations o Lock-ups o Gates o Side pockets Fund strategies Merger arbitrage Performance o Biases in measuring performance Impact of hedge funds on markets Private equity: Broad definition Structure o GPs vs. LPs Characteristics of PE transactions Exit strategies Compensation Leveraged buyouts: Premise Importance of leverage to LBO model Key participants Characteristics of LBO candidates (targets) Leveraged buyouts (continued):
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Unformatted text preview: LBO returns o IRR o Cash return LBO return drivers Monetization strategies LBO financing Impact of changing capital structure on LBO analysis The M&A sale process: Role of the investment bank Four ways to conduct a sale o Pros and cons Other restructuring topics: Business alliances o Types o Motivations o Deal structuring issues Alternative exit strategies o Why exit a business? o Types o Motives Bankruptcy o Technical vs. legal insolvency o Motivations for filing o Chapter 11 vs. Chapter 7 Initial public offerings: Rosetta Stone IPO Why go public? Why stay private? IPO timing Underwriter selection IPO underpricing o Costs of going public Post-IPO performance...
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