Course curriculum

  • 1

    Introduction

    • Course introduction

    • Learning objectives

    • LBO model preview

    • Advanced financial modeling

    • Downloadable files

  • 2

    Leveraged Buyout (LBO) Overview

    • Why perform a leveraged buyout?

    • Capital stack and debt capacity

    • LBO terms and definitions

    • Case study overview

    • LBO modeling steps

  • 3

    Assumptions

    • General transaction assumptions

    • Operating scenarios

    • Purchase price

    • Financing and leverage

    • Sources and uses of cash

    • Additional items

  • 4

    Historical Financial Statements

    • Income statement

    • Balance sheet

    • Cash flow statement

    • Supporting schedules

    • Goodwill and purchase price allocation

  • 5

    Transaction Balance Sheet

    • Transaction balance sheet overview

    • Fair value adjustments

    • Transaction adjusting entries

    • Closing balance sheet

  • 6

    Forecast Financial Statements

    • Forecast setup

    • Income statement

    • Balance sheet

    • Supporting schedules

    • Cash flow statement

  • 7

    Debt & Interest Schedules

    • Debt and interest overview

    • Line of credit (draws)

    • Line of credit (repayments)

    • Cash available for discretionary repayments

    • Term loan 1 mandatory repayments

    • Term loan 1 discretionary repayments

    • Term loan 1 interest

    • Term loan 1 error check

    • Term loan 2

    • Subordinated debt

    • Total debt

  • 8

    Final Linking

    • Outstanding items

    • Balance sheet balances

  • 9

    Credit Metrics

    • Credit metrics overview

    • Total debt service

    • Operating metrics

    • Credit ratios

  • 10

    DCF, IRR, & Sensitivity Analysis

    • DCF and IRR overview

    • Time periods and dates

    • Unlevered free cash flow

    • Terminal value

    • Unlevered IRR

    • Free cash flow to equity

    • Equity sponsor IRR

    • IRR by investor type

    • Cash-on-cash return

    • Sensitivity analysis - sponsor IRR

    • Sensitivity analysis - sponsor cash-on-cash

    • Adding IRR to the header

  • 11

    Error Checks

    • Balance sheet

    • Transaction adjustments

    • Cash sweep

    • Sources and uses of cash

    • Debt repayments

    • Master error check

  • 12

    Charts & Graphs

    • Charts overview

    • Cash flow chart

    • Leverage charts

  • 13

    Conclusion

    • Review of completed LBO model

    • Final audit

    • Download completed Excel model

    • Summary

  • 14

    Qualified Assessment

    • Qualified assessment

    • Share Your Feedback

    • Course Completion