Home / Case Studies / Corporate Acquisition & LBO Model
CASE STUDY
InteractiveCorporate Acquisition & LBO Model
A leveraged buyout model with sources and uses, PPA, debt schedule, covenants, sponsor IRR and MOIC, and a valuation football field.
Business challenge
A private equity sponsor needed to test the price it could pay for a packaging business, the debt it could carry, and the returns it would earn under different cases.
Outcome
The investment committee sees the value bridge from entry to exit, covenant headroom and IRR and MOIC across cases on one page.
Overview
A leveraged buyout model with sources and uses, PPA, debt schedule, covenants, sponsor IRR and MOIC, and a valuation football field. Inside: sources and uses and PPA; debt schedule with cash sweep; covenant tests and headroom; sponsor IRR, MOIC and value bridge; management equity waterfall; valuation football field. How to use this model: on the Dashboard sheet, use the drop-down in cell L1 to pick the scenario: Base, Downside or Upside.
Approach
Entry multiple and financing set sources and uses and the purchase price allocation. An operating case with synergies drives three integrated statements, a debt schedule with sweep and covenants, exit returns, a management waterfall and DCF, comps and precedent valuation.
Capabilities
Skills
LET'S WORK TOGETHER
Need something like this for your business?
Tell me what you are trying to solve. I’ll respond with a practical view of how I can help.