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.
LBO Calculator (Excel template (XLSX)) Preview Image
LBO Calculator (Excel template (XLSX)) Preview Image
LBO Calculator (Excel template (XLSX)) Preview Image
Arrow   Click main image to view in full screen.

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 THIS EXCEL DOCUMENT

  1. Excel XLSX File

VALUATION MODEL EXAMPLE EXCEL 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, Improve Your Excel


$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 image
Additional documents from author: 74

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. With user-friendly interfaces and ... [read more]

Ask the Author a Question

You must be logged in to contact the author.

Click here to log in Click here register

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

 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
 
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership




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 Oil & Gas Fundraising

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.