excel-lbo-modeler

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

1. Set up transaction structure (purchase price, debt/equity split)
2. Build debt schedules for each tranche (senior, mezzanine, etc.)
3. Create operating projections with debt service
4. Calculate cash flow available for debt paydown
5. 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