Introduction to Leveraged Buyouts (LBOs)

Name: Introduction to Leveraged Buyouts (LBOs)
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Rating: 5.00 (5 reviews)

Understand leveraged buyouts (LBOs) by constructing a simple LBO model which can be used to make investment decisions.

Construct a sources & uses schedule to understand the capital used for an LBO transaction
Forecast the company’s income statement and discretionary cash flow
Calculate expected returns to the equity holders to access the investment

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Corporate Finance Institute

Introduction to Leveraged Buyouts (LBOs)

Overview

Introduction to LBOs Overview

This course reviews what a leveraged buyout (LBO) is and the advantages of using a considerable amount of debt in a transaction. We will review how to build a sources & uses schedule to understand the amounts of capital used in the transaction.

A forecast of the company’s income statement and discretionary cash flow will be constructed. We will also build debt and equity schedules to assess the return to equity investors.

Finally, we will use various Excel tools to sensitize the outputs from the LBO model. Model alerts will also be constructed using custom and conditional formatting.

Who should take this course?

This course is ideal for those pursuing a career in investment banking or private equity. The course helps learners understand the basic concepts behind an LBO transaction and how to create a simple model of an LBO.

Recommended prerequisites

Excel, Financial Modeling, and Valuation

These are beneficial for fully engaging with the course material.

Introduction to Leveraged Buyouts (LBOs) Learning Objectives

Define what a leveraged buyout (LBO) is and why considerable leverage is used in these transactions.
Identify the key inputs for an LBO transaction and build a sources & uses schedule.
Create a forecast of EBITDA & discretionary cash flow to value an LBO transaction.
Build debt & equity schedules to complete the analysis of an LBO transaction.
Use Excel tools to sensitize & present the outputs from an LBO model.
Create LBO model alerts using custom & conditional formatting in Excel.

Prerequisite Skills

Recommended skills to have before taking this course.

Excel
Financial modelling
Valuation

What You'll Learn

Lesson

Multimedia

Exams

Files

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Investment Banking & Private Equity Modeling Specialization

Skills You’ll Gain Accounting, Advanced Financial Modeling, Excel, Financial Statement Analysis, Forecasting, Valuation, and more.
Great For Investment Banking, Private Equity, Equity Research, and more

Learn More

What Our Members Say

Good

Wonderful with a great lecturer

David Mangwana

Great introduction

This a great introduction course to a very complicated issue. Highly recommended. I look forward to the full LBO modeling course.

Aristeidis Arvanitis

Great Refresher

Great refresher for some looking to study-up / interview prep or get familiar with LBOs. Modeling was straightforward and easy to follow!

Alec Garza

Great course

A neat introduction to LBOs.

Peter Herszenyi

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Introduction to Leveraged Buyouts (LBOs)

Introduction to LBOs Overview

Who should take this course?

Recommended prerequisites

Introduction to Leveraged Buyouts (LBOs) Learning Objectives

What You'll Learn

Introduction

What is a Leveraged Buyout?

Building Sources and Uses

Forecasting EBITDA & Cash Flow

Forecasting Debt & Equity

Equity Return Sensitivity

Including Model Checks

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Investment Banking & Private Equity Modeling Specialization

What Our Members Say

David Mangwana

Aristeidis Arvanitis

Alec Garza

Peter Herszenyi

Adjikpe Ange

Frequently Asked Questions