Simple LBO Model - Case Study and Tutorial

In this LBO Model tutorial, you’ll learn how to build a very simple LBO model “on paper“ that you can use to answer quick questions in PE (and other) interviews. By “Financial Modeling Training And Career Resources For Aspiring Investment Bankers“ This matters because in many cases, they’ll ask you to calculate numbers such as IRR and multiple of invested capital very quickly and will not actually ask you to build a more complex model until later in the process. You should always START this exercise by looking at the actual question or set of questions they are asking you: “Calculate the purchase price required for ABC Capital to obtain a multiple of invested capital (MOIC) if it plans to sell OpCo after five years at an EV / EBITDA multiple of .“ So they’re giving you the exit multiple and the return on investment that the PE firm is targeting, and you have to figure out the initial purchase pric