Package 6: Leveraged Buyout Modeling

Our LBO modeling courses introduce critical skills required for properly understanding and quantifying capital structure changes from simple share repurchases to the extreme of a leveraged buyout. The techniques and concepts learned in building proper, robust, dynamic and flexible LBO models are highly valued given the relative difficult nature of setting up, quantifying and articulating the complex relationships and intricacies of the LBO. We clearly convey the complexities involved in understanding the deal structure, sources & uses, refinancing options, credit ratios and the all-important debt sweep.


Last 10 posts

Valuation Summary - Private Company Differences
Hello. What differences are there in Valuation Summary for a private company vs. a public company (as shown on slide 14)?
Go to post added 4 years ago
Credit/Leverage Statices
The video does not go over the credit leverage ratios section. Can you send me the answers? Know its self explanatory, really just interested in cumulative debt paydown
Go to post added 6 years ago
Cost of Equity and Debt
How does the cost of equity of the target affect an LBO or investment decision? This is a private company and I know that publicly traded entities with the same risk characteristics have a cost of equity of 8.5%. I am wondering if it affects anything other than the initial standalone valuation used ... Read More
Go to post added 7 years ago
Quick & Dirty Basic LBO Model: About the LBO model
Hi there, In relation to this class, I have a couple of doubts that you may be able to help me with: (1). If we had dividends during the investment period, would we include them when calculating the Multiple of Capital (in that case being [Dividends + Exit Equity Value] / [Equity Injected] )? ... Read More
Go to post added 7 years ago
Leveraged Buyout Overview: About LBO Overview
Hi there, As usual, I have a couple of questions/validations to make sure I fully understood the concepts here to move on to the Q&D Basic LBO Model course: (1). Is goodwill created only when when we purchase 100% of the target company? What's the relationship between GW creation and the %... Read More
Go to post added 7 years ago
LBO - Quick & Dirty - for a early stage investment
I was hoping to clarify the use of the LBO model for a project. My inputs into the model would be as followed: 1. Transaction Enterprise value would be the the Max Debt (Ending Balance under the debt sweep) of the project, which in our case occurs in year 2 2. New Equity is a plug, and up to us to ... Read More
Go to post added 7 years ago
I am working on a quick and dirty LBO model for a large retail chain. I assumed 20% transaction premium, as well EBITDA and revenue multiples of 6.89x and 1.2x respectively. The actual multiples are 4.4 and 0.77. I have two questions: 1) Are my transaction multiples too high comparatively with the... Read More
Go to post added 7 years ago
LBO "Super Complex Course"
Hi, I purchased the quick and dirty LBO course, but am thinking about taking the complex course. Is it possible to upgrade, by paying $500 to get all the courses? I've already paid $250 for the quick and Dirty course. Thank you Greg
Go to post added 7 years ago
Emerging Markets
During the LBO class discussion, it wasn't clear to me what the recommended treatment for adjustment for valuing an emerging market company. Are you saying to use not the US risk free rate and therefore adjust for the country specific rate, adjust the market risk premium, or adjust to the total numb... Read More
Go to post added 7 years ago
about LBO
Hi, I know that this is not the forum for this question, but as my access to the Q&D LBO model course expired I cannot access that forum anymore, so I'm posting here. I was wondering if you can just shed me a light on how to adjust the S&U in an LBO model when not acquiring 100% of the ta... Read More
Go to post added 7 years ago