About this course
Exit strategy is where private equity returns are made or lost. Modeling exit outcomes across trade sales, IPOs, and secondary LBO scenarios, and understanding the conditions that favor each, is core to PE deal evaluation and value-creation planning.
This course teaches participants how to evaluate and model PE exit strategies, analyze their impact on returns, and confidently assess which option is most suitable given current market conditions. The course is built on TTS's deep experience working with 19 of the top 25 PE firms.
By the end of the session, participants will be able to quantify exit outcomes and optimize decision-making around IRR and MOIC.
What you will learn
LBO Exit Overview
- Overview of current market conditions
- Description of the LBO Exit options: Trade Sale, IPO, and Secondary LBO
- Suitability of each LBO Exit option for different types of private equity investment
Trade Sale
- Valuation based on suitable comparable transactions
- Calculating exit multiples, LTM, NTM, with and without synergies
- Modeling exit fees and return analysis
IPO
- IPO Analysis: primary versus secondary issuance
- Debt capacity and refinancing as part of an IPO
- IPO trading comps analysis, including IPO discount
- Post-IPO financial forecasting
- Modeling equity sell-down following IPO
- Modeling exit fees and return analysis
Secondary LBO
- Modeling secondary LBO following the initial exit year, including new debt structure
- Calculating new purchase/sale price based on a target IRR of the new sponsor
- Modeling exit fees and returns analysis