Merger & LBO Model Valuation
  • Merger & LBO Model Valuation
  • Merger & LBO Model Valuation
  • Merger & LBO Model Valuation
  • Merger & LBO Model Valuation
Originally published: 17/06/2016 13:40
Last version published: 30/03/2017 09:41
Publication number: ELQ-57262-4
View all versions & Certificate

Merger & LBO Model Valuation

This LBO model in excel analyzes the value of equity and the firm in a leveraged buyout operation.

financefirmlbolbo analysisleveraged buyoutmergersmodel

In the context of a leveraged buyout this 6 step LBO model will enable you to know if the deal should be accepted by equity investors and all investors by computing the present value of cash flows.

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (

This business tool includes
1 Excel Model File

Prof. Aswath Damodaran offers you this business tool for free!

download for free


Further information

This LBO model will enable you to make a decision on wether your merger & Leveraged Buyout (LBO) has to be accepted, from the equity and other investors point of view by giving the following output data:

- Present Value (PV) of Cash Flows (CF) vs Initial Investment for Equity Investors and All Investors
- Cashflow to Equity Investors (Average Free Cash Flow to Equity (FCFE), Maximum FCFE, Minimum FCFE, Standard Deviation of FCFE
- Leverage (Debt/Equity Ratio before LBO, Debt/Equity after LBO, Debt/Equity Ratio in year 5, Debt/Equity Ratio in year 10)
- Beta (Beta before LBO, Beta after LBO, Beta in year 10)


Any questions on Merger & LBO Model Valuation?

The user community and author are here to help. Go ahead!

please wait...