Build Leveraged Buyout Model 1

This exercise guides you through building a basic LBO model.A Leveraged Buyout (LBO) model is a valuation methodology ultimately measures the Internal Rate of Return (IRR) from purchasing a company funded with cash (investor equity) and a significant amount of debt.Building a LBO model involves these steps:Input Historical and Projected Financial Information: This includes the target company's balance sheet, income statement and cashflow statement data.Create Debt Schedule: Detailing the outstanding debt balance and how it will be paid off over the LBO period.Calculate Free Cash Flow: This will facilitate in repayment of the debt and provide returns to the equity holders.

Practice Build Leveraged Buyout Model 1 with interactive Excel modeling exercises in our LBO Modeling module.

This hands-on modeling exercise helps you master Build Leveraged Buyout Model 1 through real-world Excel practice and financial modeling techniques.