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  0. Introduction to LBOs

Lecture Cheat Sheet

  • Blank excel to a 3-statement and IRR analysis
  • Use excel documents provided with each lesson to peruse formulas and check your work
  • Idea behind LBO
    • Sponsor buys Target with more debt than its own cash >> Target pays down the debt overtime >> After little to no debt remains, Sponsor sells the Target for high returns
  • Take this course if you are already familiar with basic corporate finance. I don't talk about what enterprise value is.
  • Best practices
    • Build out entire model a few times before honing in on specific formulas that you don't quite understand
    • Practice!
    • Make sure each formula is correct (use the provided excel sheets) your first time through