Front cover of LBO Modeling manual in Premium Package

Build a robust LBO and recapitalization model in Excel. The module begins with an introduction to the dynamics of an LBO and a discussion of the qualitative motivations behind such transactions, major players, current financing environment, and industry benchmarks.

You will develop an understanding of leveraged financing, purchase and recapitalization accounting and the step-by-step allocation of purchase price. Typical exit strategies and return requirements are discussed and analyzed.

Build an integrated pro forma LBO projection model

• Using typical deal structures and current market metrics
• Build a dynamic Base/Best/Worst Case scenario toggles

Debt modeling

• Learn to integrate typical LBO debt structures, including secured, unsecured, mezzanine and PIK debt, convertible securities and equity sweeteners
• Build a revolving credit facility and cash sweep
• Model LBO Equity Structures

Equity modeling

• Integrate typical equity structure, including management Incentives and rollover, Preferred Stock, contingencies and earn-outs
• Build a dynamic Sources and Uses of Funds Schedule
• Modeling Goodwill, and various transactional adjustments
• Build a returns analysis capturing all providers of capital using XNPV and XIRR functions
• Error-proofing and integrity-checking an LBO model.
• Build sensitivity tables required for correct analysis of an LBO, including the construction of multiples, and IRR tables using both data tables and various sorting functions in Excel, including VLOOKUPS, OFFSET, CHOOSE, and INDEX.