This model is specifically built for leveraged buyout (LBO) and acquisition analysis of private companies. It's ideal for private equity firms, family offices, corporate development teams, and investment bankers evaluating buyout opportunities. The model calculates investor returns (cash-on-cash multiples and IRR) based on entry and exit valuations using EBITDA multiples.

The LBO model includes comprehensive debt modeling capabilities including:

• Sources & uses breakdown showing equity vs. debt financing at entry

• Debt paydown schedule tracking principal reduction over the holding period

• Interest expense calculations at a customizable interest rate

• Cash sweep functionality that applies excess free cash flow to debt repayment

• Credit metrics monitoring including Debt/EBITDA and Interest Coverage ratios

You can adjust the initial debt amount, interest rate, and debt paydown assumptions to model different capital structures and their impact on equity returns.

The model outputs key performance metrics for evaluating investment opportunities:

Investor Return Metrics:

• Cash-on-Cash Multiple (MoIC): Shows total cash returned divided by initial equity investment

• Internal Rate of Return (IRR): Annualized return percentage on equity investment

Credit & Financial Health:

• Debt/EBITDA ratio: Measures leverage levels

• EBITDA/Interest expense coverage: Assesses debt service capacity

• Levered Free Cash Flow: Available cash after debt service and capex

The LBO model projects these metrics over a 5-year period to help assess deal viability and risk.

You do not need advanced MS Excel or financial modeling skills to use the LBO Model. We will provide an instantly downloadable MS Excel file with detailed instructions. With basic knowledge of MS Excel you will be able to incorporate your assumptions into the LBO model to run scenarios and calculate returns. 

If you would like more support, please contact us. We’re glad to offer implementation services to compliment your efforts.

Yes! Please contact us to discuss a customized solution to meet your goals. We are have deep LBO modeling and valuation experience.

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