As an analyst, corporate acquirer, or somebody who works in Mergers & Acquisitions or Private Equity, you''ll think about debt capacity after looking at a possible future LBO deal flow. Obviously it's possible to build your own big LBO model but this is quicker and smarter.
The debt capacity calculator is super handy for getting a fast and rough overview to organise deal opportunities.
This was made so that you can get a rough view of a company's debt capacity with only a couple of estimations in a short amount of time. You're able to quickly read a profit and loss statement, fill in a couple of figures and there you have your model complete.
I didn't think there was a lot of point in writing a step-by-step guide on how to use this, because you'll either know how to use it or not.
If you're on this page you're probably a VC or a founder so this is a Pareto model I've made. You're welcome to download and mess around on it- hopefully you'll learn something from it!
I made these models ages ago and I don't use them at the minute so I'm putting them on the web for someone else to use, hoping they'll be useful to somebody!
This Best Practice includes
1 Debt Capacity Excel Calculator