What is a Short-Form LBO Model?
The following Short-Form LBO Model tutorial will walk through building a simple LBO model step-by-step in Excel, with a template provided.
Throughout the tutorial, a baseline understanding of the theory behind leveraged buyouts (LBOs) will be assumed. But if a certain concept is unclear, additional recommended resources will be linked below each video.
The structure of our short-form LBO model tutorial is as follows:
- Purchase Price Assumptions [Part 1 of 4]
- Sources & Uses Table and Financial Forecast [Part 2 of 4]
- Cash Flow Statement and Debt Schedule [Part 3 of 4]
- Exit Assumptions and Returns Schedule [Part 4 of 4]
Short-Form LBO Model – Excel Template
Before we get started, fill out the form below to access the short-form LBO model that goes along with our four-part video series.
Purchase Price Assumptions [Part 1]
Introductory LBO Resources
Sources and Uses Table and Financial Forecast [Part 2]
LBO Capital Structure Basics Resources
- Private Equity Interview Questions
- EV/EBITDA
- Capital Structure
- Debt Financing Guide
- Senior Debt
- Corporate Bonds
- Floating Interest Rate
- Fixed Interest Rate
- Interest Tax Shield
- Sources and Uses of Funds
Cash Flow Statement (CFS) and Debt Schedule [Part 3]
Cash Flow Build and Debt Schedule Resources
Exit Assumptions and Returns Schedule [Part 4]
Returns Schedule (IRR and MOIC)
- Internal Rate of Return (IRR)
- Multiple of Money (MoM)
- XIRR Excel Function
- Multiple Expansion
- Ability-to-Pay (Affordability) Analysis
- Rule of 72
Private Equity Recruiting: LBO Modeling Tests
If you’re preparing for upcoming private equity interviews, review our set of free practice LBO modeling tests – as well as consider enrolling in our Private Equity Masterclass, the top private equity training program available in the market.