LBO Model with Cash Sweep

  • Peter Lynch

We are in the process of developing the next collection of videos and models for the Leveraged Buyout Model series. This new collection will cover the following topics:

  1. Transitioning from one worksheet to multiple worksheets.
  2. Adding preferred stock to the capital structure.
  3. Adding a cash flow sweep that will pay down all tranches of debt and preferred stock.

The videos and financial models for items one and two are already up; only the notes for these two topics are pending. I have been receiving a lot of requests the third model listed, but do not yet have the video prepared. As an interim solution I thought I would post the Excel file here while I work on the video.


To help guide you through the process of adding a cash flow sweep, rows altered for this update are indicated in Column A of every worksheet with pale purple shading (see image below).

The purpose of this installment is to transition from a model that uses excess cash to pay down the revolver, to a model that will use excess cash to pay down all debt liabilities and preferred stock. It does not, however, permit specifying the percentage of excess cash flow that should be used to make optional repayments. If you want to maintain a certain amount of cash you can do that in this model by specifying the minimum cash balance.

As always, all models on this website are intended for educational purposes only.