Event Program
Intensive Curriculum
- Transaction Structure: Sources and uses, purchase price allocation, transaction fees and expenses
- Debt Modeling: Multi-tranche debt schedules, interest calculations, mandatory amortization, cash flow sweeps
- Operational Forecast: Revenue projections, EBITDA improvements, working capital optimization, capex planning
- Exit Scenarios: Strategic sale modeling, IPO alternatives, secondary buyout structures
- Returns Calculation: IRR analysis, money multiples, sensitivity testing across key variables
- Capstone Deliverable
- Full LBO model with five-year projection, multiple exit scenarios, and investment committee memorandum
Full Details
Private equity firms buy companies using significant debt, improve operations, and sell for returns that justify the risk. The LBO model calculates whether a potential deal can generate those returns given realistic assumptions.
This intensive teaches you to build complete LBO models using the same approach PE firms use. You start with sources and uses of funds, understanding how much equity and debt a transaction requires. Then build detailed debt schedules with multiple tranches, each having different interest rates, amortization requirements, and covenants.
Operating Model Integration
The operating forecast drives everything. Revenue growth assumptions, margin improvement initiatives, and working capital efficiency gains determine cash available for debt paydown. You learn to model operational improvements conservatively while identifying value creation levers that actually work.
Cash flow sweeps, refinancing options, and dividend recaps add complexity. You build these features into your model, understanding how PE firms extract value before exit and why lenders allow certain activities but restrict others.
Returns Analysis
Internal rate of return and cash-on-cash multiples measure success. You calculate these across different exit scenarios, understanding what EBITDA multiples and timing assumptions are required to hit target returns. Sensitivity tables show which variables matter most.
The course concludes with complete transaction models including management presentations. You finish understanding how deals get structured, where value comes from, and what makes certain targets attractive while others are too risky regardless of price.