LBO Modeling

Course Start Date: 12th November 2023

Training Duration: 4 Days

Practical application through exercises:

  • Excel Exercises
  • Case Studies

Learning Outcomes


Understand the characteristics of a good LBO candidate


Understand design and develop structure for a LBO model


Learn to forecast financial statements for the LBO target

Prepare flexible debt schedules for different sources of debt


Understand and prepare source of value creation in a LBO transaction


Perform scenario analysis and develop the LBO dashboard

Course Outlines

  What is LBO and what are the key characteristics of a good LBO candidate

  • Introduction to LBO modelling
  • Model design and structure for the LBO case
  • Forecasting the operating cash flows of the LBO target
  • Target’s enterprise value and uses of funds
  • Various sources of funds

Senior Debt (Term Loan A, B, etc.)

High yield, Mezzanine, PIK and Shareholder loan

Revolving line of credit

  • Preparing flexible debt and interest repayment schedules for different sources of funding
  • Incorporating cash sweep in debt schedules and avoiding circularity
  • Calculating exit IRR and MOIC for the GP and 
  • Analysing the various sources of value creation – Revenue Growth, Margin Expansion, Multiple Expansion and Deleveraging 
  • Scenario and Sensitivity Analysis for analysing LBO

Case Study: Large global or regional LBO transaction