LBO Calculator   Excel template (XLSX)
$39.00

LBO Calculator (Excel template (XLSX)) Preview Image LBO Calculator (Excel template (XLSX)) Preview Image LBO Calculator (Excel template (XLSX)) Preview Image Flevy is the marketplace for business best practices.
Loading preview images...
Arrow  

LBO Calculator (Excel XLSX)

Excel (XLSX)

$39.00
Our online platform provides a wide range of engaging and useful templates that cater to various needs.
Add to Cart
  


Immediate download
Fully editable Excel
Free lifetime updates

BENEFITS OF DOCUMENT

  1. Excel XLSX File

DESCRIPTION

This product (LBO Calculator) is an Excel template (XLSX), which you can download immediately upon purchase.

In a leveraged buyout (LBO), a sponsor acquires a target company using debt, repaid by the target's cash flow, benefiting from tax-deductible interest payments.

In a leveraged buyout (LBO), a sponsor company acquires a target company by utilizing a substantial amount of debt as leverage. This strategy allows for a lower cost of financing the acquisition compared to using equity alone, as the interest payments on the debt are typically tax-deductible. The target company's cash flow is then used to repay the principal amount of the debt.

Transaction Assumptions
These assumptions pertain to the terms of the transaction. It is assumed that the transaction will be conducted on a cash-free, debt-free basis, meaning the company will be sold without any outstanding debt or surplus cash, which is standard practice in such transactions.

LBO Target Name: The name of the company being targeted.
Transaction Year: The year in which the transaction is finalized, referred to as Year 0.
Entry Multiple (EV/EBITDA): This ratio is used to determine the enterprise value of the target company relative to its EBITDA.
Transaction Fees: The total one-time expenses paid for the transaction to external parties, including investment banks, legal counsel, consultants, auditors, and regulatory bodies.
Targeted Exit Multiple (EV/EBITDA): The desired exit multiple for the sponsor equity, which may be the same as the entry multiple.
Investment Period: The timeframe between the transaction and exit.

Operational Assumptions
These assumptions relate to the target company's operations.
Revenue LTM: The revenue generated by the target company over the last twelve months (LTM).
EBITDA Margin: The proportion of EBITDA to total revenue.
Annual Revenue Growth (y-o-y): The expected annual growth rate of the target company's revenues.
D&A % of Revenue: The projected ratio of the target company's Depreciation & Amortization (D&A) to its revenues.
CAPEX % of Revenue: The projected ratio of Capital Expenditures (CAPEX) to total revenues.
Change in NWC % of Revenue: The rate of change in Net Working Capital (NWC) relative to total revenues.
Tax Rate: The applicable tax rate for the company.

Debt Assumptions
For simplification, there is a single debt assumption type where you can input the average weighted interest rate.
Debt Amount: The total debt acquired from creditors.
Interest Rate: The average weighted interest rate of debts obtained from various sources.
Mandatory Annual Payment: If the debt includes a mandatory payment clause, select "Yes" and specify the mandatory amortization term. If no mandatory payments are required, select "No" and the debt will be repaid using free cash flow.
Debt Amortization Term: The maximum debt amortization term. Prepayments from free cash may shorten the actual term.
Prepayment Allowed: Indicates whether prepayments can be made on debts using available free cash flow. If "No" is chosen, prepayments will be zero during the investment period, and only mandatory payments will be made.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Valuation Model Example Excel: LBO Calculator Excel (XLSX) Spreadsheet, Hafiz Ali


$39.00
Our online platform provides a wide range of engaging and useful templates that cater to various needs.
Add to Cart
  

ABOUT THE AUTHOR

Author: Hafiz Ali
Additional documents from author: 65

Introducing our Excel Premium Templates – your solution to simplifying your tasks. Our collection offers meticulously designed templates that are crafted to streamline your work processes and enhance efficiency. Whether you're managing budgets, creating reports, or organizing data, our premium templates are tailored to cater to your specific needs. [read more]

Ask the Author a Question

Must be logged in

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Bundle and save! You can save up to % with bundles!

View bundle(s)




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials




Save with Bundles

This document is available as part of the following discounted bundle(s):

Save %!
Set of 14 Financial Templates

This bundle contains 14 total documents. See all the documents to the right.

$299.00


Add Bundle & Save


Your Recently Viewed Documents


Customers Also Like These Documents

Related Management Topics


Valuation Model Example M&A (Mergers & Acquisitions) Valuation Banking Manufacturing IPO Fundraising Wind Down

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.