Welcome to the Wall Street Prep Quick Lesson Series!
In this lesson, we'll build a leveraged buyout (LBO) model, given some operating and valuation assumptions, in Excel. The goal of this lesson is to show you that an LBO model is actually a very simple transaction at its core, and is quite similar to the mechanics involved when purchasing a home.
Instructor's Note: In the comments section, in front of row #48 (LBO debt, beginning of period), the note is written as "LTM Debt * LBO Debt Capacity." It should instead be labeled as "LTM EBITDA * LBO Debt Capacity."
Building a Simple LBO Model - Video 1 of 3
Building a Simple LBO Model - Video 2 of 3
Building a Simple LBO Model - Video 3 of 3
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The Wall Street Prep Quicklesson Series
7 Free Financial Modeling Lessons
Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.