Per the video, candidates looking to test their LBO modeling skill set should build an annual LBO model with a 5-year projection that contains the following:
- A 50% cash flow sweep that pays down outstanding debt in order of priority.
- Debt covenant analysis. Be sure to reference the term sheets for covenants.
- A standard 80 / 20 distribution waterfall for equity proceeds.
- And finally, an exit analysis worksheet that shows returns both gross and net of fees.
To download the files mentioned in the video please visit this page: LINK.
