LBO Model with Cash Sweep
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
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.
CLICK HERE TO DOWNLOAD THE LBO MODEL (w/ CASH SWEEP)
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.