Included courses

The Private Equity Deal Maker

4.8 STARS

Star Rating
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About

This skills certificate has been designed by five industry experts who share 14 years of experience in private equity and leveraged finance.

Completion time

11.5 Hours

Level

Skills Certificate

About

This skills certificate has been designed by five industry experts who share 14 years of experience in private equity and leveraged finance.

Completion time

11.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Debt Products - Financing Instruments

13

0

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Video minutes13

Excel Exercises0

  • Types of debt: senior debt – revolving credit facility, term loan A-C / subordinated debt – 2nd lien term loan, HY bond, mezzanine
  • Preferred stocks and equity injection
  • Management rachet
  • Debt providers / holders: banks, insurance corps, CLOs, hedge fund, pension fund
  • Covenants
  • Collateral: 1st vs 2nd, all assets or bifucated
  • Financing fees: upfront fee, commitment fee, interest rate, PIK, OID, etc.
  • Key considerations: interest rate (PIK, OID), typical term (1 year, 5 years, 7 years), repayment (bullet, amortization)

Debt Products - Documentation

10

0

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Video minutes10

Excel Exercises0

  • Typical contracts:
    • Credit agreement
    • Indenture
    • Regulatory Documents
    • Collateral contracts
  • Typical clauses:
    • Cashsweep clauses
    • Cross default clauses: Trigger event
    • Pari-passu
    • Repayment / redemption

Debt Products - Financing Consideration Process

11

0

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Video minutes11

Excel Exercises0

  • Financing consideration: process overview
  • Addressing existing debt
  • Evaluating debt capacity
  • Analyzing collateral base
  • Considering minimum equity contribution
  • Simulating expected ratings outcome
  • Analyzing financial ratios

Debt Products - Credit Committee in Banking

10

0

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Video minutes10

Excel Exercises0

  • What is credit committee
  • Composition of credit committee materials
  • Transaction background / deal summary
  • Company overview
  • Sponsor company overview
  • Financial analysis
  • Risk analysis and mitigants

Private Equity Acquisition Analysis

75

18

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Video minutes75

Excel Exercises18

  • LBO – definition
  • Internal Rate of Return (IRR) and value analysis
  • LBO analysis models
    • LBO analysis model map
    • Assumptions
    • Sources and uses of funds
    • Sources of funds
    • Operating forecasts and cash sweeps
    • Model outputs
    • Levered valuation

Acquisition Finance and Debt Capacity

32

5

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Video minutes32

Excel Exercises5

  • Multiple based debt capacity analysis
  • Dangers of using multiples
  • Cash flow based debt capacity analysis
  • Calculating free cash flows
  • Debt tranching
  • Seniority and subordination

Advanced LBO Modeling

120

26

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Video minutes120

Excel Exercises26

  • Sources and uses of funds
  • Original issue discount
  • Fees (arrangement and commitment)
  • Creating the opening balance sheet
  • Stub period three statement model
  • Deal adjustment including amortization of debt issuance fees
  • Pro-forma balance sheet
  • Cash flows available for debt service
  • Minimum cash balance
  • Term loans and revolving credit facilities, including cash sweep
  • Mezzanine financing and PIK interest
  • Returns to mezzanine holders
  • Returns to common equity holders

Completion Mechanisms

49

8

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Video minutes49

Excel Exercises8

  • Completion accounts introduction
  • Completion accounts calculations
  • Issues with the completion accounts mechanism
  • Locked box mechanism introduction
  • Locked box mechanism calculations
  • Comparing completion accounts and locked box mechanisms

Tax Considerations

4.7 STARS

Star Rating
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About

Taxation impacts companies’ profits and having an understanding of the rules and complexities surrounding modeling and valuation is critical.

Completion time

6.5 Hours

Level

Skills Certificate

About

Taxation impacts companies’ profits and having an understanding of the rules and complexities surrounding modeling and valuation is critical.

