Private Equity Company Finances—A Director’s Introduction

The first video in this section will help you ask the right questions about the structure of the company on whose board you now serve or may serve in the future. The answer may affect the deal options available when it comes time to sell. PDA member Bob Hesselgesser then shares insights that will allow you to contribute to financial decision-making at board level. Finally, our expert panel demonstrates that while selling is always the end game, there are many ways to get to the deal table. It will take less than one hour to watch and learn from all three of these videos.

Learning Objectives:

• describe the high speed and high stakes of private equity decision-making and demonstrate the financial acumen and nous to be able to analyze, question and contribute to this area.
• recognize the myriad of corporate structures and unique financing and compensation arrangements and their impact on financial reporting, key financial metrics, such as EBITDA, and tax treatment;
• recognize the importance of cash flow management and liquidity, and the impact of failing a debt covenant, troubled debt restructuring, the entity’s ability to continue as a going concern and potential for bankruptcy proceedings; and
• detail exit strategy alternatives, including sale, roll-ups, M&A, etc.