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5-Year LBO

Build a complete 5-year LBO from a near-blank sheet: Sources & Uses with transaction fees, the five-year operating build, CapEx and working capital, the full debt-paydown schedule off levered free cash flow, and sponsor MoIC and IRR. Every line is linked, dragged across, and tied out.

PE · Intermediate · about 90 minutes · 27 guided steps

Lesson outline

Sources & Uses

  1. Step 1: LTM EBITDA
  2. Step 2: Entry Enterprise Value
  3. Step 3: Transaction Fees
  4. Step 4: Total Uses
  5. Step 5: Initial Debt
  6. Step 6: Total Equity Required
  7. Step 7: Management Rollover
  8. Step 8: Sponsor Equity
  9. Step 9: Sponsor Ownership %

Operating Build

  1. Step 10: Revenue
  2. Step 11: EBITDA
  3. Step 12: CapEx
  4. Step 13: Increase in NWC
  5. Step 14: Sponsor Monitoring Fee

Debt Schedule & Cash Sweep

  1. Step 15: Debt: Opening Balance
  2. Step 16: Interest Expense
  3. Step 17: Taxable Income
  4. Step 18: Taxes
  5. Step 19: Cash Sweep
  6. Step 20: Debt: Ending Balance

Returns

  1. Step 21: Exit Enterprise Value
  2. Step 22: Exit Transaction Fees
  3. Step 23: Exit Equity Value
  4. Step 24: Sponsor Share of Exit Equity
  5. Step 25: Total Sponsor Proceeds
  6. Step 26: Sponsor MoIC
  7. Step 27: Sponsor IRR