Wall Street Training: Distressed Investing Overview & Distressed Financial Modeling (Ended)
Learn how to model and value distressed companies and securities undergoing restructuring or bankruptcy process. First, appreciate and understand the historical perspective and context of the distressed market. Then, explore various opportunities in distressed investing from securities types to investment strategies. Properly identify and isolate the true sources and drivers of returns from supply & demand to operational changes to market rebound to recapitalizations. Quantify and comprehend the dramatic changes to a distressed firm's capital structure and the implications on the valuation process and realignment of economics. Understand the reorganization and bankruptcy process, including DIP (debtor-in-possession) financing, Section 363 sales (stalking horse), Chapter 11 reorganization, and Chapter 7 liquidation. Fully comprehend the key critical covenants required involved in distressed securities as well as the entire turnaround & restructuring process by identifying key parameters for successful business plan implementation. Wrap up by quantifying valuation impact by evaluating a basic distressed sensitivity financial model.
- Understand distressed investing, different investment strategies & valuation and bankruptcy process
- Comprehend capital structure pre- and post-petition, significant of identifying fulcrum security
- Comprehend the complexities and nuances involved with distressed analysis
- Incorporate detailed valuation sensitivity to identify key value drivers in a distressed situation
Distressed Investing Overview
- Various definitions of distressed and causes of distressed securities
- Understanding different securities types to invest in based on investment strategy
Investment Strategies & Valuation
- Understanding and taking advantage of capital structure arbitrage opportunities
- DIP (Debtor-In-Possession) financing and the controversial roll-up DIP
- Identifying all-important fulcrum security and impact on valuation and returns
Bankruptcy: Legal Aspects & Chapter 11
- Brief overview to Chapter 11 - Reorganization Process and impact on distressed investing in US
- Section 363 sales & stalking horse bidder's impact on determining success of Chapter 11 process
Distressed Financial Modeling
- Summarize pre-petition capital structure of distressed situation & determine normalized valuation
- Construct standalone Income Statement project of distressed company
- Layer on various restructuring and turnaround scenarios
- Evaluate & analyze decision to restructure and understand financial implications on valuation
- Construct super-dynamic and flexible model to automate new vs. old cash flow capital structure
- Construct robust sensitivity analysis to determine ultimate recovery to capital structure classes
- Sensitize distressed model based on leverage, valuation, new pro forma capital structure
- Analyze what constitutes a "bad" deal and its implications for the distressed investor
- Understand and appreciate various financial stakeholders and inherent conflicts of interest
- Quantify and evaluate the importance of determining the right fulcrum security
Prerequisite: Intermediate proficiency using Excel. To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program. Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs with Office 2008 will not be as effective. Laptops will not be provided.
Members - $495
Non-Members - $595
Student-Members - $125 (Limited seats available)
*Function tickets cannot be used for this event
CFA Institute Qualified Activity: Eligible for 7 credit hours
Attire: Business Casual
Menu: Lunch Buffet (Vegetarian choices will be available)
Registration: Register online below
Hosted by: Education Advisory Group
8:30 am - 9:00 am - Registration & check-in
9:00 am - 12:30 pm - Morning Session: Distressed Investing Overview
12:30 pm - 1:30 pm - Lunch break
1:30 pm - 5:00 pm - Afternoon Session: Distressed Financial Modeling
Instructor: Hamilton Lin, CFA
Hamilton Lin, CFA, Founder & CEO of Wall St. Training, has a broad background in investment banking and mergers and acquisitions. His responsibilities have included analyzing, structuring and negotiating mergers & acquisitions. Mr. Lin custom-builds and develops all of the financial and merger models that he uses which have become corporate and departmental standards. Mr. Lin has closed over two dozen transactions and has diverse industry experience ranging from oil & gas to insurance to asset management and related sectors.
About Wall St. Training:
Wall Street Training (WST) is a provider of training services, specializing in investment banking and mergers acquisitions; equity and fixed-income research; asset and investment management; credit analysis; private equity and high-yield LBO modeling, and Chartered Financial Analyst examination preparation to institutional and individual customers worldwide.
*Special Notes Regarding Fees:
Student rate only available to students approved as a Student-Member of CFA Chicago for 2015-2016. Credit card is required to guarantee ALL reservations. No day-of-event pre-registrations accepted (on-site only, if applicable and space available). There is a $10 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00 pm, June 3.
Members of any CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.
CFA Institute CE Qualified Activity
This program qualifies for credit under the guidelines for the CFA Institute Professional Development Program.
Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.