LBO Model Excel Template
LBO Model Template to assess your investments. One-sheet template in Excel with dynamic charts. Fully printable. Works on Mac & Windows.
LBO Model Template in Excel will basically calculate the MoIC (Multiple on Invested Capital) and IRR (Internal Rate of Return) of your investment according to the main assumptions. It will also give you an overall analysis of the acquisition with interactive charts.
A leveraged buyout (LBO) is basically the acquisition of a target company by an investor using a significant amount of debt. The debt funding is the key issue in LBO Model, as this will serve as leverage in excel.
All you need is to input your assumptions and the remaining will be calculated by the excel template. The good news is: If you are not familiar with financial terms, do not worry. This LBO Model Template includes a comprehensive guide to lead you through the model.
Main Features of the LBO Model Template
This one-sheet excel template consists of 3 main sections:
Let’s have a deeper look into the main sections:
This is the input section of the template. You will fill out only this section, and then the LBO Model Template will calculate other parts. There are three main assumptions:
- Transaction Assumptions: These are related to the transaction conditions such as target name, acquisition year, entry multiple, transaction fees, targeted exit multiple and anticipated investment period.
- Operational Assumptions: Here is the info about the target company’s operations. These will include the last twelve months revenue, EBIDTA margin, annual revenue growth, tax rate, and D&A, CAPEX, and NWC percentages.
- Debt Assumptions: These are related to the debt that is used during the acquisition. To simplify the method, there’s a one-type debt assumption. You will input the total debt amount and interest rate.
You will also define if the debt includes a mandatory payment clause and if the prepayment is allowed by the creditors. If there’s a mandatory payment clause, you should select “Yes” from the dropdown menu and should also indicate the mandatory amortization rate. If the creditors allow for a prepayment, then the excel template will allow making a payment if you have a free cash flow available.
2. LBO Report
This section displays the results of your LBO projections.
Compare the MoIC and IRR of your investment with industry averages and with your targets. You may also see your purchase value and entry equity vs. sale value and exit equity.
The report also includes dynamic charts to show you the funding structure, estimated debt structure, debt repayment analytics, and estimated free cash flows all in Excel!
3. Cash Flow & Payment Schedule
This section brings you a breakdown of your annual free cash flow calculations and detailed payment structure. The table enlarges dynamically according to the investment period selected under the transaction assumptions.
This LBO Model Template includes a comprehensive guide. All the metrics and calculations are explained in detail. This will be a great reference for not only evaluating any investment but also for understanding the basics of leveraged buyout model.
As a final word, this basic LBO model template is a helper for you to analyze your investment projection in excel spreadsheet, but of course does not include any investment advice.
LBO Model Template Features Summary:
- Includes a comprehensive guide about the LBO model template
- Calculates the MoIC and IRR of the investment
- Full print ready
- Informational notes included
- No installation needed, ready to use
- Works both on Mac and Windows
- Compatible with Excel 2010 and later versions
- Does not include any VBA code or macros