Recommended prerequisite

Complete Module 8: LBO Mechanics & Modeling before starting this lab for the best experience.

LBO Spreadsheet Lab

WidgetCo LBO

Build a complete LBO model for WidgetCo, a $500M revenue industrial manufacturer. Work through entry assumptions, sources and uses, operating projections, debt schedule, and returns analysis step by step.

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Start by calculating the purchase price from the given EBITDA and entry multiple.

  • EBITDA: $100M (given)
  • Entry Multiple: 8.0x (given)
  • Purchase Price = EBITDA x Entry Multiple
EBITDA ($M)$100
Entry Multiple8.0x
Purchase Price ($M)