What you'll get
  • 3+ Hours
  • 1 Courses
  • Course Completion Certificates
  • Self-paced Courses
  • Technical Support
  • Case Studies

Synopsis

  • Determine purchase price, equity requirements, and debt financing
  • Build income statement projections using revenue and expense assumptions
  • Calculate Free Cash Flow and cash available for debt repayment
  • Prepare a complete debt schedule with mandatory and optional repayments
  • Link the debt schedule to the cash flow statement and income statement
  • Calculate investor returns and create sensitivity analyses
  • Build detailed revenue and cost sheets
  • Understand working capital management, depreciation, and amortization
  • Create financial statement linkages, equity schedules, debt schedules, and IRR analysis

Content

Courses No. of Hours Certificates Details
Leverage Buy-Out – Concepts & Financial Modeling3h 16m✔View Curriculum

Description

This course gives you a clear, practical introduction to Leveraged Buyouts (LBOs) and teaches you how to build a complete LBO financial model used by private equity firms. You will learn how companies are acquired using a mix of equity and debt, how leverage boosts investor returns, and why stable cash flows and strong financial fundamentals are essential for successful LBO candidates.

Through step-by-step instruction, you will build a complete LBO model from scratch, starting with purchase price assumptions, debt structuring, revenue and cost projections, free cash flow calculations, and detailed debt schedules. You will also learn how to link all three financial statements, create sources & uses tables, compute investor returns, and perform sensitivity and IRR analysis.

By the end of the course, you will understand how private equity firms evaluate, structure, finance, and exit LBO transactions. You will learn practical modeling skills used in investment banking, equity research, and corporate finance.

Key Learning Outcomes:

  • Understand the mechanics of leveraged buyouts and how private equity firms use debt to enhance returns

  • Build a full LBO model, including purchase price, equity, and debt structure

  • Create sources & uses tables and assign debt tranches with interest and repayment terms

  • Prepare revenue build-up, cost sheet, and working capital schedules

  • Calculate Free Cash Flow and link the debt schedule to the income statement and cash flow statement

  • Build depreciation and amortization schedules and complete all financial statement linkages

  • Compute investor returns (IRR) and perform sensitivity analysis

  • Identify ideal LBO candidates based on cash flow stability, valuation, risk profile, and management quality.

Requirements

  • A computer with internet access

  • Basic working knowledge of Excel

  • Basic understanding of accounting

  • Some exposure to corporate finance (helpful but not mandatory).

Target Audience

  • Students interested in a career in the financial sector

  • Working professionals seeking to enhance their finance skills

  • Anyone interested in learning LBO modeling.