This LBO model course is designed for advanced financial practitioners. It is most suitable for professionals working in investment banking and private equity, although it may also be useful for professionals in equity research, corporate development, and other areas of finance.
This course counts as one of the Elective requirements for CFI’s Financial Modeling and Valuation Analyst (FMVA)™ certification.
You are expected to have either completed the stated prerequisite course(s) or possess the equivalent knowledge prior to enrolling in this course:
Leveraged Buyout LBO Modeling Course
Learn to build an LBO model from scratch in CFI’s leveraged buyout modeling course. This advanced class covers how to set up and build an LBO model step-by-step including assumptions, financing, forecast income statement, balance sheet, cash flow, debt schedule, DCF, IRR, sensitivity analysis, error checks, all formulas, functions, and formatting.
LBO Modeling Curriculum
This advanced financial modeling course covers everything you need to build an LBO model from scratch. Learning objectives include:
- Layout and structure – how to effectively set up the model in Excel
- Assumptions – general transaction details, operating scenarios, financing terms, sources and uses of cash, etc.
- Historical financial statements – linking the 3 statements in Excel
- Building the forecast – using operating scenarios and other assumptions to drive the forecast
- Transaction balance sheet – calculating all adjusting entries to create a pro forma balance sheet (goodwill, recapitalization, etc)
- Debt schedule – model all tranches of debt and interest using dynamic formulas
- Credit metrics – model all necessary debt covenants such as debt/EBITDA, EBIT/Interest, fixed-charge coverage ratio, and more
- DCF & IRR – incorporate a discounted cash flow (DCF) analysis and internal rate of return (IRR) by investor type
- Sensitivity analysis – create data tables to sensitize the IRR based on changes in key assumptions and drivers
- Charts & graphs – show outputs and results from the LBO model
Why Take this LBO Modeling Class?
Looking to take your career to the next level and learn advanced technical skills? In this step-by-step class, you’ll learn how professionals build LBO models from scratch, including every single formula and function. The main benefits of taking this class include:
- Learning the mechanics of a leveraged buyout transaction
- Understanding how to most effectively structure an LBO model
- Learning advanced Excel formulas and functions
- Building a complex financial model
- Assessing a company’s debt capacity
- Evaluating the attractiveness of an acquisition opportunity
- Gaining confidence in advanced modeling techniques
- Advancing your career as a financial analyst