Leveraged Buyout (LBO) Model Built From Scratch | FREE EXCEL INCLUDED
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- Опубликовано: 6 июл 2024
- ⬇️ Download the LBO Excel for FREE ⬇️
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⏱Timestamps⏱
0:00 - Agenda
5:07 - Intro to LBO
7:17 - Assumptions
22:57 - Operating Model
33:10 - Sources & Uses
40:20 - Cash Flow Items
43:45 - Leveraged Free Cash Flow
48:04 - Debt Schedule
58:55 - IRR
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All content in this video is for entertainment purposes only. I am not a professional financial advisor and my statements are not to be taken as instructions or directions. In addition, some of the links above are affiliate links, meaning that at no additional cost to you, I may earn a commission if you click through and make a purchase.
#valuation #lbo #privateequity
⬇ Download the LBO Excel for FREE ⬇
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Love how clean your excel financial models look. The spacing, bold, italics, colors used. Makes reading it super clear. Thanks for the LBO walkthrough Ben. Appreciate you!
Great tutorial, very informative. Looking forward to more complex models.
Humble advice, If you could increase the volume in the video, it will be more clear.
gotcha thanks will be close to the mic next time
thank you so much this is helping me prepare for my internship this summer
Thanks Ben for this great video! Kindly remind that for Bank Loan's interest calculation from Year2, seems you multiply the Revolver's rate for Bank Loan:) Besides, could you pls explain on when to add on interest expense into the ending balance? See some other users also share the comment. Thank you and please continue the LBO series, very thorough and helpful!
hey thanks for the tutorial. Regarding the sources and uses, does it look different if you assume you dont need to refinance exisitng debt. Would the existing net debt then be both a source and use of funds?
Hi Ben. Have you sent the link to the new 2024 NVIDIA DCF model? Didn't get any email notification. Should I sign up again to get the download?
valuable information here
keep it coming ben
Thanks, will do!
Legend
Hello bro thank you for the wonderful content. I was wondering about the working capital facility aka. revolver, normally there will be no paydown for WC facility since it is a transactional basis, where we can drawdown the loan and paid back based on our sales term.
Amazing Tutorial. Thanks :)
1) Intrest expense; isn’t calculated more accurate by multiply rate with avergage of beginning and ending debt balance?
2) considering all cash available to pay down debt is unrealistic
Looking forward to more complex LBOs including some stress testing! 👍🏼
Well some company have cash sweep mechanism, I think this is just one of his scenario 😂. Agree tho def need something more complex
Leveraged free cash flow (LFCF) doesn't include adjustment of interest, why? it must be excluded form the net income under cash flow item to arrive at LFCF.
Great tutorial Ben! Just a quick question: When you're building the debt waterfall, shouldn't you be adding the interest generated to the BoP balance to the the EoP balance for each year? For example, for senior notes, the EoB for Year 1 should be 1,688, not 1,500. Is that correct?
Hell yeah, would join your discord for sure
Leveraged free cash flow (LFCF) doesn't include adjustment of interest, why? it must be excluded form the net income under cash flow item to arrive at LFCF.
Hi,
I think you made a small mistake: In the Debt Schedule, you calculated the interests in Bank Debt incorrectly. You have calculated Beginning Balance * Interest (Revolver). See line M104 to P104.
In my opinion MOIC should be 2.8x and IRR 23.2%.
Greetings from Germany
Quick question just so I can understand it properly, in the debt schedule how come the accruing interest isn’t added onto the ending balance or being paid off in the debt waterfall?
Is this because it is being paid off in the income statement at the top of the model?
Thanks for the great tutorial. Just a quick question: Is EBITDA not before D&A in the income statement?
ebitda is not an official metric aka its non gaap so you can kind of put it wherever. usually income statements also don’t have a separate d&a line
Ty for clarifying i was wondering that as well...@@rareliquid
I was about to ask something similar. The calculation of EBIT is not Gross Profit minus Opex minus D&A? Then to calculate EBITDA you just add D&A to the EBIT? Thanks in advance. Great video by the way
***[IMPORTANT] *** Hi Ben, you have taken Revolver's interest rate in the debt schedule for "year 1" onwards, instead of Bank Loan's interest rate.
The interest rate you used while calculating interest for Bank Debt is incorrect.
yup thanks fixed it in the model you can download
ebitda=bullshit earnings
link to ur discord