LBO Model Template

A leveraged buyout (LBO) happens when a private equity firm or a group of them buys a company mainly using borrowed money, usually making up 50-80% of the purchase price. The money the acquired company makes is then used to pay off that borrowed debt. The profit from an LBO relies on factors like how much money the company is making when it's sold, how it's valued when it's sold, and how much debt gets paid off.

In Finance interviews, candidates often get a practice LBO model to look at different things, such as:

•Figuring out how much the company is worth and if it can cover its expenses.
•Working out how much money can be made by taking the company private, growing it, and then selling it or making it public.
•Studying how changing the mix of debt and equity affects the company's finances.
•Checking if the company can handle its debt payments with the money it's making.

If you want to revise your LBO modelling skills, we'll give you our LBO model template excel file for free:

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