Level II Knowledge Base Curriculum

The Level II Knowledge Base is good for 21.5 CPE credit hours, culminating in DealMaven's Certification in Advanced Financial Modeling. The course curriculum is outlined below.

  Part One: Understanding the Basics
  Chapter 1: Getting Started
  • The Leveraged Buyout: An Ideal Example of an Advanced Financial Transaction
    •   Chapter 2: LBO Fundamentals
  • Strategic vs. Financial Buyers
  • Acquirors, Targets, and the Role of Shell Corporations
  • Public vs. Private Equity Investing
  • Magnifying Risk and Return with Leverage
  • The Interest Expense Tax Shield
    •   Part Two: The Life Cycle of an LBO
      Chapter 3: LBO Financing
  • Sources of Financing: Bank Debt (Revolver & Term Loan), High Yield Bonds / Bridge Loan, Mezzanine (e.g., Preferred Stock), Common Stock
  • Parents and Subsidiaries
  • Holding Companies
  • The IRR Times Table
    •   Chapter 4: The LBO Process
  • The Pitch Process
  • Due Diligence
  • Friendly vs. Hostile Deals
  • Closing an LBO
  • Post-Deal Growth Strategies
  • Exit Strategies
    •   Chapter 5: LBO Fund Economics
  • The Basics of an LBO Fund
  • Fund Management Fees, Carried Interest, and Hurdle Rates
    •   Part Three: Acquisition Mechanics
      Chapter 6: Basic Purchase Accounting
  • Tax Basis
  • Stock vs. Asset Sale
  • GAAP Purchase Accounting
    •   Chapter 7: Modeling an LBO Transaction
  • Sources and Uses of Funds
  • Value at Purchase
  • D&A Changes
  • Income Taxes
  • Balance Sheet Assets
  • Excess to Allocate
  • Cash Flow Statement
  • Returns (Includes Building an IRR Variance Table)
    •   Chapter 8: Introduction to M&A Modeling
  • Sources and Uses of Funds
  • Allocation of Purchase Price
  • Calculating Accretive Dilutive Impact on EPS
  • Summary Deal Impact (LTM EBITDA, Pro-Forma Net Debt, Net Debt / EBITDA Multiple, Ownership Percentages)