LBO model tutorial with free Excel
The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of an acquisition is named a Leveraged Buyout Analysis. It is used to determine an implied valuation range for a given target in a potential LBO sale based on achieving acceptable returns.
Step by step LBO Valuation tutorial
In these coming four 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 LBO valuation.
Start by downloading this LBO model for Excel (it is 100% free and takes less than 1 minute to download). All required inputs will be described in detail below.
Expand each section to follow the (free!) LBO-model tutorial. Now lets do some modeling!
Sneak peek of the LBO model (click to enlarge screenshots)
You need to activate “iterations” in Excel for this LBO model to work properly. It can be switched on under Excel options / formulas / then check the box “Enable iterative calculations”. See picture here for help (if needed).
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Specialities: Business valuations, Excel models, Business development, Investment Banking, Buyouts, Divestments, Share issues, IPOs, Management Buyouts, Leveraged Buyouts.
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