Module 8

LBO Mechanics & Modeling

The core math behind leveraged buyouts, from napkin-math paper LBOs to full operating models with debt schedules.

Lessons

Lesson 1

Why leverage amplifies returns, the equity check concept, and the risks of using other people's money

~20 min

Lesson 2

Building the table that balances every dollar flowing into and out of an LBO transaction

~20 min

Lesson 3

The 5-10 minute napkin math approach to evaluating an LBO, step by step with a worked example

~25 min

Lesson 4

Building a full income statement projection from revenue drivers through free cash flow

~25 min

Lesson 5

Modeling mandatory amortization, optional prepayments, and excess cash flow sweeps across debt tranches

~25 min

Lesson 6

Calculating IRR and MOIC under multiple scenarios using sensitivity tables and scenario analysis

~25 min