LBO Modeling

Master leveraged buyout modeling from quick paper calculations to complex Excel models. Essential skill for private equity, investment banking, and credit professionals.

Investment Banking:High Priority
Private Equity:High Priority
Growth Equity:High Priority
Private Credit:High Priority
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Learning Modules

LBO Fundamentals

30 min

Understanding the basic mechanics of leveraged buyouts, why they work, and key drivers of returns.

Paper LBO Walkthrough

analyst focus45 min

Step-by-step approach to solving paper LBOs quickly and accurately under interview pressure.

Advanced Paper LBO

associate focus60 min

Complex scenarios, multiple exit assumptions, and handling edge cases in paper LBO calculations.

Excel Model Building

associate focus120 min

Building full LBO models from scratch, including debt schedules, cash flow statements, and sensitivity analysis.

Growth Equity Assumptions

45 min

Adapting LBO models for growth companies with different assumptions and value drivers.

Credit Considerations

30 min

Understanding how leverage impacts credit quality and what lenders look for in LBO financing.

Practice Problems

Quick Paper LBO

15-minute timed practice problems

AnalystDifficulty: Medium

Complex LBO Model

Full Excel model building exercise

AssociateDifficulty: Hard

Growth LBO Scenario

High-growth company assumptions

BothDifficulty: Medium

Credit Analysis

Debt capacity and structure focus

CreditDifficulty: Medium

Quick Reference

Key LBO Metrics

Entry Multiple: 8-12x EBITDA
Exit Multiple: 10-15x EBITDA
Leverage: 4-6x EBITDA
Target IRR: 20-25%

Common Interview Questions

• Walk me through an LBO
• What drives LBO returns?
• How do you calculate leverage?
• What's optimal capital structure?

Progress Tracking

2 of 6 modules completed