Leveraged Buyout LBO Model

A fully customizable excel LBO model to assess the debt level your firm can take in a deal & expected investor returns

by Firmex
Deals can be complicated, your data room shouldn’t be.

11 reviews2,580 views|Start the discussion!|Bookmark

Description
Why waste time making your own Leveraged Buyout Model?

A leveraged buyout model shows what happens when a private equity firm or private investors acquire a company using a combination of equity and debt, and then sells it in 3-5 years. Leveraged buyouts are similar to normal M&A deals, but in an LBO you assume that the buyer is a financial investor and sells the target in the future.

Instructions:
* Input major inputs on Summary worksheet (all inputs in blue).
* Input company historical financial information on Historical Financials worksheet (all inputs in blue).
* Input assumptions for future periods on Assumptions worksheet (all inputs in blue).
* Optional assumptions on Projected Financials worksheet (all inputs in blue).
* Optional assumptions on Return Analysis worksheet (all inputs in blue).
* Model assumes 100% acquisition of target company.
* Model assumes most recent year-end balance sheet is closing balance sheet for transaction.
* Model assumes no step-up in asset values.
* Model assumes no amortization of goodwill from acquisition.
* Transaction amount (Uses of Funds) is expected to equal Financing Amounts (Sources of Funds).
* Debt amortization = "Yes" results in equal annual amortization.
* Debt amortization = "No" results in balloon repayment.
* Short-term debt is not amortized in model.
* Model assumes investment exit in 5th year following acquisition.
* Use Print -> Entire workbook to print all pages.

- Firmex Team

This business tool includes
1 Excel Model