LBO Modelling in Excel
Course Summary
3 Days | High Impact
This intensive 3-day course guides participants through building a fully integrated Leveraged Buyout (LBO) model from scratch in Excel. Participants begin with recap of key 3-statement integration principles, then advance into deal structuring, financing layers, and returns analysis based on real-world private equity transactions.
Using live data from recent LBO case studies, participants model the acquisition structure, debt tranches, equity funding, and post-deal financial performance. Focus is placed on understanding cash flows available for debt service, IRR optimization, and sensitivity to leverage and exit multiples.
By the end of the course, participants will have constructed a complete, dynamic LBO model, applying the analytical techniques and modelling conventions used by leading investment banks and private equity firms.
Learning Objectives
- Confidently construct a fully integrated LBO model in Excel.
- Model layered financing structures including Term Loans, Revolvers, PIK instruments, and Mezzanine debt.
- Evaluate acquisition price, equity contributions, and post-deal ownership.
- Build detailed debt schedules with amortization, cash sweep, and interest linkage.
- Project financial statements under new capital structures and assess returns to each investor class.
- Perform scenario and sensitivity analysis on leverage, exit multiples, and holding periods.
- Compute investor IRRs and money-on-money (MoM) multiples across capital tranches.
- Integrate outputs into dashboards and summarize deal outcomes visually.
Who Should Attend
Professionals with at least 2–3 years of experience and a solid grasp of financial statements and Excel. Suitable for:
- Investment Banking and Private Equity Analysts
- Corporate Finance & M&A Professionals
- Credit Officers and Leveraged Finance Teams
- Strategy and Valuation Specialists
Learning Topics
- LBO Framework Overview – Key deal participants, transaction flow, and drivers of leveraged buyouts
- Transaction Assumptions Setup – Purchase price, funding sources & uses, and capital structure design.
- Excel Integration Review – Linking P&L, Balance Sheet, and Cash Flow under leveraged conditions.
- Debt & Financing Schedules – Building layered debt structures with revolvers, term loans, mezzanine, and equity bridge.
- Interest & Cash Flow Waterfalls – Tracking cash movements, priority of payments, and debt servicing.
- Equity Structure & Returns – Modeling investor classes, equity rollovers, management incentives, and IRR/MoM analysis.
- Exit Modelling – Valuation at exit, multiple expansion, and timing of realization.
- Scenario & Sensitivity Analysis – Evaluating impact of leverage, entry/exit multiples, and holding period changes.
- Outputs & Dashboard Design – Presenting deal summary, sources/uses, capital structure, and return metrics dynamically.