Excel LBO Modeler

Overview

Creates leveraged buyout models with debt structuring, amortization schedules, and sponsor returns analysis for private equity transactions.

Prerequisites

• Excel or compatible spreadsheet software

• Target company financial data

• Debt term sheet parameters

• Entry/exit multiple assumptions

Instructions

• Set up transaction structure (purchase price, debt/equity split)

• Build debt schedules for each tranche (senior, mezzanine, etc.)

• Create operating projections with debt service

• Calculate cash flow available for debt paydown

• Model exit scenarios and calculate IRR/MOIC

Output

• Complete LBO model with sources & uses, debt schedules, and returns

• IRR and MOIC at various exit multiples and years

• Sensitivity tables for entry/exit multiple and leverage

Error Handling

Error Cause Solution

Negative cash flow Debt service exceeds EBITDA Reduce leverage or restructure debt terms

IRR #NUM! No valid solution Check exit value exceeds equity contribution

Circular reference Cash sweep tied to interest Enable iterative calculation

Examples

Example: Mid-Market LBO Request: "Build an LBO model for a $100M EBITDA company at 8x entry" Result: 60% senior / 40% equity structure, 5-year model, IRR analysis at 7x-10x exits

Example: Add-On Acquisition Request: "Model a bolt-on acquisition with synergies" Result: Integrated model with synergy phase-in and accretion analysis

Resources

• Macabacus LBO Modeling

• WSO PE Interview Prep

• ${CLAUDE_SKILL_DIR}/references/lbo-formulas.md for debt schedule templates