Paper LBO Model

Description
The Paper LBO is the most basic version of an LBO you'll be expected to complete during a private equity interview. Use this file as a guide to create your own LBOs.

The model begins with the creation of your assumptions, which include your Entry/Exit multiples and Entry Leverage. In addition, you will provide an EBITDA growth rate and Tax Rate. Next, you should create your Deal Entry section to determine your Total Enterprise Value and Leverage. The P&L & Cash Flow section comes next. Finally, you will create your Deal Exit section and calculate your IRR and MoM return.

It is important to familiarize yourself with the concepts encompassed within the Paper LBO to demonstrate your understanding of a Leveraged Buyout and how a private equity transaction works.

This model can be used to prepare for private equity interviews or to quickly determine the feasibility of an investment. The utility of the model is the ability to get a read on a potential investment without building out a full-fledged LBO.

* This model is compatible with Excel 2013 and above. This model was built by a private equity professional and is applicable in most private equity interview scenarios requiring a Paper LBO.