LBO Real Case Study- Complete Analysis Model -Ultimate Guidance- Waterfall Cash Flow

This provides a LBO (Leveraged Buyout) real case study model. The model can be seen as an ultimate guidance of running a comprehensive LBO model.

by JL Valuation & Modeling
Valuation & Modeling ProfessionalFollow

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Description
This provides a LBO (Leveraged Buyout) real case study model. The model can be seen as an ultimate guidance of running a comprehensive LBO model that requires calculation of purchase price, goodwill, proforma of balance sheet, financial forecast, and waterfall of debt repayment etc.

Besides, its highly dynamic and customizable characters facilitate analysts to consider it as a ready-to-use template for their real LBO case.

The LBO modeling task can be always frustrated due to its sophisticated deal structures. However, the model provides a written LBO model build guidance and notes on key takeaways. With the help of this guidance and the explanation by a real case model involving all core elements of LBO deal, the investors or analysts will absolutely be more clear about their proposed deal and will make a better decision.

The model is based on an equity/debt financing LBO case that includes the most basic and important metrics of LBO deal, the detailed forecast of the Profit and Loss and the complete waterfall of debt repayment which will facilitate user’s comprehensive and precise analysis of the deal’s return and cash level.

The waterfall of debt schedule demonstrates how to arrange debt repayment of LBO transaction according to their priorities and how the free cash flow will be used.

The sensitivity analysis on the IRR and MoM (Money-on-Money) multiple also helps users to get a general idea on what is the threshold of the EBITDA multiples that will make the purchase profitable.

The model is created with single-sheet style to make the users’ experience more comfortable and to avoid inaccurate linkage. To customize the template, users can simply modify the inputs in color BLUE. The result will be automatically updated.

The template is greatly user-friendly either for professional analysts or for users with little experience of financial modeling since its simply design pattern and easy to follow logic. The model will provide useful information and be helpful for decision making.

The single-sheet template has been divided into 7 parts which are
1. Assumptions
2. Transaction
3. Purchase Price & Goodwill
4. Proforma Balance Sheet
5. Profit & Loss Forecast
6. Balance Sheet Forecast
7. Free Cash Flow Forecast (Waterfall for Debt)
8. Debt Schedule
9. Supporting Calculation (Depreciation & Working Capital)
10. Returns
11. Sensitivity Analysis

Bonus contents
1. LBO Modeling Guidance
2. LBO Modeling Key Takeaways

To guarantee the users satisfaction, the model does not place any complicated formulas or VBA code. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly in priority.

Please feel no hesitate to contact us if you experience any problem when using the models provided.

In addition, if you need a customized model for your specific business, please just let us know and we would be happy to help you with this.

This Best Practice includes
1 Excel model