Cover; Front Matter; Half-title; Title page; Copyright information; Table of contents; Preface; Sections 1-5; Introduction to Private Equity Finance; Structure of Private Equity Finance; Introduction to Private Equity; Leveraged Buyouts; Competition for LBOs and Corporate Control; Private Equity Investors; Life Cycle of Investment; Valuation; Debt Financing; A Brief History of the Private Equity Industry; Notes; Private Equity Finance Vignettes: 2016; Founder's Battle; The New Opportunities for Limited Partners; Have It Your Way; Safeway; Notes; Section 1 Deal Sourcing and Evaluation
Calculating Capital Cash FlowsCalculating the Expected Asset Return; Capital Cash Flow Valuation; The Relation Between Capital Cash Flow and Free Cash Flow Valuation; Applications; Note; Chapter 1.3 RJR Nabisco; Company Background; The Management Group Bid; The KKR Bid; The Auction; The Bids; Notes; Chapter 1.4 HCA, Inc. (A); Background on HCA; The Proposed Buyout; Recent Performance; Management Projections; Premium; Valuation Analysis; Notes; Chapter 1.5 HCA, Inc. (B); Overview; Benefits to HCA Shareholders; Bondholders; Hospitals, Hospital Players & Communities We Serve
Chapter 1.1 A Note on Valuation in Private EquityIntroduction; Discounted Cash Flow Valuation: Cash Flows; Valuing Cash Flows with the CCF Method; Discount Rates; Some Thoughts about Discount Rates; Weighted Average Cost of Capital (WACC); LBO Valuation Models; Multiples Valuation Methodology; Recommendation; Appendix A: Valuation Example Using CCF and WACC; Pro Formas; Calculating Free Cash Flows; Discount Rate; Terminal Value; Present Value; Notes; References; Chapter 1.2 A Note on Capital Cash Flow Valuation; Introduction; Mechanics of Capital Cash Flow Valuation
Choosing the Equity Risk PremiumCalculating a Domestic Currency Valuation from Foreign Currency Cash Flows; Approach 1: Calculate foreign currency valuation and then convert into domestic currency; Approach 2: Convert cash flows into domestic currency and then calculate valuation; Notes; Chapter 1.9 The Abraaj Group and the Acibadem Healthcare Investment (A); Background: Turkey; Foundation of the Republic; Opening up of the Economy; Coalition Governments and Crises; Turkey Is on the Rise Again with a Stable Government; Private Equity in Turkey; Initial Attempts; The Crisis Period; Market Boom
Operating ImplicationsGovernance; Notes; Chapter 1.6 Summit Partners-The FleetCor Investment (A); Background: Summit Partners; FleetCor; The Proposed Transaction; The Partners Meeting; Notes; Chapter 1.7 Summit Partners-The FleetCor Investment (C); Note; Chapter 1.8 Private Equity Valuation in Emerging Markets; The Additional Complexities of Investing in Emerging Markets; Accounting for Diversifiable Firm- and Country-Specific Risks in Valuations; Calculating the Appropriate Discount Rate when Systematic Risk Differs; Choosing the Risk Free Rate; Choosing the Beta
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Private Equity' explores the deal making and investment strategies of private equity investors with an analytical framework that focuses on value-add.