Leveraged Buyout (LBO) Financial Model

Description
Introduction

LBO (leveraged buyout) model is a financial analysis tool used to evaluate the acquisition of a company using a significant amount of borrowed funds, typically by a private equity firm. It assesses the feasibility and potential returns of the transaction based on projected cash flows and the financial structure of the deal.


Inputs

Revenues: Calculate the annual revenues according to sales volume growth, the number of days per year, and the unit price.
Cost Schedule: Calculate the variable and fixed costs.
CapEX: Calculate the Tax-base and accounting-base depreciation.
Financing Assumptions:

• Revolving Credit Line
• Loans
• Senion Debt

Drivers: Drivers for scenarios analysis
Outputs

Financial Statement: According to scenarios analysis and current/deferred base taxes.
Tax Schedule: Calculate current and deferred base taxes, as well as the effects of taxation due to the interest rate.
Supporting Schedule: Working capital assumptions and debt schedule
Credit Metrics: Calculation of Financail metrics - Total Debt/EBITDA - Debt Service Coverage Ratio (Both with EBITDA cushion)
Sensitivities: Sensitivities of Sponsor IRR and Cash-on-Cash
Executive Dashboards: With graphs and Return Attibutions

About us

At N Consulting, we specialize in delivering top-tier financial modeling services tailored to meet the unique needs of businesses across various industries.

Our expert team creates detailed financial models that support strategic decision-making, optimize financial performance, and drive business growth.

We navigate our customers in deep water of entrepreneurship by providing forecasting, budgeting, valuation, to empower your financial planning and ensure your company's success.

Help & Support

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