A Leveraged Buyout (LBO) Model is essential for evaluating a leveraged buyout, but also crucial for prospective financial professionals who are going through their Private Equity or Buyside case studies.
Key Components of an LBO Model
Sources & Uses Table
This shows how the financing is being used.
Breaks down the sources of capital (debt and equity) and how they will be used in the transaction.
Financial Projections
Includes income statement, cash flow, and balance sheet forecasts with embedded debt schedule.
Built on historical financials with assumptions about debt repayment timelines.
Exit Analysis
Calculates potential returns through IRR or MOIC across various exit scenarios.
Evaluates outcomes including IPO, sale, or dividend recapitalization.
Model Complexity
LBO Models are lengthy in nature, with our free LBO model including 360 rows of detailed financial analysis and calculations.