Facilitator Guide

Understanding Your Private Equity Client’s Business

Facilitator Guide

Understanding Your Private Equity Client’s Business

Topic: Private Equity
Duration: 1 hr
Format: Remote or in person

What’s covered

Identifying potential target companies
Internal Rate of Return
Multiple on Invested Capital
EBITDA Multiple
Creating value in portfolio companies
Divestment

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/understanding-your-private-equity-client-s-business/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Understanding Your Private Equity Client’s Business

A framework for understanding your private equity client’s business in order to help protect their interests. This course discusses what PE clients are concerned with during three stages of an investment—the acquisition phase, the holding period, and the divestment phase. It looks at valuing a target, maximizing returns, operational improvements, and exit strategies.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What makes a company an attractive target to a PE buyer?
What is the difference between the IRR metric and the MOIC metric?
How does the EBITDA multiple work when calculating purchase price?
How does a PE fund use control and oversight to increase the value of its portfolio companies?
What are some common ways a PE fund can exit its investment?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Private Equity topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.