Tamara Sakovska - The Private Equity Toolkit

1 Cover

2 Title Page THE PRIVATE EQUITY TOOLKIT A STEP-BY-STEP GUIDE TO GETTING DEALS DONE FROM SOURCING TO EXIT TAMARA SAKOVSKA

3 Copyright

4 Dedication

5 Preface Chapter 1: First Thoughts on Deal Sourcing Chapter 2: Thematic Deal Sourcing Chapter 3: Opportunistic Deal Sourcing Chapter 4: Deal Selection: Eliminating the Wrong Deal Chapter 5: Deal Selection: Identifying the Right Deal Chapter 6: Assessing the Top Management Team Chapter 7: Analyzing the Business Plan Chapter 8: Valuation Chapter 9: Deal Structuring Chapter 10: Deal Execution: Transaction Process and Due Diligence Chapter 11: Deal Execution: Legal Documentation Chapter 12: Adding Value Through Active Ownership Chapter 13: Exit Strategies and Deal Monetization

6 Acknowledgments

7 About the Author

8 1 First Thoughts on Deal Sourcing Introduction to Deal Sourcing Deal Sourcing Strategies Assessment of Your Current Deal Sourcing Capabilities Where Do Deals Come From?

9 2 Thematic Deal Sourcing The Benefits of Thematic Deal Sourcing Thematic Deal Sourcing: ICEBERG Roadmap™ 1. Identify a sector theme and build aninvestment thesis 2. Conduct an in-depth analysis of the selected industry 3. Elaborate on your knowledge by mapping out key players operating in the industry 4. Build a network of experts and company executives to fill knowledge gaps 5. Establish a long list of potential deal targets and initiate coverage of these companies 6. Rank the companies by attractiveness and approach two or three potential deal targets at a time 7. Go visit companies to convert deal ideas into real transactions Notes

10 3 Opportunistic Deal Sourcing Developing an Edge in Opportunistic Deal Sourcing DATABASE Roadmap™ for Opportunistic Deal Sourcing Opportunistic Deal Sourcing: DATABASE Roadmap™ 1. Develop a clear point of view about what kind of deals your fund wants to target 2. Articulate a concise and memorable message about your mandate 3. Team up with intermediaries who consistently add value 4. Add new relevant connections to your network 5. Build a strong brand 6. Apply creative thinking to supplement your opportunistic deal flow 7. Set-up a dedicated digital platform to manage your deal origination workflows 8. Establish a business development team fully devoted to deal sourcing Notes

11 4 Deal Selection—Eliminating the Wrong Deal Introduction to the Deal Selection Process Eliminating the Wrong Deal Through Negative Screening Notes

12 5 Deal Selection—Identifying the Right Deal Positive Screening Framework Notes

13 6 Assessing the Top Management Team Management Practices in Private Equity What Makes a Great CEO What Makes a Great Private Equity CEO Management Assessment Notes

14 7 Analyzing the Business Plan Introduction to Business Plan Analysis Typical Issues in Business Plans Business Plan Analysis Framework 1. What does this company do? Does it need to exist? What customer need does it serve? 2. What macro factors are likely to affect this business during my investment horizon? 3. What do I need to know about the industry to put the company's business plan into context? 4. What are the key building blocks of this company's business model? 5. How is this company positioned at present compared to its competitors? 6. What does the company do well and what does it do badly? 7. How has this business done historically? 8. What 5-year projections am I underwriting as an investment base case? What are the key sources of value creation during my investment horizon? 9. What are the risks? What is my downside investment case? 10. Does my investment case add up? Notes

15 8 Valuation Value, Price and Cash Valuation Metrics Valuation Methods From Valuation to Pricing Notes

16 9 Deal Structuring Capital Structure Management Incentive Plan Advanced Deal Structures Notes

17 10 Deal Execution: Transaction Process and Due Diligence Transaction Process Due Diligence: Introduction The Ten Principles of a Good Due Diligence Process Due Diligence: Key Workstreams Notes

18 11 Deal Execution: Legal Documentation Notes

19 12 Adding Value Through Active Ownership Active Ownership: Value Creation Strategy From Paper to Action: 100-Day Plan Governance and Reporting When the Deal Goes South Notes

20 13 Exit Strategies and Deal Monetization Exiting a Minority Transaction Exiting a Majority Transaction Exit Timing Conventional Exit Routes IPO Strategic Sale Sponsor-to-Sponsor Buyout Alternative Deal Monetization Strategies The Finishing Touch: Ensuring a Successful Exit Notes

21 References Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13

22 Index

23 End User License Agreement

1 Cover Page

2 Table of Contents

3 Title Page

4 Copyright

5 Dedication

6 Preface

7 Acknowledgments

8 About the Author

9 Begin Reading

10 References

11 Index

12 End User License Agreement

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