NEW more advanced LBO model here - ruclips.net/user/liveYuBqd0v7EOw ⬇ Download the LBO Excel for FREE ⬇ ► www.wallstreetprep.com/access/lbo-from-scratch/ ► Sign up to get emails notifications for my streams and when the excel models are available: forms.gle/jMUPmnSp5pvC9sQb6 🖥Wall Street Prep - Buy Side Certification🖥 ► Use code RARELIQUID to get $300 OFF! ► secure.enroll.wharton.wallstreetprep.com/referral/DSczdzDz/s2yqD1GUkwps4u5h 🍎My Courses🍎 ► How to get into MBA (LIVE): liquidmba.com/ ► How to get into investment banking (SIGN UP): forms.gle/wt4cZrezbxVgNzGUA ► How to get into consulting (SIGN UP): forms.gle/MmPxUqur7vBschUu9
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!
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!
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
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! 👍🏼
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.
Hello Ben, I am very new to finance as i decided just recently to get into it.I was confused as to why you layer out your operating model the way you did(Revenue to COGS to Gross Profits, ect.). This is my first time seeing a LBO video so i was hoping you may be able to provide more context on this. Is it like a order of operations in math for example where you need to solve the first question in order to get the information for the second. Thank you for the Amazing videos!
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.
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
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?
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?
First, thx for the video is very usefull. Now I have this particular question, shouldnt the EBIT be Revenues - COGS-OpEx-D&A? If it is so, your EBITDA is 600M and not 700... thx again.
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?
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.
NEW more advanced LBO model here - ruclips.net/user/liveYuBqd0v7EOw
⬇ Download the LBO Excel for FREE ⬇
► www.wallstreetprep.com/access/lbo-from-scratch/
► Sign up to get emails notifications for my streams and when the excel models are available: forms.gle/jMUPmnSp5pvC9sQb6
🖥Wall Street Prep - Buy Side Certification🖥
► Use code RARELIQUID to get $300 OFF!
► secure.enroll.wharton.wallstreetprep.com/referral/DSczdzDz/s2yqD1GUkwps4u5h
🍎My Courses🍎
► How to get into MBA (LIVE): liquidmba.com/
► How to get into investment banking (SIGN UP): forms.gle/wt4cZrezbxVgNzGUA
► How to get into consulting (SIGN UP): forms.gle/MmPxUqur7vBschUu9
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
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!
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!
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
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, very informative. Looking forward to more complex models.
thank you so much this is helping me prepare for my internship this summer
valuable information here
keep it coming ben
Thanks, will do!
Hello Ben, I am very new to finance as i decided just recently to get into it.I was confused as to why you layer out your operating model the way you did(Revenue to COGS to Gross Profits, ect.). This is my first time seeing a LBO video so i was hoping you may be able to provide more context on this. Is it like a order of operations in math for example where you need to solve the first question in order to get the information for the second. Thank you for the Amazing videos!
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.
***[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.
Video starts at 43:44
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
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?
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
Quick Question: why not renaming the cell with sales so you can just type it rather than going up every time?
Legend
Amazing Tutorial. Thanks :)
First, thx for the video is very usefull. Now I have this particular question, shouldnt the EBIT be Revenues - COGS-OpEx-D&A? If it is so, your EBITDA is 600M and not 700... thx again.
d&a is actually an OpEx, so when you do gross profit minus Opex you arrive directly at EBIT, then you adjust by adding back D&A to get to EBITDA.
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?
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.
The interest rate you used while calculating interest for Bank Debt is incorrect.
yup thanks fixed it in the model you can download
Robinson Brian Young Gary Lopez Melissa
Johnson Joseph Moore Karen Thompson James
Smith Deborah Smith Michael Jackson Michael
ebitda=bullshit earnings
link to ur discord