Completion time

6.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Deferred Taxes

33

8

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Video minutes33

Excel Exercises8

  • Taxes in the financial statements
  • Tax expense, ETR and MTR
  • Tax authority numbers vs accounting numbers
  • Permanent differences
  • Temporary differences
  • Deferred tax assets and liabilities
  • Deferred tax over time
  • Deferred tax footnote

Tax Losses

12

1

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Video minutes12

Excel Exercises1

  • Losses offset against profits
  • Loss utilization
  • Carry back
  • Carry forward
  • Loss utilization restrictions

Valuing Deferred Tax and Losses

15

1

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Video minutes15

Excel Exercises1

  • Issues in valuing losses
  • Valuation impact

US Tax Changes

66

10

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Video minutes66

Excel Exercises10

  • Overview of how the tax code in the US has changed
  • Depreciation for tax versus GAAP
  • An introduction to BEAT and BEPS rules
  • Tax losses new rules
  • Foreign earnings taxation rules
  • Tax changes impact on the financial statements
  • Impact on financial modeling, depreciation, interest deduction and NOLs

Tax in M&A

14

0

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Video minutes14

Excel Exercises0

  • Inside and outside basis
  • Sale of shareholding
  • Sale of assets followed by corporate liquidation
  • Double taxation – vendor
  • Stock vs asset deals

Foundation Skills

5 STARS

Star Rating
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About

Increase your Excel efficiency and master the mathematical fundamentals that future courses rely upon.

Completion time

3 Hours

Level

Completion Certificate

About

Increase your Excel efficiency and master the mathematical fundamentals that future courses rely upon.

Completion time

3 Hours

Level

Completion Certificate

Module

Video Minutes

Excel Exercises

Foundation Skills

131

10

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Video minutes131

Excel Exercises10

  • Excel Efficiency – Menu and shortcut basics
  • Excel Efficiency – Basic formatting
  • Excel Efficiency – Basic formulas and calculations
  • Excel Efficiency – More formulas and calculations
  • Excel Efficiency – Naming cells and references
  • Basics of financial math – Present and future value
  • Basics of financial math – Annuities and Perpetuities
  • Basics of financial math – Yields and internal rate of return
  • Statistics – Basic concepts
  • Statistics – Portfolio concepts
  • Statistics – Analytic methods

The Accountant

4.5 STARS

Star Rating
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About

Quickly and confidently interpret financial data and statements, evaluate them and use the calculated information to build high-quality reports. Real company data and the latest rules are covered to ensure the methods used and skills developed are immediately applicable in the workplace.

Completion time

13 Hours

Level

Skills Certificate

About

Quickly and confidently interpret financial data and statements, evaluate them and use the calculated information to build high-quality reports. Real company data and the latest rules are covered to ensure the methods used and skills developed are immediately applicable in the workplace.

Completion time

13 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Financial Accounting Review

30

3

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Video minutes30

Excel Exercises3

  • Making entries and ensuring the balance sheet balances
  • Preparing a balance sheet
  • Preparing an income statement from the entries to retained earnings
  • Preparing a cash flow statement from the entries to the cash account
  • A review of the different categorizations on the income statement, balance sheet, and the cash flow statement

Income Statements

59

15

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Video minutes59

Excel Exercises15

  • Revenue recognition issues
  • Cost recognition issues
  • Identifying non-recurring items from the income statement, the MD&A, the notes to the accounts and the financial statement press release
  • Calculating EBIT and EBITDA for the historical year, and on an LTM basis
  • Understand the difference between basic and diluted earnings per share and calculate recurring diluted earnings per share
  • Review company profitability compared to its peer group

Working Capital

56

12

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Video minutes56

Excel Exercises12

  • Inventory accounting including the impact on EBIT of LIFO and FIFO accounting choices (where relevant)
  • Accounts receivable and bad debts (identifying when companies are manipulating sales)
  • Accounts payable and accruals and the difference between them from a due diligence perspective
  • Other items including taxes payable, deferred revenue, and pre-paid items
  • Working capital and operating working capital and the cash impact of changes in operating working capital
  • Credit implications of working capital movements
  • Day ratios

Non-Current Assets

39

11

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Video minutes39

Excel Exercises11

  • Gross PP&E, accumulated depreciation, depreciation expense and net PP&E
  • Building a simple forecast of fixed assets
  • Establishing the age of a company’s fixed asset base
  • Finite, and infinite intangibles including goodwill
  • A review of key methods of accounting for financial investments
  • At fair value through the income statement
  • Available for sale
  • Associate (equity method) accounting

