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leveraged buyout modeling
March 28 - March 29
This advanced class covers how to set up and build an LBO model step-by-step including assumptions, financing, forecast income statement, balance sheet, cash flow, debt schedule, DCF, IRR, sensitivity analysis, error checks, all formulas, functions, and formatting.
Learning objectives include:
- Layout and structure – how to effectively set up the model in Excel
- Assumptions – general transaction details, operating scenarios, financing terms, sources and uses of cash, etc.
- Historical financial statements – linking the 3 statements in Excel
- Building the forecast – using operating scenarios and other assumptions to drive the forecast
- Transaction balance sheet – calculating all adjusting entries to create a pro forma balance sheet (goodwill, recapitalization, etc)
- Debt schedule – model all tranches of debt and interest using dynamic formulas
- Credit metrics – model all necessary debt covenants such as debt/EBITDA, EBIT/Interest, fixed-charge coverage ratio, and more
- DCF & IRR – incorporate a discounted cash flow (DCF) analysis and internal rate of return (IRR) by investor type
- Sensitivity analysis – create data tables to sensitize the IRR based on changes in key assumptions and drivers
- Charts & graphs – show outputs and results from the LBO model
Who Should Take this LBO Model Course?
This LBO model course is designed for advanced financial practitioners. It is most suitable for professionals working in investment banking and private equity, although it may also be useful for professionals in equity research, corporate development, and other areas of finance.