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 7 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 8 years ago
Leveraged Buyout Overview: about goodwill
hello I am a little unclear about the accounting treatment. You mentioned the goodwill is the difference between the purchase price and the book value. But from my knowledge:if the M & A is viewed prospectively (restate everything and look forward) by treating the transaction as a purchase. ... Read More
Go to post added 10 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 10 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 10 years ago
Modeling/Projecting Floating Rates
I just completed the quick and dirty and advanced LBO courses and had a real world question: With bank debt being at a spread above LIBOR, how do u usually deal with projecting/modeling floating rate interest rates (for bank debt) in leveraged models? Do you assume a constant libor for say 5 yea... Read More
Go to post added 10 years ago
adv lbo model questions
a bunch of questions in the advanced lbo model. Sources and uses: uses: this is likely a stock (not asset) purchase (as debt is refi'd/purchased/needs to be taken care of...)? what is the equity prem based from? if co has lot of cash, them would this affect eq prem? don't see cash or min int in u... Read More
Go to post added 10 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 10 years ago
Quick & Dirty Basic LBO Model: Modeling Private Cos
In the Core Merger Modelling Topics module, the models you build concern public listed companies either as acquirors or as targets. What are the effects on a model when the target is a private (not listed company) or a Business Unit that a corporation wants to dispose. For example let's as... Read More
Go to post added 10 years ago
Quick & Dirty Basic LBO: transaction enterprise value
Hi. when you are calculating the transaction enterprise value,you use the sum of the equity acquisition and the existing net debt refinanced to arrive at the transaction enterprise value. But the $750 maintained on books has the significant effect on the amount of the existing net debt refinanced... Read More
Go to post added 10 years ago