LBO Template excel model

Simple LBO Template Excel Model (Leveraged Buyout)

Tl;dr: A simple LBO template excel model to review the opportunity in acquiring a company with debt.

You may have heard about LBOs; where a massive amount of debt is used to buy a company. Some times it works great and the Private Equity firms make out like bandits, but other times things go pear shaped like at RJR Nabisco.

What’s an LBO? Will, in nerd speak, an LBO is a financial transaction in which a company is purchased with a combination of equity and debt, such that the company’s cash flow is the collateral used to secure and repay the borrowed money.

Download the LBO template


The simple LBO template

In 2010, KKR made a go of acquiring Perpetual Asset Management for $1.73bn. For fun to see what a deal would like, I made this template to have a quick look myself. There are far more complicated manners of evaluating an LBO, this isn’t one of them. it’s something you can churn out in an hour or two.

Screenshots of the model

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Comments 3

  1. does this model work with a Mac well?

    Also – is interest charged as a average outstanding per year or charged at beginning balance?


  2. Post

    Hey Jordan –

    Why don’t you just check… It’s free…

    All Excel basically works in Mac too. Mac just sucks for Excel… Well if you are a banker type who does shortcuts.

    I have no idea… I made this in like 2010 just for fun. I had all these models just sitting on my drive and thought I would just give them away for free.
    I would normally do average, but I have no clue.

    This model is for boshing out something an hour or so before a meeting. After that you do a big LBO model (Which I have but haven’t shared).

  3. Hey Alex!
    I usually make models for startups and this LBO isn’t simple at all for me even though here are like 20 cells to punch in but its amazing. Thanks for throwing it away for us freefolks.

    I really want to spend money on a detailed version of LBO/Merger Model. Please do list them on your website.

    I have spent atleast a day on each one of your models.
    I’m a fan to be honest.

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