How to Build a PAPER LBO Model in 3 Steps! (FREE Excel Included)

[@rareliquid]

Links to all of the things I mentioned in the video below! 🧑‍🏫Wharton / Wall Street Prep PE Certificate Program🧑‍🏫 ► Learn from real investors (including the founder of Carlyle) about the private equity industry ► Use code RARELIQUID for up to $500 OFF for ANY cohort ► tinyurl.com/5n8kr4tz ⬇Download the Excel for FREE⬇ ► Paper LBO: www.wallstreetprep.com/lc-rl-paperlbo-template/ 🍎Sign up for my courses🍎 ► How to get into MBA programs: forms.gle/9yEyycuP7NnQBjue8 ► How to get into investment banking: forms.gle/wt4cZrezbxVgNzGUA ▶Playlists▶ ► Modeling and Finance Tutorials: kzbin.info/aero/PL71QplJWp1RoaKEMTo_9CZA-kyjwT5rGo ► Private Equity Videos: kzbin.info/aero/PL71QplJWp1Rrm0dkWjjIY2cf4jTYSU0t2

[@PCDisciple]

Such an underrated video. This is an incredible resource, hope you’re having a good time in Philly!

[@aishwaryapotdar1348]

Please do one for M&A as well. An accretion dilution or anything that you think is relevant! Thanks a lot for all of your videos.

[@rareliquid]

this has been requested quite a bit so will do this later on!

[@shanel.478]

Appreciate the IRR table, def very helpful

[@taylorparrish4323]

Great content. Would love to see more advanced / in-depth modelling videos. I have a finance degree and went into consulting after school. While there I taught myself to code and work as a data engineer these days. I've recenlty had a renewed interested in finance and have gone through some of your modelling videos to refresh.

[@gadripericles3034]

@Rareliquid did you remove the excel file for the paper LBO?

[@maximilianmunster8756]

Can you make a live stream where you Build a big LBO for a firm like your videos with the DCFs for apple and co

[@jasonfrancis0997]

I really love watching your modeling videos. I was wondering if you can do a DCF valuation tutorial for a bank. I'd really appreciate it, thanks

[@thesnackbandit]

Great video. Super high quality content, hardly a wasted moment. Keep up the great work.

[@shuangchen3708]

Link for excel has expired

[@fernandogonzalezhenr]

Would be nice a M&A transaction model of a company using leverage to buy another, and all the implications

[@str5148]

Sir i havea doubt, Exit equity value = Ent Value + Net debt - Cash So it will be 916 And MOIC will be 6.1x

[@joshturanich6646]

You will have to subtract the debt from your final cash flow generated because you have to pay the debt back to the lender after the 5 years. That is why it is negative rather than positive. Therefore it = exit EV - debt + FCF generated to get to your exit equity.

[@lars-andre]

Thanks for the video, always appreciated! Any way you could do a capitalization table?

[@darrelldas1962]

Literally missed these modelling videos. 😭. Precedent valuation can you make?

[@aishwaryapotdar1348]

Missed these as well!

[@rareliquid]

will try to do more!

[@zoetuan8326]

Thank you so much for all the great videos!! they helped a ton XD

[@markgarcia3239]

Seen a couple of your videos but can you explain how come you use CapEx through the entire life of the model? How would you handle a situation where CapEx is needed say in Year 0 or Year 1 and no additional CapEx is required?

[@christianandreaprile8477]

could you make a video where you analyze financial statement results please? for exemple j.pm Morgan last quarterly?... something like ''how to read financial statements''. it will be very helpful. thank you for your job

[@aishwaryapotdar1348]

Is it better to round to the nearest 5 or 10, in a paper lbo, for each step?

[@rareliquid]

depends on what units you're working with. so if it's below 100, then generally to the nearest 5 but if it's a few hundred+, nearest 10 is prob fine

[@aaronhornanfinance-bu8ft]

Thank you bro

[@1989Murmel]

Nice, would be nice with a video on reverse DCF also

[@bacool]

Know any friends from Wharton who were able to get into a no name LMM PE firm without a banking or PE bankground? Applying this cycle with entrepreneur and sales/marketing operating exp. I will do the Jan Cohort for the WSP course

[@MariaSimónGrau]

Someone has the free excel template? When I click on the link it says that the page is not found... Thanks a lot!

[@Gucci-dj3ko]

Same :(

[@olegdoev6388]

Same Issue

[@raphaeldeteglassy6179]

same :/

[@Nss1120]

Massive error in that income statement, MD would rail you for mislabeling the margin…

[@QrankChannel]

You mean the Ebitda / ebit margin thing? Indeed MD will go crazy especially its only noticed when shared with the client 😂

[@haoleotop5638]

Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

[@atchayphoemnay4114]

Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

[@user-hn3uu3gj2g]

Sheesh this LBO is bad you go to Wharton to trick people into applying for your “online class” eventually lol

[@rareliquid]

lol pls explain why this LBO is "bad." i'm guessing you're assuming that this should be a full-fledged 3-statement LBO with multiple debt tranches, a debt waterfall, multiple scenarios for operating assumptions, and etc when this is a PAPER LBO tutorial which is a common SIMPLE test that many recruiting for private equity need to take. if you have any experience whatsoever in banking or PE you would know from the title. paper LBOs are also a good beginner's step to understand how an LBO works the courses i've been working on are going to be extremely useful for candidates AND fairly priced. have spent 1 year working on it with a team when i could've easily made a shoddy course and started selling one 6 months ago

[@fezooyxd4113]

Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

[@cj7sanny399]

Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

[@yosf5972]

Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

[@shortsonly2846]

Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

[@ilyas092]

Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

[@rapamericain9987]

Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

[@mrareebytshorts6781]

Hey, when will you talk about the real company Cannafarm Ltd that brings profit?