Simple Leveraged Buyout (LBO) Tutorial! FREE EXCEL INCLUDED

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@rareliquid 6 ай бұрын

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@amospan14 6 ай бұрын

Love how clean your excel financial models look. The spacing, bold, italics, colors used. Makes reading it super clear. Thanks for the LBO walkthrough Ben. Appreciate you!

@matshedemann8782 6 ай бұрын

Hi, I think you made a small mistake: In the Debt Schedule, you calculated the interests in Bank Debt incorrectly. You have calculated Beginning Balance * Interest (Revolver). See line M104 to P104. In my opinion MOIC should be 2.8x and IRR 23.2%. Greetings from Germany

@RajvirSingh-o2f 3 ай бұрын

Yeah it should be beginning * bank debt interest rate right

@hongyulu8766 6 ай бұрын

Thanks Ben for this great video! Kindly remind that for Bank Loan's interest calculation from Year2, seems you multiply the Revolver's rate for Bank Loan:) Besides, could you pls explain on when to add on interest expense into the ending balance? See some other users also share the comment. Thank you and please continue the LBO series, very thorough and helpful!

@maba5202 3 ай бұрын

thank you so much bro. I realised as well this could not be true haha

@dharaneesh.16 6 ай бұрын

Humble advice, If you could increase the volume in the video, it will be more clear.

@rareliquid 6 ай бұрын

gotcha thanks will be close to the mic next time

@zenilmehta4049 6 ай бұрын

Great tutorial, very informative. Looking forward to more complex models.

@martinsafarian4404 4 ай бұрын

Video starts at 43:44

@nickolazabal 6 ай бұрын

thank you so much this is helping me prepare for my internship this summer

@chrisrwang 6 ай бұрын

valuable information here keep it coming ben

@rareliquid 6 ай бұрын

Thanks, will do!

@urbanrapfms 2 ай бұрын

Shouldnt we include the initial debt when calculating the total debt at the last step?

@ShubhamMahajan-mq7qw 5 ай бұрын

***[IMPORTANT] *** Hi Ben, you have taken Revolver's interest rate in the debt schedule for "year 1" onwards, instead of Bank Loan's interest rate.

@LeoMessiBoss2000 3 сағат бұрын

Yes! Lost 10 min trying to figure out why it was NOT matching!

@edweaver1999 2 ай бұрын

Great video for building an LBO excel model! Thanks!

@iluvsenf 5 ай бұрын

Quick Question: why not renaming the cell with sales so you can just type it rather than going up every time?

@KrazedAspects 6 ай бұрын

Quick question just so I can understand it properly, in the debt schedule how come the accruing interest isn’t added onto the ending balance or being paid off in the debt waterfall? Is this because it is being paid off in the income statement at the top of the model?

@QrankChannel 6 ай бұрын

1) Intrest expense; isn’t calculated more accurate by multiply rate with avergage of beginning and ending debt balance? 2) considering all cash available to pay down debt is unrealistic Looking forward to more complex LBOs including some stress testing! 👍🏼

@ammarutm7228 6 ай бұрын

Well some company have cash sweep mechanism, I think this is just one of his scenario 😂. Agree tho def need something more complex

@JAQ1988 6 ай бұрын

Leveraged free cash flow (LFCF) doesn't include adjustment of interest, why? it must be excluded form the net income under cash flow item to arrive at LFCF.

@paula037 6 ай бұрын

Thanks for the great tutorial. Just a quick question: Is EBITDA not before D&A in the income statement?

@rareliquid 6 ай бұрын

ebitda is not an official metric aka its non gaap so you can kind of put it wherever. usually income statements also don’t have a separate d&a line

@ミ_ミ-d6n 6 ай бұрын

Ty for clarifying i was wondering that as well...@@rareliquid

@d20207 6 ай бұрын

I was about to ask something similar. The calculation of EBIT is not Gross Profit minus Opex minus D&A? Then to calculate EBITDA you just add D&A to the EBIT? Thanks in advance. Great video by the way

@giryilham5892 6 ай бұрын

Hello bro thank you for the wonderful content. I was wondering about the working capital facility aka. revolver, normally there will be no paydown for WC facility since it is a transactional basis, where we can drawdown the loan and paid back based on our sales term.

@JAQ1988 6 ай бұрын

Leveraged free cash flow (LFCF) doesn't include adjustment of interest, why? it must be excluded form the net income under cash flow item to arrive at LFCF.

@nickcimino829 5 ай бұрын

Hello Ben, I am very new to finance as i decided just recently to get into it.I was confused as to why you layer out your operating model the way you did(Revenue to COGS to Gross Profits, ect.). This is my first time seeing a LBO video so i was hoping you may be able to provide more context on this. Is it like a order of operations in math for example where you need to solve the first question in order to get the information for the second. Thank you for the Amazing videos!

@josetomasalcalde 5 ай бұрын

First, thx for the video is very usefull. Now I have this particular question, shouldnt the EBIT be Revenues - COGS-OpEx-D&A? If it is so, your EBITDA is 600M and not 700... thx again.

@jeremybelanger2793 4 ай бұрын

d&a is actually an OpEx, so when you do gross profit minus Opex you arrive directly at EBIT, then you adjust by adding back D&A to get to EBITDA.

@DH0518 6 ай бұрын

The interest rate you used while calculating interest for Bank Debt is incorrect.

@rareliquid 6 ай бұрын

yup thanks fixed it in the model you can download

@prateeksingh631 3 ай бұрын

Bro you never do a 3-statement model for some reason :/ But this is helpful neverthless. Can you also do a Private Equity / Investment Banking Questionnaire list

@quickcaster888 6 ай бұрын

hey thanks for the tutorial. Regarding the sources and uses, does it look different if you assume you dont need to refinance exisitng debt. Would the existing net debt then be both a source and use of funds?

@jmg8888 6 ай бұрын

Hi Ben. Have you sent the link to the new 2024 NVIDIA DCF model? Didn't get any email notification. Should I sign up again to get the download?

@viktorkastro 6 ай бұрын

Great tutorial Ben! Just a quick question: When you're building the debt waterfall, shouldn't you be adding the interest generated to the BoP balance to the the EoP balance for each year? For example, for senior notes, the EoB for Year 1 should be 1,688, not 1,500. Is that correct?