Debt Modelling (with LBO)
Why should you attend this course?
- You will learn how to construct a debt cash flow model in the context of an LBO transaction, which is crucial for financial analysis and transaction evaluation.
- You will gain skills in determining the Internal Rate of Return (IRR) and conducting a sensitivity analysis, allowing you to better understand the impact of different scenarios on the transaction.
- You will learn financial modelling best practice and techniques for working with LBO debt inputs and constraints, which will improve the quality and efficiency of your modelling.
- The course provides a practical approach to debt modelling using Excel functions, which is essential for solving specific debt problems.
Language of the course
English
Training level
intermediate
Who is this course for?
- For finance professionals who need to create, analyse and interpret cash flow models.
- For those working in the field of LBO (Leveraged Buyout) transactions, but also for those involved in other forms of debt modelling.
- For those with a basic knowledge of Excel. If you are not already familiar with the programme, we encourage you to complete it first to get the maximum benefit from this course.
Course programme
Key features of an LBO transaction: Length of investment; Exit routes – Initial Public Offering (IPO), trade sale, secondary buyout, liquidation; Cash generation and profitability growth of business being acquired; Source, length and credibility of forecasts; Finance mix.
Creating the operating model: Forecasting the operations of the business; Sales, EBITDA and working capital; Capex and depreciation.
Sources and uses of funds: Uses of funds (Equity acquisition, Refinanced debt, Fees); Sources (Debt capacity constraints, Senior tranches, Mezzanine).
Building the debt schedules: Circularity issues, Capital repayment options, PIK interest, Revolver, Cash sweep, Cash flow waterfall
Tax: EBIT vs PBT; Tax treatment of interest.
Equity return: IRR; Cash/money multiple.
Sensitivity analysis
Additional information
- In order to use the course effectively, it is necessary, in addition to viewing the online training, to have Excel turned on. To do this, we recommend using a second screen or an additional device to avoid constantly switching between windows.
- The course is based on Excel for Windows, it is recommended to use version 2010 or later.
- MAC users are welcome to attend the course, but some features may differ from the Windows version. The tutor will adapt the course content to the MAC version during the course if there are MAC users attending the training.
“The presenter was very good, gave good examples and was very communicative. He can explain everything in a simple way.”
From a feedback form on tailored training provided in 2023.5,57/6
Average evaluation of tutors and training materials among participants of workshops for companies organized in 2023-2024.“The training was conducted in an understandable manner and at the right pace.”
From a feedback form on tailored training provided in 2024.97%
of all participants of the 2023-2024 tailored workshops for companies would recommend our training to their friends!
Open courses
Our open courses are short courses taught by experienced tutors whose role is to give you practical knowledge and skills that you can use immediately in your daily work.
It's a great opportunity to expand your knowledge and enhance your skills, whether you're motivated by an internal desire to develop or by your employer.
Bespoke programmes for companies
Does your team need training on this topic? Or, would your organization benefit from additional focus on specific issues in the course program, allowing some elements to be explored in greater depth?
With bespoke programs, we can adjust the training content to meet your organization’s specific needs. This includes adding topics not covered in the standard program or omitting sections less relevant to your team. The final cost of customized training is set individually at the proposal stage.
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