FS Financial Statements Workbench
Case 1 Case 2 Case 3 NewCase 4 New

LBO model

IB analyst difficulty Working capital, cash conversion cycle, and operating cash-flow bridge
Hide overview

A full leveraged buyout modelling path from transaction sizing through operating forecast, statements, debt, exit valuation, and sponsor returns—with formula checks and analyst prompts along the way.

Build the full LBO model from transaction assumptions through entry valuation, sources & uses, operating forecast, statements, debt schedule, exit waterfall, and returns analysis. Use the model tabs on the left and the analyst workflow on the right.

Transaction assumptions, valuation, and sources & uses

Use this tab for Parts 0–2: entry valuation, equity purchase price, and transaction funding.

Line itemInput / AmountFormula / Note
Part 0: Transaction assumptions
LTM EBITDA
Given
Entry multiple
Given
Debt tranches
Term Loan B: 400; Sub Debt: 1505.5x total debt / LTM EBITDA
Fees
Transaction fees: 30; Financing fees: 20Transaction fees expensed; financing fees treated as debt issuance cost
Hold period
Years
Part 1: Entry valuation
Entry enterprise value
LTM EBITDA × Entry multiple
Net debt at entry
Existing debt − existing cash
Equity purchase price
Entry EV − net debt
Part 2: Sources & uses
Equity purchase price
Use
Repay existing debt
Use
Transaction and financing fees
5030 transaction fees + 20 financing fees
Minimum cash to balance sheet
Use
Total uses
Must equal total sources
Total new debt
Term Loan B + Sub Debt
Sponsor equity
Plug to fund uses
Total sources
Debt + sponsor equity

Core banking convention: entry EV is based on EBITDA multiple. Equity purchase price adjusts for net debt.

Debt refinancing and fees are uses of funds; sponsor equity is the plug after debt sources.