Simple Leveraged Buyout (LBO) Tutorial! FREE EXCEL INCLUDED

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Күн бұрын

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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

Пікірлер: 32

@rareliquid Ай бұрын

⬇ 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

@amospan14 Ай бұрын

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!

@zenilmehta4049 Ай бұрын

Great tutorial, very informative. Looking forward to more complex models.

@nickolazabal Ай бұрын

thank you so much this is helping me prepare for my internship this summer

@hongyulu8766 Ай бұрын

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!

@dharaneesh.16 Ай бұрын

Humble advice, If you could increase the volume in the video, it will be more clear.

@rareliquid Ай бұрын

gotcha thanks will be close to the mic next time

@matshedemann8782 21 күн бұрын

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

@chrisrwang Ай бұрын

valuable information here keep it coming ben

@rareliquid Ай бұрын

Thanks, will do!

@QrankChannel Ай бұрын

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! 👍🏼

@ammarutm7228 Ай бұрын

Well some company have cash sweep mechanism, I think this is just one of his scenario 😂. Agree tho def need something more complex

@JAQ1988 24 күн бұрын

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.

@b.r.h4088 Ай бұрын

Legend

@rohitxess1955 Ай бұрын

Amazing Tutorial. Thanks :)

@olli999 Ай бұрын

Hell yeah, would join your discord for sure

@quickcaster888 Ай бұрын

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?

@giryilham5892 28 күн бұрын

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.

@jmg8888 Ай бұрын

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?

@viktorkastro Ай бұрын

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?

@nickcimino829 15 күн бұрын

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!

@KrazedAspects Ай бұрын

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?

@ShubhamMahajan-mq7qw 17 күн бұрын

***[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.

@JAQ1988 24 күн бұрын

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.

@paula037 Ай бұрын

Thanks for the great tutorial. Just a quick question: Is EBITDA not before D&A in the income statement?

@rareliquid Ай бұрын

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

@user-yf8lj4lv6y Ай бұрын

Ty for clarifying i was wondering that as well...@@rareliquid

@d20207 Ай бұрын

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