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 Advanced with interactive Excel modeling exercises in our LBO Modeling module.
This hands-on modeling exercise helps you master Build Leveraged Buyout Model Advanced through real-world Excel practice and financial modeling techniques.
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