Corporate Finance Institute – Leveraged Buyout (LBO) Modeling

Leveraged Buyout LBO Modeling Course Overview

A leveraged buyout model – or LBO – is one of the most common models built at investment banks and private equity firms. This advanced class covers modeling best practices, creating multiple scenarios for assumptions, modeling the income statement and cash flow statement, as well as a complex capital structure. Additionally, we cover the calculation of IRR and cash-on-cash returns, credit metrics and covenants, error checks, and a dashboard with multiple types of charts and sensitivity analysis.

Leveraged Buyout LBO Modeling Learning Objectives

By the end of the course, you should be able to:

• Define a leveraged buyout (LBO) and build a simple LBO model.
• Identify the characteristics of good candidates for LBO transactions.
• Examine a number of typical LBO exit strategies used by private equity firms.
• Outline the typical capital structure of an LBO transaction in terms of leverage and types of capital.
• Explain the characteristics of each piece of capital and its position and priority in the capital stack.
• Construct a full LBO model and evaluate the merits of the transaction by examining the equity returns.

Who Should Take this Leveraged Buyout LBO Modeling Course?

This LBO modeling course is most suitable for professionals working in investment banking and private equity, although it may also be useful for professionals in corporate development or other areas of finance.

Recommended Prep Courses

These preparatory courses are optional, but we recommend you to complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

1. Excel Fundamentals – Formulas for Finance
2. Building a 3 Statement Financial Model
3. Business Valuation Modeling Part I

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