In this course, we are going to work through an LBO Case Study. This case study was created entirely by private equity industry professionals as part of a content creation initiative with Katten, an innovative law firm with 600+ lawyers. The objective of this case study solution will be to demonstrate how a transaction might be modeled on a live deal, complete with a step-by-step walk through of the model building process. This series will combine real life model-building mechanics with transaction theory and strategy to facilitate diving deeper into the material. The purpose of this additional detail is to help recreate an experience that more closely approximates what you might experience as a member of the deal team.
In this course you will learn how to update the balance sheet for a control equity buyout. The process will include developing a framework for the balance sheet adjustments, and then building a sources and uses table to populate the balance sheet adjustments.
Projecting an LBO model requires both a strong Excel skill set and an investor mindset. In addition to the mechanics of an LBO model, this course will dive deeper into the analysis required to make sound assumptions surrounding inputs and drivers.
This course will cover LBO exit analysis (aka LBO return analysis). The primary output that we are targeting through the construction of this worksheet is expected return on investment, which is critical to understand in any process, since it is the ultimate measure of investment success.