Leveraged buyout (LBO) modeling is used widely by investment banks and private equity firms and is often part of a finance interview. In this course, you will learn how to build a real, complex LBO model from scratch. You will start by learning about basic LBO concepts, typical deal structures, and current industry dynamics. You will then build a full LBO model from scratch with stock vs asset sale toggles, multiple tranches of debt, PIK toggles, and sophisticated deferred tax and depreciation schedules. The course concludes with advanced topics such as purchase price allocation and deferred taxes in acquisitions.
Reviewing Our LBO Model
Distribution Waterfall Exercise
Leveraged Buyout Modeling Course Notes
What You Will Learn
- Learn how an LBO / Recapitalization works given today’s benchmarks and credit environment
- Develop an “industrial strength” LBO model driven off a fully integrated 3 statement model
- Integrate switches for LBO vs. Recap accounting treatment
- Toggle between tax and valuation implications of asset deals, (338(h)(10) election, and stock sale
- Learn best practices for modeling Senior, Revolver, Sub, Mezzanine and Preferred stock
- Add a PIK toggle to various debt tranches
- Integrate cash sweep functionality into term loan debt tranches
- Build the Sources & Uses (S&U) schedule – the correct way
- Analyze & sensitize IRRs for sponsors, management, preferreds, and mezzanine
- Modeling complex accounting adjustments including deferred taxes, fair value write ups, and goodwill
- Attach a DCF valuation to your LBO
- Use as a reference to get ahead on the job and in your career
- Gain the confidence to ace your private equity interviews
Advanced LBO Modeling Highlights
Step-By-Step Modeling Instruction
Wall Street Prep’s Advanced LBO Modeling Self Study Program teaches students how to build, analyze, and interpret LBO models and transactions in a step-by-step fashion using videos, readings, ready-to-use LBO models and exercises using a real case study.
Real World “On the Job” Investment Banking Training
The Advanced LBO Modeling Program bridges the gap between academics and the real world to equip students with the practical financial skill set that they will need in private equity and leveraged finance. Students learn LBO modeling in Excel from scratch using intuitive, step-by-step instruction and model templates the way it is actually performed in private equity. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build complex LBO model the way they would on the job.
Upon enrollment, students gain 24-month free access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates.
Boost Add-In for Excel
Free Access to Boost, an all-in-one suite of time-saving tools designed for people who build financial models in Excel. Key features include: Easily assign custom shortcuts to all of Boost’s features; Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool; A fully functioning classic 2003 menu (in ’07 and ’10 Excel); And much more!
- Accounting: The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement). Students with no prior background in Accounting should enroll in the Accounting Refresher Supplement in addition to the Self Study Program (option available at check-out).
- Corporate Finance: Although general exposure to corporate finance is helpful, it is not required.
- Excel: Basic introductory Excel knowledge is highly recommended. Students with limited or no experience using Excel should enroll in the Excel Crash Course Supplement in addition to the Self Study Program (option available at check-out).