Leveraged Buyout (LBO) Model — Excel Template with IRR & MOIC Returns

This Leveraged Buyout (LBO) Model is a fully built Excel template for underwriting a private equity acquisition end to end. Enter a target company entry EBITDA, purchase multiple, and leverage level, and the model builds the sources and uses of funds, a five-year debt schedule with interest expense and a cash sweep that pays down debt using excess free cash flow, plus operating projections covering EBITDA growth, capex, working capital, and cash taxes.

At exit, it applies an exit EV/EBITDA multiple to derive exit equity value to the sponsor, then computes Sponsor IRR and MOIC on the equity check. A sensitivity table flexes entry and exit multiples against each other to show how returns move across a realistic pricing range, and a validation sheet automatically checks leverage limits, debt balances, and formula errors.

Who It Is For

Built for:

• Private equity analysts and associates,

• Investment banking professionals doing sponsor-side or buy-side work,

• Corporate development teams evaluating leveraged acquisitions,

• MBA and finance students learning LBO mechanics,

• Independent investors or search fund operators who need a credible, transparent buyout model without building one from scratch.
  
  

What Is Included

A clean 9-sheet workbook:

• Cover with model metadata,

• Instructions explaining color-coding and workflow,

• Assumptions for global settings,

• Inputs where deal, operating, and exit assumptions go in blue cells,

• Calculations with the entry structure, debt schedule, and equity cash flow build,

• Dashboard summarizing Sponsor IRR, MOIC, and entry/exit equity values,

• Sensitivity sheet with an IRR grid across entry and exit multiples,

• Checks sheet running ten automated validation tests with PASS/WARNING/FAIL status,

• Version History.
  
  

All formulas are transparent and editable, so you can adapt assumptions to any target company or deal structure.