Capital Structure

50

14

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Video minutes50

Excel Exercises14

  • Debt issues and repurchases
  • Simple yield to maturity and all in cost calculations and understanding Original Issuer Discounts
  • Calculating net debt
  • Equity issuance and repurchases
  • The difference between authorized, issued and outstanding shares and multiple share classes
  • Other capital items: preference shares and convertible bonds
  • Leverage ratios
  • Debt liability maturity analysis

Cash Flow Statements

25

3

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Video minutes25

Excel Exercises3

  • Understanding how to categorize cash flows between operating, investing, and financing
  • Deriving a cash flow statement from two balance sheets and an income statement
  • Deriving a balance sheet from a cash flow statement and an income statement
  • Different cash flow statement presentations

Equity Method Investments

9

5

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Video minutes9

Excel Exercises5

  • What are equity method investments?
    • Equity affiliates/associates
    • Joint ventures
  • Equity method accounting
    • Income statement
    • Balance sheet
    • Cash flow statement
    • Financial statement integration

Intro to Full Consolidation

68

21

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Video minutes68

Excel Exercises21

  • M&A accounting overview
  • Balance sheet consolidation
  • Sources and uses of funds
  • Goodwill calculation
  • Income statement consolidation
  • Non controlling interests – NCI

The Modeler

4.7 STARS

Star Rating
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About

Financial modeling is one of the most useful skills in the world of finance. Knowing how to build models quickly and error-free is critical for the decisions and recommendations that they underpin. Our online financial modeling course provides the perfect introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

Completion time

9.5 Hours

Level

Skills Certificate

About

Financial modeling is one of the most useful skills in the world of finance. Knowing how to build models quickly and error-free is critical for the decisions and recommendations that they underpin. Our online financial modeling course provides the perfect introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

Completion time

9.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Introduction to Modeling

63

13

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Video minutes63

Excel Exercises13

  • Key settings
  • Formatting and layout standards
  • Building a simple income statement and balance sheet model, on one sheet, then across sheets
  • Balancing the balance sheet using the cash flow statement
  • Preparing the model for handover
  • Key formatting and putting the output into a pitch book

Three Statement Modeling with Iterations

59

15

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Video minutes59

Excel Exercises15

  • Income statement construction and highlighting key numbers
  • Calculation schedules (PP&E, retained earnings, operating working capital, and debt)
  • Balancing the balance sheet with a cash sweep
  • Calculating interest using average balances
  • Circular references and iterations
  • Working with a circular reference switch
  • Preparing the model for handover
  • Key formatting and putting the output into a pitch book

Three Statement Model Editing

44

0

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Video minutes44

Excel Exercises0

  • Steps before editing
  • Inserting a new item
  • Removing an old item
  • After editing
  • Relevant keyboard shortcut keys

Building a Model with Cash Sweep

62

17

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Video minutes62

Excel Exercises17

  • Why banks want to be repaid early
  • Cash sweep mechanisms
  • How to model cash sweeps
  • Building a three statement model with a cash sweep

Checking a Model for Integrity and Errors

36

11

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Video minutes36

Excel Exercises11

  • Top ten errors
  • Auditing and error checking toolkit
  • Checking your own model
  • Checking someone else’s model

The Valuer

4.6 STARS

Star Rating
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About

Learn how and when to utilize key valuation methodologies and their supporting calculations.

Completion time

12 Hours

Level

Skills Certificate

About

Learn how and when to utilize key valuation methodologies and their supporting calculations.

Completion time

12 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Equity to Enterprise Value Bridge

28

9

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Video minutes28

Excel Exercises9

  • Calculating equity value
  • Calculating enterprise value
  • Non-core items, debt equivalent items, and non-controlling interests
  • Calculating simple multiples
  • Illustrating the impact of leverage
  • Understand how growth rates, returns and multiples interrelate

Trading Comparables

69

17

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Video minutes69

Excel Exercises17

  • Review choosing a comparable set of companies
  • Calculating enterprise value
  • Calculating LTM EBITDA and EBIT
  • Forward multiples and issues with consensus data
  • Understanding which operational ratios are important for the analysis

Transaction Comparables

33

11

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Video minutes33

Excel Exercises11

  • Reviewing data sources
  • Understanding different deal contexts
  • Calculating enterprise value and LTM EBITDA
  • Calculating premiums paid based on offer prices where appropriate
  • Calculating the synergies from the transactions as a % of target sales

