K MENA LBO Modeling
LBO Modeling
Course Start Date: 12th November 2023
Training Duration: 4 Days
Practical application through exercises:
- Excel Exercises
- Case Studies
Learning Outcomes
Understand the characteristics of a good LBO candidate
Understand design and develop structure for a LBO model
Learn to forecast financial statements for the LBO target
Prepare flexible debt schedules for different sources of debt
Understand and prepare source of value creation in a LBO transaction
Perform scenario analysis and develop the LBO dashboard
Course Outlines
What is LBO and what are the key characteristics of a good LBO candidate
- Introduction to LBO modelling
- Model design and structure for the LBO case
- Forecasting the operating cash flows of the LBO target
- Target’s enterprise value and uses of funds
- Various sources of funds
○ Senior Debt (Term Loan A, B, etc.)
○ High yield, Mezzanine, PIK and Shareholder loan
○ Revolving line of credit
- Preparing flexible debt and interest repayment schedules for different sources of funding
- Incorporating cash sweep in debt schedules and avoiding circularity
- Calculating exit IRR and MOIC for the GP and
- Analysing the various sources of value creation – Revenue Growth, Margin Expansion, Multiple Expansion and Deleveraging
- Scenario and Sensitivity Analysis for analysing LBO
Case Study: Large global or regional LBO transaction