Advanced LBO Tutorial! (Part 2) | Built By Former JP Morgan Investment Banker

[@rareliquid]

hey all, so i gotta admit this is not my best stream because I struggled to figure out the right formulas to make the mandatory paydown + cash sweep formulas not mess up the model. basically from 1:42:20 to 2:24:00 i am on the struggle bus LOL and then afterwards i got a little tired. given i will fix the issues in part 3, the model (which you can download below) will be the exact same as this video so that we can pick up where we left off for part 3. the model is still functional so if you can practice and get up to this level, you'll be in great shape. ⬇ Download the Excel for FREE ⬇ ► Advanced LBO Part 2 Excel: www.wallstreetprep.com/access/burger-king-advanced-lbo-tutorial/ ► Sign up to get emails notifications for my streams and when the excel models are available: forms.gle/jMUPmnSp5pvC9sQb6 ► Join my Discord: discord.gg/AHnxBUGTwt 🧑‍🏫Wharton & Wall Street Prep PE Certificate Program🧑‍🏫 ► Use code RARELIQUID for up to $500 OFF ► secure.enroll.wharton.wallstreetprep.com/referral/fkx0rrss/s2yqD1GUkwps4u5h

[@Wizard-F]

Bro third part please......🙏🙏🙏 First two were amazinggggg.

[@rareliquid]

⏱Timestamps⏱ 0:00 - Introduction 8:50 - Forecasting Working Capital 30:19 - Forecasting Long Lived Assets 1:08:20 - Forecasting Cash Flow Statement 1:16:05 - Adding in Revolver and Subordinated Notes 1:27:38 - Revolver 1:42:20 - Mandatory Debt Paydown & Cash Sweep 2:24:00 - Subordinated Notes & PIK Interest 2:33:59 - Interest Expense 2:38:00 - Completing Cash Flow Statement 2:40:50 - Fixing Error in Model 2:56:26 - Final Words

[@alvarsanchisibanez8444]

Amazing job @rareliquid!! I think the issue with the paydown from excess cash flows (and the derived complications) comes from not linking the mandatory paydowns with the levered free cash flow the first time you were doing it. Additionally, regarding the mandatory repayment formula (2:20:00), I think we should not use the minimum as you always want to make mandatory payments and that's one of the reasons you leverage on the revolver.

[@ervellboyd7360]

Thank you for Part 2! I really enjoy learning from your videos. I appreciate how you take the time to work through difficult parts and allow us to see your thought process. Thank you! Looking forward to future videos.

[@PeteJDunn78]

Thanks Rare Liquid. I’ve watched the first 2 videos in full and have built the models along side. Question: when is the model and video for part III, the expert level LBO model coming out?

[@simba6512]

Thank you so much for the LBO video, I'm a huge fan!! Love your work honestly speaking. Hoping for an M&A video in the future. Thank you for the amazing content.

[@dfd7596]

Awesome, waiting for part 3

[@henlohenlo689]

woah. i heard mitt romney did leverage buy outs. to me it cool stuff to learn all these complex tricks. it hard find where or what to study to learn more about this stuff.

[@Eric-s1t9u]

Thanks! Is the part 3 up yet?

[@nagesh530]

Hi Ben, Great work, and thanks a lot when are you planning for the 3rd one.

[@kevinsuh5313]

Incredible resource!

[@nickylooho]

@1:13:33 why is the formula for Other Asset and Liabilities (A2-A1)-(L1-L2) different from the formula for Change in NWC (A2-A1)-(L2-L1), even though it should be the same?

[@ajithreddy533]

Hi why are you are not treating Cash & cash equivalent as a current assets? is that case you we already accountable in Transaction financial & assumptions

[@kennethhurley422]

@rareliquid how do i learn to make a clean spreadsheet like this?

[@JhenLabra]

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[@rareliquid]

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[@JhenLabra]

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