Merger & LBO Model Valuation Excel

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

by Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,036

with NYU Stern School of Business
An Education in PossibleFollow 54

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Description
In the context of a Leveraged buyout this 6 step LBO excel 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.

STEP 1: Estimate the total cost of the deal
STEP 2: Define how the deal will be financed
STEP 3: Define rates of future growth
STEP 4: GENERAL INFORMATION
STEP 5: SPECIFY ASSETS TO BE SOLD (Enter the year in which assets will be sold and market value and CF to the firm from those assets)
STEP 6: ENTER INFORMATION ON CURRENT INCOME STATEMENT

- Prof. Aswath Damodaran

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1 Excel Model File