Leveraged Buyout Analysis – LBO model
The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. It is used to determine an implied valuation range for a given target in a potential LBO sale based on achieving acceptable returns.
LBO model step by step guide for free
Below is a step by step LBO valuation guide, divided into four parts. The tutorial is free and you can download the LBO model for free as well. The outcome of the tutorial/model is shown below. If you have questions about the model or need help with the inputs, please make a comment on the post/page.
This is the ouput of the finished LBO Valuation
Step by step LBO Valuation tutorial (each step is described)
In these coming steps, you will be able to perform your own LBO Analysis. This LBO model is simplified in order to teach you the basics of a Leveraged Buy Out Valuation.
- Download this free LBO model
- Enter Deal Value
- Enter historical financials
- Forecast period
- Understanding the results
