Corporate & Investment Valuation

Transcription

1 Corporate & Investment Valuation For strategic decisions Andreas T. Angelopoulos oxfordchicagovaluation.com

2 When does valuation apply? Preparing a company for an IPO Analysing the performance of a public listed company Merging 2 companies Privatisations or public asset disposal programmes Selling off part of a business Acquiring a business Raising financing for project or infrastructure investments Restructuring a distress asset 2

3 What is important to know in valuing a company or investment? Understand the company s financial statements Analyse the business plan building operational model projections Analyse and forecast WC, Capex and R & D items Calculate the FCF - which FCF? What is EV and EqV Which are the various financing options The IRR driver for decisions as a company or fund 3

4 What are the main differences between corporate and investment valuation? Corporate valuation IPO Public listed Investment valuation Growth Capital LBO Distress Infrastructure As a Company? As a Fund? 4

5 Which are the main valuation methods to apply? Comparables Trading Transaction Company performance (public company) Discounted Cash Flow (DCF) IRR NPV APV VC/GC LBO Infrastructure 5

6 How can financing structures affect valuation? Debt Loans: senior, junior, second lien, mezzanine, PIK Bonds: senior secured bond, unsecured bond, PIK bond Quasi Equity Equity Shareholder loans, convertible bonds, preference shares Preferred ordinary shares, ordinary shares 6

7 Growth Capital what you need to know before you value an asset Capital increase or shareholder liquidity Pre money or Post money valuation Investment which % Quasi equity or equity Tax advantages on P & L or stronger FCF IRR exit when should I convert Management sweet equity or options Value creation drivers (graph) 7

8 LBO what you need to know before you value an asset Type quantum pricing - Debt versus Equity Who is paying the fees FCF refinancing Covenants Recapitalization through HY Exit IRR Management terms sweet equity or options Value creation drivers (graph) 8

9 Distress what you need to know before you value an asset Cash Flow or Balance Sheet issue Loan to own control or not? Value break & Recovery value Which valuation method Comps, DCF, LBO Going concern, Liquidation How restructuring can affect my valuation Covenants reset Debt buyback Equitization (debt to equity swap) New capital financing 9

10 Infrastructure what you need to know before you value an asset Greenfield project or infrastructure operating asset Project or Infrastructure finance Capital structure type of financing Debt Quasi equity & equity DSCR and covenants structure Dividends Asset sale IRR and Yield Exit pensions fund or PE fund? Value creation drivers (graph) 10

11 Lecturer Andreas T. Angelopoulos Andreas T. Angelopoulos has more than 22 years experience in private equity, entrepreneurship and engineering advising various funds, entrepreneurs or corporates in their investment plans in South East Europe. He worked with Englefield Capital leading their origination in South Europe and for Dresdner Kleinwort Benson s principal finance and venture capital division investing in USA and Europe. He started his finance career working for Commercial Capital, a member of Credit Agricole, investing in growth capital transactions in South Eastern Europe having worked before in the area of engineering (real estate and infrastructure) with Bechtel, Dames & Moore and Hochtief ABB J/V in USA and Europe. In 2012, Andreas joined the University of Oxford s Saïd Business School as an Executive Director of the Private Equity Institute. He founded the Oxford Chicago Valuation Programme (2013) and the Imperial College Private Equity & PEVCE Programme (4 courses with 40 banks & funds presenting cases in class, 2007). He is lecturing at the University of Oxford's Saïd Business School visiting as an Adjunct Professor The University of Chicago Booth School of Business in Chicago, Imperial College Business School in London, Skolkovo School of Management in Moscow and Luiss Business School in Rome, since Andreas holds an MBA from The University of Chicago Booth School of Business (sponsored by Dresdner Bank AG), a Master of Science from Columbia University School of Engineering & Applied Sciences in New York City (Gerondelis Scholar) and a graduate 5 year degree, Diploma in Civil Engineering (Structural Engineering & Computational Mechanics) from the University of Patras School of Engineering in Greece