Leveraged Buyout (LBO) Modelling

Description

This training has been developed for participants to learn how to model a Leveraged Buy-Out (LBO). This course concentrates on understanding the implications (both modelling and deal) of the finance structuring and financial returns for private equity and advisory professionals. 

The training will be modular, over three days. 

During the first day, participants will calculate an Internal Rate of Return (IRR) and money multiple (MM) based on a few LBO assumptions and perform basic LBO models.

During the second day, participants complete a fully integrated three-statement LBO model with a cash sweep, compute a few credit ratios and sponsor and management financial returns. 

During the final day, participants focus on complex LBO modeling issues, including buy-and-build structures, opco/holco structures and  leveraged recapitalisations. 

What you will learn

• Model a basic to advanced three-statement LBO model;
• Understand the capital structure instruments and how to model them;
• Grasp and model a two-tier structure between management and private equity (sweet equity-instructional strip);
• Build complex LBO issues, including a buy-and-build, an opco-holdco structure and leveraged recapitalisation models.