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Public Course

LBO Modeling

Regular price $850.00 USD
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  • What you'll learn
  • Course Information
  • Venues
  • Prerequisites
  • Reviews
  • What you'll learn
  • LBO Modeling

    Delegates learn how to structure an LBO and model the impact of the new financing structure. This session concentrates on understanding the implications (both modeling and deal) of finance structuring. Delegates complete a fully integrated model with an income statement, balance sheet and cash flow statement.

    Learning outcomes

    • General overview of a levered transaction: basic principles
    • Drivers of value creation in a levered transaction
      • How leverage increases the return on equity
      • What makes a good LBO candidate
    • The concept of cash flow lending
      • The lender’s perspective: risk, return and exit routes
    • Structural subordination
    • Financial instruments used in levered transactions
      • Senior debt (revolving facility, terms A, B and C)
      • Second lien
      • Mezzanine loans
      • High yield bonds
      • PIK notes
      • Preferred shares, shareholder loans and vendor loan notes
      • Ordinary equity
    • Build a full LBO model from a template
      • Main deal assumptions: focus on cash flow drivers and how to sanity check preliminary assumptions
      • Sources and uses of funds table
      • Ownership structure
      • Goodwill calculation
      • Creating the opening balance sheet
      • Deal adjustments, including amortization of debt issuance fees
      • Tax loss carry forwards
      • Cash flows available for debt servicing
      • Repayment schedules for individual debt instruments
      • Acceleration of debt payments using a cash sweep mechanism
      • Modeling the revolving credit facility
      • Circularities and the interest calculations
      • PIK interest
      • Credit ratios
      • Calculation and interpretation of returns to the equity investors
      • Calculation and interpretation of returns to mezzanine investors
      • Sensitizing the outputs of the analysis
      • Modeling different operational scenarios using Excel functions
  • Course Information
  • 9.00am - 5.00pm GMT/BST/CET/HKT/EST

    1 day (non-exam)

    • Venues
    • London: Tenter House, 45 Moorfields, London EC2Y 9AE

      New York: 275 Madison Ave Suite 1201, New York, NY 10016

      Frankfurt: Mercure Hotel Frankfurt Eschborn Helfmann Park, Helfmann Park 1, 65760 Eschborn, Germany

      APAC -What is a Virtual Classroom?

      Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

    • Prerequisites
    • A solid understanding of the topics covered by our course Transaction comparables and LBO Analysis Fundamentals is required.

    • Reviews
    • Find our reviews here:


      Who should attend?

      New hires who have joined the firm late and missed the in-house program

      Individuals looking to fill a knowledge gap

      Experienced bankers looking to refresh their technical skills

      Teams employed in financial strategy roles from non-banking corporations

      Graduates preparing to interview for a role in the finance sector

      Students at business school and looking for a career in finance

      What to use

      You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

      Ask our trainers

      If you have any questions about the course content, you can email our experienced trainers for any further questions

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