Leveraged Buyout (LBO) – Financial Model
Download the Leveraged Buyout (LBO) – Financial Model by submitting the blue form below.


Introduction

LBO (leveraged buyout) model is a financial analysis tool used to evaluate the acquisition of a company using a significant amount of borrowed funds, typically by a private equity firm. It assesses the feasibility and potential returns of the transaction based on projected cash flows and the financial structure of the deal. The purpose of an LBO is usually to enable a private equity firm to acquire a controlling interest in a company.

LBOs can be risky because they rely heavily on borrowed money, which means the target company must generate enough cash flow to service its debt obligations. However, when successful, LBOs can generate significant returns for investors due to the leverage used to acquire the company.

Inputs

Revenues: Calculate the annual revenues according to sales volume growth, the number of days per year, and the unit price.
Cost Schedule: Calculate the variable and fixed costs.
CapEX: Calculate the Tax-base and accounting-base depreciation.
Financing Assumptions:


Revolving Credit Line
Loans
Senion Debt
Drivers: Drivers for scenarios analysis

Outputs

Financial Statement: According to scenarios analysis and current/deferred base taxes.
Tax Schedule: Calculate current and deferred base taxes, as well as the effects of taxation due to the interest rate.
Supporting Schedule: Working capital assumptions and debt schedule
Credit Metrics: Calculation of Financial metrics – Total Debt/EBITDA – Debt Service Coverage Ratio (Both with EBITDA cushion)
Sensitivities: Sensitivities of Sponsor IRR and Cash-on-Cash
Executive Dashboards: With graphs and Return Attributions

About us

At N Consulting, we specialize in delivering top-tier financial modeling services tailored to meet the unique needs of businesses across various industries.

Our expert team creates detailed financial models that support strategic decision-making, optimize financial performance, and drive business growth.

We navigate our customers in deep water of entrepreneurship by providing forecasting, budgeting, valuation, to empower your financial planning and ensure your company's success.

Help & Support

If you encounter any issues with this model, please do not hesitate to reach out to our support team for prompt and comprehensive assistance.

By downloading this document, I agree to continue receiving educational materials, newsletters, product updates, event invitations, and other information from Flevy and the author. I understand I may opt out or update my preferences at any time.

Download the Leveraged Buyout (LBO) – Financial Model now!

All fields required.

Full Name
Your Email
Your Role

Read Customer Testimonials

 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC
 
"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
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"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
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so "

– Omar Hernán Montes Parra, CEO at Quantum SFE
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

– Ed Kemmerling, Senior Lean Transformation Expert at PMG