Basic Leveraged Buyout Modeling

Leveraged buyouts (LBOs) are among the most risky and complex financial transactions, and typically set the floor or minimum valuation. Building a full-blown, complex LBO model may not be necessary, however, to quickly gauge the feasibility of an LBO. Receive a condensed overview of LBO modeling that incorporates all the major inputs and value drivers of an LBO transaction including rationale and ideal candidates. Construct and sensitize a basic leveraged buyout model from scratch; analyze basic credit and leverage statistics and equity sources that drive the LBO model; and build condensed IRR sensitivity analysis to evaluate financial sponsor returns.

Prerequisite: Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals are required.
NYSSA’s “Excel Fundamentals for the Finance Professional,” “Basic Financial Modeling Using Excel,” and “Corporate Valuation Methodologies” are excellent programs to build your skills.

Level: Intermediate