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overview
About The Course
Taking into account latest developments in shipping industry, this masterclass offers practical guidelines and actionable insights into M&A due diligence practices, asset valuation and negotiation strategies. Applicable to all sectors of shipping, attendees will examine numerous real-world case studies, pitfalls and considerations to help you mitigate legal & financial exposure.
Throughout 4 modules, you will gain latest updates on consolidation trends, the global shipping & ship financing market, M&A and vessel transaction activities across sectors; key legal, operational & financial due diligence best practices and the S&P process & formation of contracts.
Key Learning Outcomes & Case Studies Include
- The global shipping market: Key updates on consolidation and M&A activities
- Key insights on company valuations M&A Due diligence – Legal, Accounting & Financial breakouts
- Risk assessment & mitigation in shipping M&A Transactions
- The S&P transaction process of second-hand and newbuilding vessels
- Financing for shipping projects – the loans, alternative sources of finance and negotiation
- Formation of contracts in M&A and ship funding projects
- Potential contentious aspects in M&As and vessel sale & purchase
- Updates on ship funding market, sale & purchase and vessel building across sectors
Who Will Benefit
- Finance and Accounting Managers
- Risk Management
- Credit Managers
- Legal counsel
- Audit
- Captains
- Project Directors
- Business and Strategy Managers
Live Online Training
Learn Anywhere, Learn Anytime
Catering to meet all your learning needs:
- Get high quality practical training from our expert instructors
- From Face To Face, Online and Blended Learning, get a superior solution for your learning needs
- Learn live online in an interactive environment
- Invest in yourself. Invest in your team.
Register today for our Live Online Training courses and find out how they can help you transform the way you work. Contact one of our training consultants on [email protected] to find out more.
Testimonials
“Trainer is knowledgeable and enables attendees to understand how shipowners think regarding their investment strategy. The programme helps enlightens the risk and return in shipping business, and the business updates across regions. Good case studies on portfolio risk management and industry loans”
Budirahardio, CIMB Niaga Bank
“Knowledgeable presenter, provided up-to-date industry insights in the ship finance market through relevant materials and examples. I can apply financial risk management strategies in investment evaluations”
Gan Xiu Ling, Neptune Orient Lines
Singapore MCF Grant
You may be eligible for the Singapore Maritime Cluster Fund (MCF) Grant for up to 50% of the total course fee. Please contact Sushil Kunwar on +65 6989 6614 or email [email protected] for more information and eligibility criteria.
Agenda
MODULE 1
SHIPPING CONSOLIDATION OVERVIEW
- Global shipping market 2020 updates
- Economic activity, world trade & seaborne demand post Covid-19
- M&A trends – Sectoral analyses
- Container, dry bulk, tankers, chemical carriers, ro-ro
- New entrants and consolidations
- Demand factors, future opportunities and financing implications
- Sources of financing
- Characteristics of the various institutions providing or arranging finance
M&A – DUE DILIGENCE REVIEW
- Legal due diligence practices
- Accounting & financial
- Commercial & operational
- Environmental compliance
- Technology and intellectual properties
M&A ACCOUNTING/FINANCIAL DUE DILIGENCE
- Quality of earnings consolidations, EBITDA normalisation
- Working capital targets and cashflow consolidations
- Tax due diligence, structuring, and planning
- Cashflow impacts of tax issues
- Operating expenses and financial trends
- Working capital and other purchase price adjustment mechanisms
- Treatment of debt and other liabilities
- Guaranties, loans, and credit agreements
- Deal structure, valuation & integration
MODULE 2
CONSOLIDATION AND M&A LEGAL DUE DILIGENCE
- Litigation claims
- Non-competition
- Antitrust diligence
- Definitive agreements
- Regulatory issues: exposures and compliance
- Insurance
ASSET VALUATIONS
- Asset-based valuation
- Capitalisation of earnings
- Discounted cash flow
- Market approach to value
- Benchmark statistics
- Case Studies:
- Ship owners & ship operators
- Terminal operators
- Agencies and tag/barge owners, operators
M&A RISK ASSESSMENT AND MITIGATION
- Target decision criteria
- Deal evaluation related risks
- Cross-border M&A risks
- International & national laws
- Reliability of the target’s financial information
- Potential contentious aspects on due diligence and consolidation
MODULE 3
VESSEL SALE & PURCHASE 2020 AND SHIP FUNDING MARKET
- The sale and purchase market post-2020
- Demand factors, future opportunities and financing implications
- Fleet supply vs demand outlooks
- Vessel valuations
- Outlook for new building projects
- Options for funding merchant ships
- Second-hand vs newbuilding in ship finance
- Changing requirements of lenders and availability of finance in the current market
THE S&P TRANSACTION PROCESS OF SECOND-HAND AND NEWBUILDING VESSELS
- Factors affecting newbuilding vs secondhand vessels’ prices
- Requirements, negotiations, delivery & inspection
- Vessel circulars, sellers’ ideas, buyers’ ideas and requirements
- The role of the S&P broker
- Offer, counter-offer and negotiations
- Confidentiality issue
- Time limit of offer, price, subjects, delivery and other conditions
- Memorandum of agreement deposit
- Drydocking and inspection
- Delivery and transfer of asset
- The payment in tranches method
- The role of the refund guarantee
- The role of Export/import banks
FINANCING A SHIPPING PROJECT
- Commercial loan finance
- The portfolios of the largest banks in shipping finance today – future of Asian banks
- Common requirements: Shipowners vs Banks
- Financial proposal assessment
- Financiers’ limitations on the provision of finance
- Risks and rewards for banks involved in ship finance
- Ship covenants
- The importance of documentation, covenants and security in ship finance
- Ways for a shipping finance bank to secure itself during the period of a loan
MODULE 4
ALTERNATIVE SOURCES OF FINANCE FOR SHIP PURCHASE
- Mezzanine finance or leasing structures as alternative sources of finance and why?
- Public listing or bond offer
- Investors’ perception of shipping bond and stock offerings
- Advantages and disadvantages of each type of finance as well as
- Future potential
FINANCIAL RISK MANAGEMENT IN SHIPPING
- Portfolio risk management
- Measuring risk & portfolio risk
- Beta and unique risk
- Diversification and Markowitz
- Portfolio theory
- Risk and return relationship
- Traditional diversification strategies shortcomings – cointegration
- Shipping application
- Financial Risk Management – Value at risk and applications to shipping
- Financial futures and options
- Options shipowners and charterers have to hedge their positions
- Different futures and forward
- contracts in shipping
- Ways and methods to price a financial option
- Shortcomings of traditional discounted cash flow (DCF) models
- Theory and the reasons behind Real
- Option Theory development
- Applying Real Option Theory and
- Value At Risk Theory to financial decision making in shipping
POTENTIAL CONTENTIOUS ASPECTS ON SHIP SALE & PURCHASE
Analysis and discussion of the various legal aspects and cases in shipping assets’ M&A; ship sale and purchase for new, secondhand vessels and vessels under construction
- Arbitration provisions of sale contracts, tribunal appointment
- Types of disputes in arbitration
- Mediation to disputes
- Case law updates
On-site & in-house training
Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?
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