background
Welcome to Wall Street Prep! Use code at checkout for 15% off.
Wall Street Prep

Simple LBO Model

Guide to Understanding the Simple LBO Model

Learn Online Now

[toc]

Simple LBO Model: Video Tutorial

In this video tutorial, we’ll build a leveraged buyout (LBO) model, given some operating and valuation assumptions, in Excel.

The goal of this video is to show you that an LBO model is actually a very simple transaction at its core – and quite similar to the mechanics involved when purchasing a home.

Simple LBO Model – Excel Template

Use the form below to download the Excel template that goes along with the simple LBO model video series.

By submitting this form, you consent to receive email from Wall Street Prep and agree to our terms of use and privacy policy.

Submitting...

Building a Simple LBO Model (Video 1 of 3)

Building a Simple LBO Model (Video 2 of 3)

Building a Simple LBO Model (Video 3 of 3)

 

Additional LBO Resources

We hope you found this video tutorial. If these videos made sense, you have a basic foundation for delving deeper into the more complicated mechanics of an LBO Model.

If you are preparing for private equity interviews, below are additional tutorials to show you exactly how private equity firms test your LBO knowledge via interview questions and modeling tests:

  1. Top 25 Private Equity Interview Questions – Baseline knowledge around the technical aspects you’ll be expected to know in PE interviews.
  2. Paper LBO Test – Given at earlier rounds, you’ll get a pen and paper (no calculator) and 5–10 minutes
  3. Basic LBO Modeling Test – You’re given a laptop, simple instructions and ~30 minutes – this serves as a slightly more robust early-round screen than the Paper LBO
  4. Standard LBO Modeling Test – You’re given a laptop and 1–2 hours. This is the most common LBO Modeling Test given at lower-middle market and middle-market PE firms.
  5. Advanced LBO Modeling Test – You’re given a Laptop, a 5-15 page packet of financial data, and 3–4 hours. You’re most likely to see this from upper-middle market firms or mega-funds in the later rounds of the interview process.
Master LBO Modeling Our Advanced LBO Modeling course will teach you how to build a comprehensive LBO model and give you the confidence to ace the finance interview.
Learn More

The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.