WACC Analysis

30

8

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Video minutes30

Excel Exercises8

  • Capital Asset Pricing Model
  • Calculating the WACC for the peer group
  • Interpreting the results
  • Establish a reasonable cost of capital for the target company
  • WACC approach

Discounted Cash Flow Valuation

50

14

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Video minutes50

Excel Exercises14

  • Calculating free cash flows
  • Understanding how the operational ratios should develop over the financial forecast
  • Calculating the steady state and making relevant adjustments to the steady state cash flows
  • Making reasonable assumptions for long-term growth rates
  • Discounting to a deal date
  • Converting the enterprise value into an implied share price, making relevant adjustments for share options and restricted stock units

Pulling the Analysis Together

43

13

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Video minutes43

Excel Exercises13

  • Reviewing different valuation methods
  • Preparing valuation ranges for each valuation method
  • Summarizing the valuation ranges and interpreting the results

Get Certification Recognized on Wall Street

Upgrade your résumé with certification recognized by the top 4 investment banks.

The Private Equity Associate is made up of 6 online courses. Pass each one to unlock your micro-degree. Certification can easily be added to LinkedIn, demonstrating your achievement which will be recognized by the most prestigious firms on Wall Street.

THIS MICRO-DEGREE HAS BEEN APPROVED BY

Colin Evans

Managing Director at J.P. Morgan

Colin Evans is a Managing Director at J.P. Morgan and leads the financial institutions coverage team globally for Corporate Banking

Dr. Ken Lee

Professorial Lecturer

Ex-Barclays Capital, Head of European Equity, Associate Professorial Lecturer at LSE, and Associate Instructor

Norman E Toy

Senior Lecturer

Ex-J.P.Morgan training consultant, Senior Lecturer at Mailman School of Public Health at Columbia in Advanced Healthcare Finance

Dr. Bridget Lyons

Professor of Finance

Professor of Finance at the Jack Welch College of Business at Sacred Heart University and Associate Instructor

LOOKING FOR A JOB AT A TOP FIRM?

We can pass successful candidate details to recruiters at the most prestigious financial institutions. Make sure you opt-in when submitting your feedback after completing your course.

Our Alumni

DEMONSTRATE YOU'RE AS GOOD AS THE BEST

By completing this course, you will be able to join our prestigious alumni on LinkedIn alongside hires at the top 4 investment banks. After becoming a member of this elite community, you can unlock exclusive benefits such as course discounts and more.

testimonials

what our students say

Individuals

Julian Santibanez

The Accountant

The Accountant package offered by Financial Edge is a stepping stone at understanding the logic behind investment banking operations.

Corporate clients

Summer Intern 2020

The Modeler

The Modeler by Financial Edge gives the student an opportunity to learn hands-on experience in financial modeling. From short cuts and revision techniques to Three Model Statement creation. Certainly an insightful experience.

View more

Frequently Asked Questions

What tech do I need?

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Access your course across desktop, laptop, tablet or phone; either via our web portal or the dedicated mobile app. While we have optimized our video quality and size, we recommend a broadband connection to enable uninterrupted video playback. A PDF reader and spreadsheet application are required to open the supporting resources.

Is it right for me?

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The PE Associate covers both the fundamentals of accounting, modeling and valuation, as well as the specific tools needed to excel as a junior in private equity. Whether you’re a student, management consultant or investment banker looking to break into the industry, this is the perfect course for you.

Are Financial Edge's courses credible?

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The 4 leading investment banks, as rated by the FT, hire us to train their incoming analysts. If you are looking to join the best analysts in the world, why not challenge yourself with the same content and certification with the same Wall Street instructors ready to answer your questions.

Will this course help me get a job in private equity?

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Absolutely. Develop practical skills your can use to impress at interviews, whether you’re looking to break into private equity or change roles. Take advantage of our recruiter service to boost your chances.

How long do I have to complete the courses?

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We are delighted to announce that we now offer lifetime access on all online courses! Fit studying around your schedule. Learn at your own pace with on-demand video, practical examples to download and expert instructor support.

Are there any hidden costs?

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No. Everything you need to earn your micro-degree is included, from instructor-led videos and Excel exercises to the exam.

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The Modeler

Our online financial modeling course provides the perfect introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

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