Understanding banking, debt products, mergers and acquisitions
- Session 1: What do banks really do?
- Understanding banking products and the differences between them
- Anatomy of a bank
Group exercise. Navigating around a bank
- Overview of banking products
- Key jargon terms: demystified
- Where people fit
- Who can afford their own yacht?
- Understanding front, middle & back office roles
Group exercise. Identifying roles
- Making bank strategy work
- What examples do we have of strategy failure?
- What’s the route forward?
- Review: what are the risks that banks face?
- What caused the credit crisis?
- Session 2: Getting to grips with the business press
- Unpacking the financial pages
- How to know everything by reading 3-5 pages max
Exercise. Identifying deals/ identifying opportunities
- Session 3: Other financial institutions
- Fund management
- Private banking
- Hedge funds
- Private equity firms
- Major strategies and risks
- Session 4: Debt products
- Clear, simple and concise introduction to the different forms of lending
- Senior debt
Group exercise – understanding debt products. In front of you is some analysis conducted by a major investment bank. Based on what you see there, what has this analyst done wrong?
- You now know about senior debt products, what has the bank done wrong?
- High-yield debt
Group exercise – understanding mezzanine and subordinated debt products. Imagine you represent the senior lender and the finance director at your client wants to take on mezzanine finance to complete a deal. What are your concerns? What protections could you (reasonably) ask for?
- The client business has just told you they are now talking to a mezzanine provider. What should you be worried about?
- Asset based lending
- Project financing
- Understanding the nature of different financial instruments and risk profiles
- Drivers on debt holders
- Session 5: M&A and equity capital markets
- Why does M&A happen?
- Sources of synergies
- What would you be most sceptical about?
- Traps for the unwary
- What is a float?
- Overview of the process
- Key roles
Exercise – flotation as an exit route. You are a board representative for Bridgepoint Private Equity, sitting on the board of a company the private equity firm has invested in. It’s time to sell and the company is considering floating or selling to a trade buyer. What is Bridgepoint’s preferred route forward? What really happened?
- Course conclusion
- Key opportunities
- Major areas of commercial debate
- Recap on main learning points
Law CPD courses from training company FTA Ltd
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